TDS Calculator
Pick the TDS section and payee type and see the applicable rate, the threshold, the TDS to deduct and the net payable — in seconds.
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How TDS works
Tax Deducted at Source (TDS) requires the payer of certain incomes — contractor payments, professional fees, rent, commission, interest and more — to deduct income tax at a prescribed rate before paying, and to deposit it with the government against the payee's PAN. Each type of payment has its own section of the Income-tax Act, its own rate, and its own threshold below which no TDS is required.
Why it matters
Deducting at the wrong rate, missing a threshold, or deducting at the normal rate when the payee has not given a PAN (which triggers a higher 20% rate under §206AA) leads to short-deduction notices, interest and disallowance of the expense. This calculator shows the applicable rate, the threshold and the net amount payable for the common sections.
Frequently asked questions
What happens if the payee has not provided a PAN?
Under §206AA, TDS must be deducted at the higher of the section rate or 20% (5% for §194Q). Always collect the payee's PAN before paying.
Is TDS deducted if the payment is below the threshold?
No. Each section has a threshold below which no TDS is required. Above it, TDS applies on the payment as prescribed.
What rate applies to contractor payments under 194C?
1% where the payee is an Individual/HUF and 2% for any other payee (company, firm), above the ₹30,000 per-contract / ₹1,00,000 annual threshold.
Do these TDS rates change?
Yes. The rates shown are the standard rates for FY 2026-27 (AY 2027-28) for resident payees and change with each Finance Act. Always confirm the current rate before deducting.
Estimate only — not tax advice. TDS rates and thresholds shown are the standard rates for FY 2026-27 (AY 2027-28) for payments to residents; they change with each Finance Act and depend on your facts (PAN, payee status, surcharge/cess). Confirm current rates with your CA before deducting.