TDS Calculator

Calculate Tax Deducted at Source instantly based on payment section and limits.

Tax Year 2026-27  |  Reviewed 8 September 2026

Payment Details

Use the amount relevant to the threshold note shown above. This simplified tool does not maintain a payment ledger.
If PAN is not provided, TDS is deducted at 20% or the standard rate, whichever is higher.
Check this if the yearly payment has already exceeded the threshold limit for this section.

TDS Calculation Result

TDS Amount to Deduct

₹ 5,000

Gross Payment Amount ₹ 50,000
TDS Deducted 10% - ₹ 5,000
Net Payable to Vendor ₹ 45,000

Understanding TDS (Tax Deducted at Source)

TDS is a means of collecting income tax in India, governed by the Income Tax Act, 1961. Any company or person making a specified payment is required to deduct tax at source if the payment exceeds certain threshold limits.

The person or company making the payment is the Deductor, while the person receiving the payment is the Deductee. The deductor is responsible to deposit this TDS amount to the Central Government before the 7th of the following month.

Common TDS Due Dates
  • Monthly Payment: 7th of the next month
  • March Payment: 30th April (extended)
  • Q1 Return (26Q/24Q): 31st July
  • Q2 Return: 31st October
  • Q3 Return: 31st January
  • Q4 Return: 31st May

Common TDS Rate Chart for Tax Year 2026-27

Section-wise TDS rates, threshold limits, and applicable payment types under the Income Tax Act, 1961.

Section Nature of Payment Threshold TDS Rate (with PAN) No PAN Rate
192SalaryAs per slabAs per slab20%
194ABank/post-office interest₹50,000 (₹1L senior citizen)10%20%
194CContractor/Subcontractor (Individual/HUF)₹30,000 / ₹1L yearly1%20%
194CContractor/Subcontractor (Others)₹30,000 / ₹1L yearly2%20%
194HCommission or Brokerage₹20,000/year2%20%
194-I(a)Rent: Plant, Machinery, Equipment₹50,000/month2%20%
194-I(b)Rent: Land, Building, Furniture₹50,000/month10%20%
194JProfessional fees₹50,000/year10%20%
194JTechnical services / call centre₹50,000/year2%20%
194IAProperty Purchase (from seller)₹50 Lakh1%20%
194IBRent by Individual / HUF (monthly rent)₹50,000/month2%20%
194TSpecified payment to a partner of a firm₹20,000/year10%20%
194QPurchase of Goods (by buyer)₹50 Lakh/year0.1%5%
194SPayment on transfer of Virtual Digital Assets (Crypto)₹10,0001%20%

Section 206AA applies when PAN is not furnished — TDS is deducted at 20% or the applicable rate, whichever is higher. Always refer to the Income Tax portal for the latest notifications.

Consequences of Not Deducting TDS

ViolationPenalty / Interest
Non-deduction of TDSInterest @ 1% per month from deduction date
TDS deducted but not paidInterest @ 1.5% per month from deduction to payment
Late filing of TDS return₹200/day (max = TDS amount)
Incorrect/non-filing of TDS return₹10,000–₹1,00,000 penalty (Sec 271H)
Expense disallowance30% of expense disallowed if TDS not deducted (Sec 40a)

TDS on Salary (Section 192)

Employers must calculate estimated annual salary and deduct TDS monthly. The formula:

Estimated Annual Gross Salary − Standard Deduction (₹75,000 New / ₹50,000 Old) − Declared Deductions (80C, 80D, HRA, etc.) = Taxable Income → Apply slab rates ÷ 12 = Monthly TDS to deduct
Tip: Employees can declare investments (80C, 80D, HRA) to their employer via Form 12BB at the start of the year to reduce monthly TDS deduction. Submit actual proofs before March.

Frequently Asked Questions

TDS (Tax Deducted at Source) is a mechanism where the payer deducts income tax at a prescribed rate before making payment to the payee. Employers deduct TDS on salaries, businesses deduct on rent, professional fees, contracts, interest, etc. The deducted amount is deposited with the government on behalf of the payee.

This estimator includes contractor payments at 1% or 2%, professional fees at 10%, specified technical services at 2%, commission or brokerage at 2%, specified rent at 2% or 10%, bank interest at 10%, and partner payments under section 194T at 10%. Thresholds and exceptions depend on the payment facts.

TDS is not applicable when: (1) payment is below the threshold limit, (2) deductee submits Form 15G/15H certifying income below taxable limit, (3) deductee holds a lower/nil deduction certificate under Section 197, (4) payments are between specified exempt entities like government departments.

Failure to deduct TDS attracts: (1) Interest at 1% per month from due deduction date, (2) 30% disallowance of the related expense in your business (Sec 40a), (3) Penalty of ₹10,000–₹1,00,000 for incorrect/non-filing returns (Sec 271H). Additionally, late payment of deducted TDS attracts 1.5% per month.

If excess TDS is deducted, file your ITR showing total income and TDS already deducted (visible in Form 26AS / AIS). If your actual tax liability is lower than TDS deducted, the excess is refunded to your bank account — typically within 1–4 months of ITR processing.

Form 15G is a self-declaration form submitted by individuals (below 60) with income below the basic exemption limit to request nil TDS on interest income. Form 15H is the senior citizen version. Submit at the start of each financial year to the bank/payer to avoid TDS deduction on FD interest or other eligible payments.

Form 26AS is your Annual Tax Credit Statement showing all TDS/TCS deducted against your PAN by all deductors, advance tax paid, self-assessment tax, and refunds issued. Available on the Income Tax e-filing portal, it must be verified against your salary slips and Form 16 before filing your ITR.

TDS must be deposited by the 7th of the month following the month of deduction (e.g., TDS deducted in August must be paid by September 7th). For March, the deadline is April 30th. TDS return (Form 26Q or 24Q) must be filed quarterly — Q1 by 31st July, Q2 by 31st October, Q3 by 31st January, Q4 by 31st May.
Reviewed 9 September 2026 Reference values can change. Verify important filings or decisions with the relevant authority.

Transparent calculation

Formula and rule sequence

MethodTDS = relevant payment amount × selected section rate, subject to the displayed threshold
  1. Identify the relevant amount and transaction type.
  2. Apply the displayed rate or slab to that amount.
  3. Verify classification, eligibility and current notification before filing.

Important assumption: Special rates, exemptions, place-of-supply rules and case-specific adjustments may not be represented.

Private by design, useful as an estimate

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Avoid entering passwords, bank credentials or unnecessary identity data. Outputs are estimates or editable templates—not legal, tax, investment, lending or accounting advice.

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