Taxation

Link copied!

TDS Calculator

Use this TDS Calculator to see the TDS deducted from your salary, rent, or professional fees, using the current year's rate chart. Adjust any input below and your results update instantly.

Your details

Adjust the inputs below and your results update instantly.

Payment type

The kind of payment being made; each section has its own rate and exemption threshold.

e.g. Professional/technical fees

PAN provided

Off applies Section 206AA's 20% floor.

Technical service (not professional)

Switches the rate from 10% to 2%.

Annual professional/technical fees (₹)*

Total fees paid for professional services (legal, medical, consulting) or technical services during the year.

₹0₹20L

e.g. ₹80,000 for the year

These are example numbers. Edit any input on the left to see your own.

TDS withheld from this payment

₹8,000

10%: Section 194J

Payment amount

₹80,000

Net payment

₹72,000

₹8,000 is withheld at 10%, and the payee receives ₹72,000.

Compare scenarios

See how PAN status or a larger payment would change the TDS withheld.

Your plan

PAN provided

₹8,000

TDS amount

Baseline

Without PAN

Section 206AA

₹16,000

TDS amount

More TDS

Payment ×2

₹1.60 L

₹16,000

TDS amount

Same rate applies

Worked example, using your numbers

A step-by-step walkthrough for professional/technical fees (Section 194J).

Step 1 · Threshold check

Your payment against the Section 194J threshold of ₹50,000:

Exceeds it

Step 2 · Applicable rate

With a valid PAN on file, the rate is

10%

Step 3 · TDS withheld

Applying that rate to the full payment gives

₹8,000

✓

TDS of ₹8,000 is withheld at 10%, and the payee receives ₹72,000 net.

Personalised insights

What your numbers reveal, and what changing them would do.

TDS applies: ₹8,000 withheld at 10%

Your ₹80,000 payment exceeds the ₹50,000 threshold for Professional/technical fees (Section 194J).

Net payment after TDS: ₹72,000

Out of ₹80,000, ₹8,000 is withheld and deposited with the government. The payee receives the rest.

PAN is on file: the standard rate applies

Without a valid PAN, Section 206AA would push this to at least 20%.

Doubling the payment doesn't double the rate

At ₹1.60 L, the same 10% rate still applies. Only the threshold check (crossed once, either way) actually changes anything.

How this is calculated

Every step of the math behind your result, shown in the open.

TDS on salary: Section 192

Remaining Tax = your estimated annual tax not yet withheld, Months Left = payroll cycles remaining in the year, Monthly TDS = this month's deduction

Salary doesn't have a flat TDS rate; employers spread your remaining estimated tax evenly across the payroll months left in the year, recalculating each month as both figures change.

Example: Salary uses monthly spreading instead: see the Section 192 card for that formula

Does TDS apply at all?

Payment = the amount paid or credited, Threshold = that section's exemption limit, Applicable = whether TDS is deducted at all

Every non-salary section here has its own threshold: payments at or below it need no TDS at all. Cross it, and the entire payment (not just the excess) becomes subject to TDS.

Example: ₹80,000 > ₹50,000 threshold → TDS applies

TDS amount

Payment = the amount paid or credited, r = the applicable rate for that section, TDS = tax deducted at source

Once a payment crosses its threshold, TDS is deducted at that section's rate; the payer withholds this amount and deposits it with the government on the payee's behalf.

Example: ₹80,000 × 10% → ₹8,000 TDS

No PAN penalty: Section 206AA

r = the section's normal rate, r_final = the rate actually applied

Section 206AA overrides every section above: if the payee hasn't furnished a valid PAN, the deductor must withhold at least 20%, even where the normal rate is much lower, like a contractor's 1–2%.

Example: PAN provided → standard 10% rate applies

Assumptions

This covers six common sections: salary (192), interest (194A), professional/technical fees (194J), contractor payments (194C), rent (194-I), and commission (194H). Property purchases (194-IA), individual rent (194-IB), and e-commerce/goods purchases (194-O/194Q) aren't modeled.
Section 194C's ₹1.00 L threshold is treated as an annual aggregate only, but a single payment over ₹30,000 also triggers TDS even if the yearly total stays lower, which isn't modeled here.
A lower or nil-rate certificate under Section 197 isn't modeled. This always applies the standard rate for the selected section.
Figures are indicative only, not tax advice. Consult a chartered accountant for your actual TDS obligations.
Based on TDS section thresholds and rates as of July 2026. Source: Income Tax Department.

Understanding TDS

The concept, the motivation, and what to watch out for.

Tax withheld before it ever reaches you

TDS (Tax Deducted at Source) is how the government collects tax as income is paid, rather than waiting for you to file months later. Whoever pays you (an employer, a bank, a client) withholds a percentage and deposits it with the government on your behalf, before you see the rest.

Each type of payment has its own section, rate, and exemption threshold. This calculator covers the most common ones: salary, interest, professional/technical fees, contractor payments, rent, and commission.

Thresholds are a cliff, not a slab

Unlike income tax slabs, most TDS thresholds are all-or-nothing: cross it, and TDS applies to the entire payment, not just the amount above the threshold.

No PAN means a much higher rate

Section 206AA forces a minimum 20% TDS rate if the payee hasn't furnished a valid PAN, often far higher than the section's normal rate.

TDS isn't your final tax, it's an advance

Whatever gets withheld here is adjusted against your actual tax liability when you file your return. If your total income falls in a lower bracket than the TDS rate assumes, you can claim the excess back as a refund.

Did you know?

A few facts behind India's TDS rules.

20%

No PAN can cost you 10x the normal rate

A contractor payment normally attracts just 1–2% TDS, but without a PAN on file, Section 206AA pushes that up to a flat 20%.

194C

The same contractor payment, two different rates

Section 194C charges 1% when the payee is an individual or HUF, and 2% for every other kind of contractor: companies, firms, and the rest.

₹6L

Rent's threshold jumped 2.5x in Budget 2025

The annual rent threshold for TDS rose from ₹2,40,000 to ₹6,00,000 (equivalent to ₹50,000 a month), sparing many smaller tenancies from TDS entirely.

Commission TDS was cut by more than half

Budget 2024 dropped the Section 194H rate on commission and brokerage from 5% to 2%, effective October 2024.

Cliff

One rupee over the threshold changes everything

Most TDS thresholds aren't marginal like income tax slabs: cross one by even ₹1, and TDS applies to the full payment, not just the amount past the threshold.

Frequently asked questions

Straight answers to the questions we hear most about TDS.

What is the TDS full form?

The TDS full form is Tax Deducted at Source: whoever is paying you (an employer, bank, or client) withholds a percentage and deposits it with the government upfront, rather than the tax authority waiting for you to pay everything at filing.

What is TDS and why does it exist?

TDS (Tax Deducted at Source) requires whoever is paying you (an employer, bank, or client) to withhold a percentage and deposit it with the government upfront, rather than the tax authority waiting for you to pay everything at filing.

Is there interest if TDS is deducted but deposited late?

Yes. Section 201(1A) charges 1%/month for late deduction and 1.5%/month for late deposit after deduction, calculated from the due date to the actual date, counting any part of a month as a full month. This calculator computes the TDS amount itself, not this late-payment interest penalty.

What happens if a payment is exactly at the threshold?

No TDS applies here: the payment has to exceed the threshold, not just reach it. A ₹50,000 professional fee (exactly at the Section 194J threshold) attracts no TDS; ₹50,001 does, on the full amount.

What if the payee doesn't have a PAN?

Section 206AA forces a minimum 20% TDS rate, regardless of what the section would normally charge, often several times higher than the standard rate.

Does salary TDS work the same way as the other sections?

Not really: salary has no flat rate or threshold. Your employer estimates your annual tax liability and spreads whatever's left over the payroll months remaining in the year, adjusting the monthly figure as your income or investment declarations change.

Can I get back TDS that was deducted?

Yes. TDS is a credit against your final tax liability, not an extra charge. If your actual tax liability for the year is lower than the TDS withheld, you claim the difference as a refund when you file your return, using the credit reflected in Form 26AS.

Does this cover every TDS section?

It covers the six most common everyday sections, not every one. Others, like TDS on property purchases (194-IA), rent by individuals not subject to audit (194-IB), or e-commerce/goods purchases (194-O/194Q), aren't modeled here.

Is this tax advice?

No. This tool provides indicative estimates based on your inputs and the rates in force at the time. Consult a chartered accountant for your actual TDS obligations.