01
Pick the payment type
Select the TDS section that matches the payment — professional fees, contractor, rent, commission, interest, partner remuneration, and more. Each carries its own rate and threshold.
TDS Calculator
Tax deducted at source on a payment — the right rate and amount by section.
Updated Reviewed by Sajid Hussain· Editor
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Your numbers
TDS bills sellers in Indian Rupee (INR), so this calculator works in INR — not your selected US Dollar ($). Every figure below matches your real TDS statement. Localised USD marketplaces are coming soon.
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Last updated
June 10, 2026
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India Tax Tool
What Is a TDS Calculator?
A TDS calculator works out the Tax Deducted at Source on any payment in India — applying the correct section rate and threshold to your amount, then showing the TDS to deduct and the net the payee receives.
TDS is tax collected at the moment of payment: the payer deducts a slice and deposits it with the government on the payee's behalf. Get the section, rate, or threshold wrong and you either under-deduct (and face interest and penalty) or over-deduct (and annoy your vendor). This calculator picks the right rate for the payment type and checks the threshold for you.
**The rate depends on the section.** Each kind of payment maps to a TDS section with its own rate — 10% on professional fees (194J), 1% or 2% on contractors (194C), 10% on rent (194I), 2% on commission (194H), and so on. Choose the payment type and the calculator applies the correct rate automatically.
**The threshold decides whether TDS applies at all.** Below a section's annual limit, you deduct nothing. Most calculators ignore this and blindly apply the rate — this one checks the threshold and shows ₹0 TDS when you are under it, so you never over-deduct on small payments.
**No PAN means a 20% hit.** If the payee has not shared a PAN, Section 206AA forces TDS at 20% (capped at 5% for e-commerce and goods). That is double the usual 10% on most payments — the calculator flags it so you can collect the PAN first.
**Built for the current rules.** It reflects the Budget 2025 changes effective 1 April 2025 — the 194J threshold raised to ₹50,000, 194H cut to 2%, higher interest and rent limits, and the brand-new Section 194T on partner remuneration. Older charts still show the outdated figures.
Quick facts
- Tax year
- FY 2025-26 (AY 2026-27)
- Sections covered
- 194C · 194J · 194I · 194H · 194A · 194T · 194Q · 194O
- Threshold-aware
- Shows ₹0 below the limit
- No-PAN rule
- 20% under Section 206AA
- Payees
- Resident (Section 195 excluded)
- Free to use
- No sign-up needed
How It Works
Calculate TDS in Three Steps
02
Enter the annual amount and PAN status
Type the total yearly payment to this party, and confirm whether they have given a PAN. Turn PAN off to see the 20% Section 206AA rate.
03
Read the TDS and net payment
See the TDS to deduct, the net amount the payee receives, the rate applied, and whether the payment crosses the threshold. A warning appears if you are below the limit.
Steps to use the TDS Calculator: Pick the payment type, Enter the annual amount and PAN status, Read the TDS and net payment.
The Formula
How TDS Is Calculated in India
01
TDS amount
TDS = Amount × Rate ÷ 100 (only if Amount > Threshold)
The TDS is the payment times the section rate — but only once the annual payment crosses the section's threshold. Below the threshold, TDS is zero.
Example: ₹1,00,000 professional fees (194J, 10%, threshold ₹50,000) → TDS = ₹10,000
02
Net payment
Net Payment = Amount − TDS
The payee receives the gross amount minus the TDS. The deductor pays this net amount and deposits the TDS with the government.
Example: ₹1,00,000 − ₹10,000 TDS = ₹90,000 paid to the professional
03
No-PAN rate (Section 206AA)
Rate = max(Section Rate, 20%) (5% cap for 194O / 194Q)
When the payee has not provided a PAN, TDS is deducted at the higher of the section rate and 20%. For e-commerce (194O) and goods purchase (194Q), the no-PAN rate is capped at 5%.
Example: ₹1,00,000 professional fees with no PAN → 20% → TDS = ₹20,000
Worked Example
Step-by-Step Walkthrough (₹1,00,000 professional fees, 194J)
Currency note: the example below uses a benchmark scenario priced in Indian Rupee (INR). Values are converted to US Dollar (USD) at the latest exchange rate so you can compare against your own numbers.
Scenario
A business pays $100,000.00 in professional fees for the year to a consultant who has provided a valid PAN.
1
Step 1 · Section & rate
Professional fees fall under Section 194J, which carries a 10% TDS rate for residents with a PAN.
Rate = 10% (Section 194J)
2
Step 2 · Threshold check
Section 194J has an annual threshold of 50,000. The $100,000.00 payment is above it, so TDS applies.
Above threshold — TDS applies
3
Step 3 · Calculate TDS
TDS = $100,000.00 × 10% = $10,000.00.
TDS = $10,000.00
4
Step 4 · Net payment
The consultant receives the amount minus TDS: $100,000.00 − $10,000.00 = $90,000.00.
Net payment = $90,000.00
The takeaway
On $100,000.00 of professional fees, the business deducts $10,000.00 as TDS under Section 194J and pays the consultant $90,000.00. The $10,000.00 must be deposited with the government by the 7th of the next month — and the consultant claims it back as a credit in their income tax return.
TDS by rate
TDS Amount by Rate Tier (FY 2025-26)
| Metric | Poor | Average | Good | Excellent |
|---|---|---|---|---|
₹50,000 payment Income Tax Dept TDS chart FY 2025-26 | 10% → ₹5,000 | 2% → ₹1,000 | 1% → ₹500 | 0.1% → ₹50 |
₹1,00,000 payment Income Tax Dept TDS chart FY 2025-26 | 10% → ₹10,000 | 2% → ₹2,000 | 1% → ₹1,000 | 0.1% → ₹100 |
₹5,00,000 payment Income Tax Dept TDS chart FY 2025-26 | 10% → ₹50,000 | 2% → ₹10,000 | 1% → ₹5,000 | 0.1% → ₹500 |
Section at each rate Income Tax Dept TDS chart FY 2025-26 | 10%: 194J/194I/194A | 2%: 194H/194C-co | 1%: 194C-ind | 0.1%: 194Q/194O |
Comparison
Calcrux vs ClearTax vs Quicko
| Feature | Calcrux (Free) | ClearTax | Quicko |
|---|---|---|---|
| Section-wise rate lookup | |||
| Threshold-aware (shows ₹0 below limit) | |||
| New Section 194T (partner remuneration) | |||
| No-PAN 5% cap for 194O / 194Q | |||
| Net payment + smart insights | |||
| Free, no sign-up required |
Common Mistakes
TDS Mistakes That Cost You
Deducting TDS below the threshold
Why it matters
Many people apply the rate to every payment, even small ones. If the annual payment is below the section threshold, no TDS is due — over-deducting blocks your vendor's cash flow and creates needless refund claims.
Fix
Check the threshold status this calculator shows. Below the limit it returns ₹0 TDS, so you only deduct when you must.
Using outdated rates and limits
Why it matters
Budget 2025 changed several figures — 194J threshold rose to ₹50,000, 194H dropped to 2%, interest and rent limits went up. Old charts give the wrong number and cause short or excess deduction.
Fix
This calculator uses the current FY 2025-26 rates and Budget 2025 thresholds, so the figure is right for the year.
Forgetting the 20% no-PAN rate
Why it matters
When the payee has no PAN, Section 206AA forces 20% — double the usual 10% on most payments. Deducting the normal rate leaves you liable for the shortfall.
Fix
Turn off the PAN toggle to see the 206AA rate. Always collect the payee's PAN before paying to apply the lower rate.
Missing the 194C single-payment rule
Why it matters
Section 194C triggers TDS on any single bill above ₹30,000, even if the annual total stays under ₹1,00,000. People who only watch the annual limit miss this and under-deduct.
Fix
For 194C, the calculator warns you in the ₹30,000–₹1,00,000 zone so you can deduct on a large single bill.
Overlooking the new Section 194T
Why it matters
From April 2025, partnership firms and LLPs must deduct 10% TDS on partner remuneration and interest above ₹20,000 a year. Many firms have never deducted on partner payments before and are caught out.
Fix
Select Section 194T for partner payments. The calculator applies the 10% rate and the ₹20,000 threshold.
Using resident rates for non-residents
Why it matters
Payments to non-residents fall under Section 195 — different rates, plus surcharge, cess, and DTAA relief. Using the resident rate badly under-deducts and exposes you to penalty.
Fix
This tool is for resident payees only. For non-resident payments, consult a tax adviser who can apply Section 195 and any treaty rate.
Pro Tips
Get TDS Right Every Time
Check the threshold first
Before deducting, confirm the annual payment crosses the section limit. Below it, no TDS is due — deducting anyway just creates refund paperwork for your vendor.
Collect PAN before paying
Always get the payee's PAN up front. Without it you must deduct 20% under Section 206AA — double the usual rate on most payments.
Deposit by the 7th
Deposit TDS by the 7th of the next month (30 April for March deductions). Late deposit costs 1.5% interest per month, so do not let it slip.
Pick the right section
Use the right section — professional fees are 194J, contractors 194C, rent 194I. Picking the wrong one applies the wrong rate and threshold.
File the quarterly return
Deducting and depositing is only half the job — file the quarterly TDS return (24Q/26Q) so the payee gets the credit in their Form 26AS and can claim it.
Who Uses This
Who Uses This TDS Calculator
The TDS Calculator works across every stage of the workflow.
Business owners paying vendors
A company paying a consultant ₹2,00,000 needs to deduct the right TDS before releasing payment. They pick 194J, see ₹20,000 TDS, and pay the net ₹1,80,000.
Freelancers and consultants
A freelancer wants to know how much TDS a client will withhold on their ₹1,50,000 invoice, so they can plan cash flow and claim the credit when filing their return.
Landlords and tenants
A business tenant paying ₹3,00,000 annual rent checks the 194I rate and threshold to deduct ₹30,000 TDS and deposit it correctly.
Accountants and TDS practitioners
An accountant verifying a client's deductions across many sections uses the section picker and threshold check to confirm each figure before filing the quarterly return.
Partnership firms and LLPs
A firm paying partner remuneration must now deduct under the new Section 194T. They use the calculator to apply 10% above the ₹20,000 threshold.
Glossary
Key TDS Terms Explained
Every important term you'll encounter in this calculator and the broader topic.
- TDS (Tax Deducted at Source)
- Tax that the payer deducts from a payment and deposits with the government on the payee's behalf. It is an advance collection of the payee's income tax.
- Deductor & Deductee
- The deductor is the payer who deducts and deposits the TDS; the deductee is the payee whose tax is deducted. The deductee claims the TDS as a credit when filing their return.
- Threshold Limit
- The annual payment amount below which no TDS is required for a section. Once payments cross it, TDS applies to the full amount, not just the excess.
- Section 206AA
- The provision that forces TDS at the higher of the normal rate and 20% when the payee has not provided a PAN. The no-PAN rate is capped at 5% for Sections 194O and 194Q.
- Section 194T
- A new section effective 1 April 2025 requiring partnership firms and LLPs to deduct 10% TDS on partner remuneration, interest, or commission above ₹20,000 a year.
- TAN
- Tax Deduction and Collection Account Number — a 10-digit number every deductor must quote when depositing TDS and filing TDS returns.
- Form 26AS
- A consolidated tax statement showing all TDS credited against a taxpayer's PAN. The deductee uses it to claim TDS credit while filing their income tax return.
- Form 26QB
- The challan-cum-statement a property buyer files to deposit 1% TDS under Section 194-IA. It replaces a TDS return for property, and no TAN is required.
- Net Payment
- The amount the payee actually receives after TDS is deducted — the gross payment minus the TDS withheld.
Help & answers
Frequently asked questions
Everything you need to know about how the TDS Calculator works.
01What is a TDS calculator?
A TDS calculator works out the Tax Deducted at Source on a payment in India. Pick the payment type (the TDS section), enter the amount, and it returns the correct rate, the TDS to deduct, and the net amount the payee receives — using the current FY 2025-26 rates and thresholds.
02How is TDS calculated?
TDS = payment amount × the section rate, but only once the annual payment crosses that section's threshold. For example, professional fees of ₹1,00,000 under Section 194J (10%, threshold ₹50,000) means TDS of ₹10,000 and a net payment of ₹90,000.
03What are the TDS rates for FY 2025-26?
Common rates: 194J professional fees 10% (technical 2%), 194C contractor 1% (individual) or 2% (company), 194I rent 10% (building) or 2% (plant), 194H commission 2%, 194A interest 10%, 194T partner remuneration 10%, and 194Q/194O 0.1%. Each has its own threshold.
04What is the TDS threshold limit?
It is the annual amount below which no TDS is deducted. Below the threshold you deduct nothing; once total payments cross it, TDS applies to the full amount. Limits vary by section — for example ₹50,000 for 194J professional fees and 194A bank interest, ₹2,40,000 for 194I rent.
05What is the TDS rate on professional fees under 194J?
Section 194J is 10% on professional fees and 2% on technical/call-centre fees. The threshold was raised from ₹30,000 to ₹50,000 in Budget 2025, so no TDS applies until annual fees cross ₹50,000.
06What is the TDS rate on rent under Section 194I?
Section 194I is 10% on rent of land, building, or furniture and 2% on rent of plant or machinery, with an annual threshold of ₹2,40,000. (Individuals or HUFs not under audit deduct under Section 194IB instead, on rent above ₹50,000 a month.)
07What is the TDS rate if PAN is not available?
If the payee has not given a PAN, TDS is deducted at 20% under Section 206AA — the higher of the normal rate and 20%. For Sections 194O and 194Q the no-PAN rate is capped at 5%. Always collect the payee's PAN to apply the lower normal rate.
08What is Section 194T?
Section 194T is a new TDS provision effective 1 April 2025. Partnership firms and LLPs must deduct TDS at 10% on salary, remuneration, bonus, commission, or interest paid to partners once the aggregate crosses ₹20,000 in a financial year.
09What is the TDS on buying property (Section 194-IA)?
1% of the sale price. When you buy immovable property worth ₹50 lakh or more, you (the buyer) deduct 1% TDS on the full consideration — not just the part above ₹50 lakh — and deposit it with Form 26QB. No TAN is needed, and on instalments you deduct on each one.
10Is TDS deducted on EPF withdrawal (Section 192A)?
Yes, if you withdraw ₹50,000 or more before completing 5 years of service. The EPF withdrawal then attracts 10% TDS under Section 192A. Withdrawals after 5 years of continuous service are fully exempt and attract no TDS.
11What is the TDS rate on dividends (Section 194)?
10% under Section 194, once dividends from a company cross ₹10,000 in a year (raised from ₹5,000 in Budget 2025). The company deducts it before paying you, and you claim it as a credit when filing your income tax return.
12When is TDS not deducted?
No TDS is deducted when the annual payment stays below the section threshold. For instance, professional fees under ₹50,000 a year (194J) or contractor payments under ₹1,00,000 a year (194C) attract no TDS — though 194C also triggers on any single bill above ₹30,000.
13When must TDS be deposited with the government?
TDS deducted in a month must be deposited by the 7th of the next month. The exception is March, where the deadline is 30 April. Late deposit attracts interest at 1.5% per month, so deduct and deposit on time to avoid penalties.
14Does this calculator work for non-resident (NRI) payments?
No — this calculator is for resident payees. Payments to non-residents fall under Section 195, with different rates plus surcharge, 4% cess, and any applicable DTAA relief. Consult a tax adviser for non-resident TDS, as it needs case-by-case treatment.
15Is this TDS calculator free and accurate?
Yes — it is free, needs no sign-up, and runs in your browser. Rates and thresholds follow the Income Tax Department's FY 2025-26 chart and the Budget 2025 changes (194J ₹50,000 threshold, 194H 2%, new 194T). For unusual cases, confirm against the official rate chart or a tax adviser.
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Topics
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