TDS Calculator — FY 2025-26 (AY 2026-27)
Disclaimer: Indicative figures only. TDS rates are as per Income Tax Act. Always verify with a CA for your specific transaction. TaxClue is not liable for any tax decisions made solely on this calculator.
This TDS calculator works out the tax to deduct at source on a payment. Choose the payment type (salary, contractor, rent, FD interest, professional fee, commission, property or dividend), enter the gross amount, then confirm PAN, residency and frequency. The tool returns the exact TDS amount, the net payout, the applicable section, the threshold check and the challan due date for FY 2025-26. TDS must be deposited by the 7th of the following month (30 April for March).
How the TDS Calculator Works
The general formula is TDS = Gross Payment × Applicable Rate, but only once the payment crosses the section threshold. For salary (Section 192) the calculator instead applies the FY 2025-26 new-regime slabs on salary minus the ₹75,000 standard deduction, applies the Section 87A rebate up to ₹12 lakh taxable income, and divides the annual tax by 12 for the monthly TDS. If PAN is not available, Section 206AA forces a minimum 20% rate; for NRIs, higher rates apply and DTAA relief may need Form 10F + TRC.
TDS is deducted only when the payment (or annual aggregate) crosses the section threshold — e.g. ₹30,000 for a single 194C/194J bill, ₹2.4 lakh a year for 194I rent, ₹40,000 a year for bank FD interest under 194A. Below the threshold, TDS is nil even though a rate exists.
TDS Rate & Threshold Reference
Current TDS rates and thresholds for resident payees with a valid PAN, FY 2025-26 (AY 2026-27). Rates rise to 20% under Section 206AA if PAN is not furnished.
| Payment | Section | Rate | Threshold | Return |
|---|---|---|---|---|
| Salary | 192 | Slab rates | Basic exemption | 24Q |
| Contractor — individual/HUF | 194C | 1% | ₹30K single / ₹1L annual | 26Q |
| Contractor — company/firm | 194C | 2% | ₹30K single / ₹1L annual | 26Q |
| Professional / technical fees | 194J | 10% (2% tech.) | ₹30,000 / year | 26Q |
| Rent — land / building | 194I | 10% | ₹2.4L / year | 26Q |
| Rent — plant & machinery | 194I | 2% | ₹2.4L / year | 26Q |
| Interest — bank FD | 194A | 10% | ₹40K (₹50K senior) | 26Q |
| Commission / brokerage | 194H | 5% | ₹15,000 | 26Q |
| Purchase of property | 194IA | 1% | ₹50 lakh | 26QB |
| Dividend | 194 | 10% | ₹5,000 | 26Q |
| No PAN (any section) | 206AA | 20% | — | — |
Rates are for resident payees. NRIs attract higher rates (subject to DTAA). Threshold on 194A rose to ₹50,000 for senior citizens; general bank FD threshold shown as ₹40,000.
Worked example — contractor payment
A company pays ₹2,00,000 to an individual contractor (194C, 1%). Payment is above the ₹30,000 single-bill threshold, so TDS = ₹2,00,000 × 1% = ₹2,000. Net paid to the contractor = ₹1,98,000. The ₹2,000 must be deposited via Challan 281 by the 7th of the next month and reported in the quarterly 26Q.
Late deposit of TDS attracts interest at 1.5% per month (or part-month) from the date of deduction to the date of deposit. Late deduction attracts 1% per month. You need a TAN (not just PAN) to deposit TDS — property buyers under 194IA are the exception and use 26QB with PAN.
TDS Calculator — Frequently Asked Questions
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