TDS Applicability & Rate Checker
Pick the nature of payment and the amount — instantly see the TDS section, threshold, applicable rate and the exact tax to deduct.
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- Rules cited on the page
Fill in the details — the answer on the right updates as you go.
Deduction detail
Get TDS deducted, deposited & returns filed right
We compute the correct section & rate, deposit your TDS on time and file quarterly returns (24Q/26Q).
Disclaimer: Indicative TDS estimate for FY 2026-27 (AY 2027-28) per the Finance Act 2025. Thresholds are annual/aggregate unless stated. Actual liability may vary with lower-deduction certificates (197), 206AB non-filer rates and specific facts. Verify before deposit.
TDS rate reference — FY 2026-27
The most common TDS sections a business or individual deductor uses, with the annual/aggregate threshold beyond which TDS must be deducted, the normal rate when PAN is available, and the higher no-PAN rate under Section 206AA.
| Nature of payment | Section | Threshold | Rate | No PAN (206AA) |
|---|
How TDS applicability works
Deducting TDS is a four-step check. Get any step wrong and the expense can be disallowed under Section 40(a)(ia), plus interest and penalty.
Identify the section
Match the nature of payment to the correct TDS section — 194C for contractors, 194J for professionals, 194-I for rent, and so on.
Check the threshold
TDS applies only once the amount (single or aggregate for the year) crosses the section's threshold. Below it, no TDS is required.
Apply the rate
Use the normal rate if PAN is available. If no valid PAN, deduct at the higher 206AA rate (usually 20%).
Deposit & report
Deposit the TDS by the 7th of the next month and file the quarterly TDS return so it reflects in the payee's 26AS / AIS.
Key terms explained
Section 206AA — no PAN
If the payee fails to furnish a valid PAN, tax must be deducted at the higher of the specified rate, the rate in force, or 20% (5% for 194Q, 30% for gaming). This is why collecting PAN before payment matters.
Form 26AS / AIS
The TDS you deduct and deposit shows up in the payee's Form 26AS and Annual Information Statement. The payee claims this as credit against their own tax when filing the return.
Deposit by the 7th
TDS deducted in a month must be deposited to the government by the 7th of the following month (April deductions by 30 April). Late deposit attracts 1.5% interest per month.
Quarterly TDS return
Deductors file a quarterly return — 24Q for salary, 26Q for other resident payments — and issue Form 16 / 16A certificates so payees can claim credit.
Questions people ask
Short answers on TDS Applicability Checker. Tap a question to open it.
01How do I know which TDS section applies?
By the nature of the payment, not the payee. Contract work falls under 194C, professional and technical fees under 194J, rent under 194-I or 194-IB, commission under 194H, interest under 194A, and salary under 192. Each has its own rate and threshold.
02Do individuals have to deduct TDS?
An individual or HUF must deduct under sections 194C, 194J, 194H and 194-I if their accounts were subject to tax audit in the preceding year. Outside that, sections 194-IA, 194-IB and 194M can still apply to an individual.
03What is section 194M?
It requires an individual or HUF not covered by the audit-based obligation to deduct 2% on payments to a resident contractor or professional exceeding ₹50 lakh in a year, reported through Form 26QD using PAN rather than a TAN.
04What if the payee has no PAN?
Section 206AA requires deduction at the higher of the specified rate, the rate in force, or 20%. For 194-O and 194Q the higher rate is 5%.
05What is the consequence of not deducting?
Interest at 1% a month under section 201(1A) until deduction, a possible penalty, and disallowance of 30% of the expenditure under section 40(a)(ia) in computing business income.
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Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.