TDS Calculator Tool – Compute TDS on Salary and Payments

Calculate accurate Tax Deducted at Source (TDS) for Professional Fees, Rent, Contractors, and more. Optimized for Indian Tax Laws AY 2025-26.

TDS Input Details

Payment Section (Nature of Payment) Professional Fees (194J) - 10% Technical Services (194J) - 2% Rent: Property (194I) - 10% Rent: Machinery (194I) - 2% Contractor: Indv (194C) - 1% Contractor: Others (194C) - 2% Commission (194H) - 2%

For Professional/Technical Services

Gross Bill Amount (Before Tax)

₹

PAN Card Available?

Section 206AA: 20% TDS if No PAN

TDS Deduction Amount

₹ 0

Net Payable (After TDS)

₹ 0

Calculation Summary

Invoice Value ₹ 0

Applicable TDS Rate 0%

Total Payout ₹ 0

Online TDS Calculator for FY 2025-26 (AY 2026-27)

Calculate Tax Deducted at Source (TDS) instantly for Salary, Contractors, Professionals, Rent, and Commission. Updated with the latest Finance Act amendments and reduced rates effective from October 1, 2024.

New Update

Major TDS Rate Changes for FY 2025-26

The Union Budget has significantly simplified the TDS structure to improve cash flow for taxpayers. If you are making payments in Financial Year 2024-25 or 2025-26, ensure you apply these reduced rates to avoid excess deduction.

📉 Commission & Brokerage (194H)

Rate reduced from 5% to 2%.

Applies to all agents/brokers (except insurance).

🏠 Rent by Individuals (194-IB)

Rate reduced from 5% to 2%.

For rent > ₹50,000/month paid by Individual/HUF.

🛍️ E-commerce Payments (194-O)

Rate slashed from 1% to 0.1%.

Huge relief for e-commerce sellers.

☂️ Life Insurance Payout (194DA)

Rate reduced from 5% to 2%.

On the income portion of the policy.

How to Use This TDS Calculator?

1. 1

   Select Nature of Payment: Choose the correct section (e.g., 194C for Contractors, 194J for Professionals) from the dropdown.

2. 2

   Enter Payment Amount: Input the gross amount payable to the party (excluding GST). TDS is always calculated on the base amount.

3. 3

   Select Payee Status: Choose if the receiver is an Individual/HUF or a Company/Firm. Rates differ for Section 194C.

4. 4

   Check PAN Validity: Important! If the payee does not provide a PAN, select "No PAN." The tool will automatically apply the higher rate (usually 20%).

⚠️ The 20% Penalty Rule (Section 206AA)

Under Section 206AA of the Income Tax Act, furnishing a valid Permanent Account Number (PAN) is mandatory for the payee.

If the PAN is not provided or is invalid/inoperative (not linked with Aadhaar), the deductor must deduct TDS at the higher of the following rates:

• Rate specified in the relevant Act.
• Rate or rates in force.
• Flat rate of 20%.

TDS Rate Chart FY 2025-26 (AY 2026-27)

Updated for payments made on or after Oct 1, 2024

Section	Nature of Payment	Threshold Limit (₹)	Rate (With PAN)
192	Salary Payment	Basic Exemption	Slab Rate
194C	Payment to Contractors (Individual/HUF)	30k (Single) / 1L (Agg)	1%
194C	Payment to Contractors (Others/Company)	30k (Single) / 1L (Agg)	2%
194H	Commission or Brokerage	15,000	2% (New)
194I (a)	Rent: Plant & Machinery	2,40,000	2%
194I (b)	Rent: Land & Building / Furniture	2,40,000	10%
194J (a)	Professional Fees (Doctors, Lawyers, etc.)	30,000	10%
194J (b)	Tech Services / Call Centers / Royalty	30,000	2%
194Q	Purchase of Goods (> 50 Lakhs turnover)	50 Lakhs	0.1%

Understanding TDS on Salary (Section 192)

Unlike other sections which have a fixed flat rate (like 1% or 10%), TDS on salary is calculated based on the employee's Income Tax Slab.

Employers must estimate the annual income of the employee, deduct eligible exemptions (HRA, Standard Deduction), and then calculate tax based on the New Tax Regime (default for FY 2025-26) or Old Tax Regime (if opted).

Note: Under the New Tax Regime, there is zero tax for income up to ₹7 Lakhs (Section 87A Rebate). Standard Deduction has also been increased to ₹75,000.

TDS on Sale of Property (Section 194-IA)

Buying a house worth more than ₹50 Lakhs? You are liable to deduct TDS.

• Rate: 1% of the Total Consideration.
• Threshold: Applicable only if property value exceeds ₹50 Lakhs.
• Form: The buyer must file Form 26QB. No TAN is required for this specific section.

TDS Payment & Return Due Dates

🗓️ Payment Due Date

TDS deducted in a month must be deposited to the government by the 7th of the next month.

Example: TDS deducted in April must be paid by May 7th. (For March, due date is April 30th).

📄 Return Filing (Form 26Q/24Q)

• Q1 (Apr-Jun): July 31st
• Q2 (Jul-Sep): October 31st
• Q3 (Oct-Dec): January 31st
• Q4 (Jan-Mar): May 31st

⚠️ Late Filing Penalty: ₹200 per day under Section 234E.

Frequently Asked Questions (FAQs)

What is the difference between Section 194C and 194J?

Section 194C is for payments to contractors for physical work (labour, transport, manufacturing), taxed at 1% or 2%.
Section 194J is for "Professional or Technical Services" (lawyers, doctors, engineers, consultants). The rate is 10% generally, but 2% for technical services like call centers.

Does TDS apply on GST amount?

No. As per CBDT Circular 23/2017, if the GST component is shown separately in the invoice, TDS should be deducted only on the taxable value (base amount) excluding GST.

When is TDS deducted at 0.1%?

TDS is deducted at 0.1% under Section 194Q (Purchase of goods of aggregate value > ₹50 Lakhs) and now under Section 194-O (E-commerce participants) as per the latest Budget 2024 updates.

How can I claim a TDS refund?

You cannot claim a refund directly from the deductor. You must file your Income Tax Return (ITR). If your total tax liability is less than the TDS deducted, the Income Tax Department will refund the excess amount to your bank account.