Pick the type of payment, enter the amount and what you have paid this payee during the year. The calculator checks whether TDS applies under the current thresholds and works out the deduction and the net amount to pay.
The thresholds below were raised from 1 April 2025 and continue for FY 2026-27. Under the Income Tax Act, 2025 (in force from 1 April 2026) the old TDS sections such as 194C, 194J and 194-I are brought together in section 393, but the rates and limits are carried over, so most people still refer to the old section names.
Professional fees: 10% once payments to the same person exceed ₹50,000 in the year. Technical services and call-centre fees: 2%, same ₹50,000 limit. Contractors: 1% to individuals and HUFs, 2% to companies and firms, when a single payment exceeds ₹30,000 or the year's total exceeds ₹1,00,000. Rent paid by businesses: 10% for land, buildings and furniture and 2% for plant and machinery, when rent exceeds ₹50,000 for a month. Commission or brokerage: 2% above ₹20,000 a year. Interest: 10%, above ₹50,000 a year from a bank or post office (₹1,00,000 for senior citizens) and above ₹10,000 from other payers. Dividends: 10% above ₹10,000 a year. Buying property worth ₹50 lakh or more: 1% of the price.
If the payee has not given a PAN, TDS is deducted at 20% or twice the normal rate, whichever is higher.
A company pays a freelance designer ₹60,000 in one invoice. That is above the ₹50,000 yearly limit, so it deducts 10% (₹6,000), pays ₹54,000 and deposits the ₹6,000 with the government by the 7th of the next month. The designer later claims the ₹6,000 as a credit against their own income tax; it shows in their Form 26AS and AIS.
Salaried individuals and others who are not required to deduct TDS on business payments have a separate rule for rent above ₹50,000 a month: they deduct 2% once a year (old section 194-IB). Rent paid to a non-resident landlord follows different, higher rates.
This calculator covers payments to residents. It does not cover salary TDS, lower-deduction certificates or payments to non-residents. Verify with the TDS rate chart on the Income Tax Department website before filing.
₹50,000 per payee in a financial year. It was raised from ₹30,000 from 1 April 2025. Above it, TDS is 10% (2% for technical services).
For businesses, when rent exceeds ₹50,000 for a month: 10% on land, buildings and furniture, and 2% on plant and machinery. Individuals not covered by business TDS rules deduct 2% once a year when monthly rent exceeds ₹50,000.
TDS is deducted at 20%, or twice the normal rate if that is higher. The payee can avoid this by giving a valid PAN.
Generally by the 7th of the following month (TDS deducted in March can be deposited by 30 April). Late deposit attracts interest.
Yes. From 1 April 2026 the separate TDS sections are consolidated into section 393 of the new Act, with tables for each type of payment. The rates and thresholds were carried over.
No. It is an advance collection of the payee’s own tax. The payee claims the TDS against their final tax when filing, and gets a refund if too much was deducted.