TDS Calculator
Work out TDS on a business payment before you release it. Pick the payment type, enter the amount and what you have already paid this payee this year, and see the section, the rate, whether the threshold is crossed and what the payee actually receives.
Amounts exclude GST when GST is shown separately on the invoice. Rates are for tax year 2026-27 under Section 393 of the Income-tax Act, 2025 (old 1961 Act section in brackets). Check the latest CBDT notification before you file.
Deposit the TDS through challan by the due date, report it in the quarterly TDS return and issue the TDS certificate. Late deposit draws interest at 1.5% a month.
Your inputs stay in your browser. Nothing is stored.
How to calculate TDS on a payment
TDS is the taxable amount multiplied by the rate for that payment type. The tricky part is the taxable amount: once a yearly threshold is crossed, TDS usually applies to everything paid to that payee in the year, including earlier payments you did not deduct on.
The value you are paying or crediting, before GST if GST is shown separately. Check the payee ledger for what you have already paid this year, because crossing the yearly threshold pulls earlier payments in too.
Example: ₹80,000 paid earlier + ₹4.5 lakh now = ₹5.3 lakhThe rate set for the payment type in the Section 393 table. Read it from the rate table below. If the payee has not given a valid PAN, use 20% instead (5% for purchase of goods).
Example: contractor that is a company = 2%The amount below which no TDS is needed. Some limits are per payment, some per month and most per year, per payee. Take them from the rate table and the payee's ledger.
Example: professional fees, ₹50,000 a year| Paid earlier this year | ₹80,000 |
| This invoice (before GST) | ₹4,50,000 |
| Aggregate for the year | ₹5,30,000 |
| Rate (company payee) | 2% |
| Net paid on this invoice | ₹4,39,400 |
| TDS on this payment | ₹10,600 |
- Check the threshold: this invoice is above ₹30,000 and the year's total crosses ₹1 lakh
- The earlier ₹80,000 had no TDS, so it joins the base: 5,30,000
- Apply the rate: 5,30,000 × 2% = ₹10,600
- Pay the contractor 4,50,000 minus 10,600 = ₹4,39,400, and deposit the TDS by 7 December
TDS rate chart for tax year 2026-27
From 1 April 2026, non-salary TDS sits in one table under Section 393 of the Income-tax Act, 2025. The old 1961 Act sections are shown in brackets so you can match them to older returns and ledgers. The thresholds are the ones raised by the Finance Act, 2025.
| Payment | Section | Rate | Threshold |
|---|---|---|---|
| Contractor, individual or HUF | 393(1) S.6(i) (194C) | 1% | ₹30,000 a payment or ₹1 lakh a year |
| Contractor, any other payee | 393(1) S.6(i) (194C) | 2% | ₹30,000 a payment or ₹1 lakh a year |
| Professional fees | 393(1) S.6(iii) (194J) | 10% | ₹50,000 a year |
| Technical services, call centre, film royalty | 393(1) S.6(iii) (194J) | 2% | ₹50,000 a year |
| Director fees (not salary) | 393(1) S.6(iii) (194J) | 10% | No threshold |
| Commission or brokerage | 393(1) S.1(ii) (194H) | 2% | ₹20,000 a year |
| Rent, plant or machinery | 393(1) S.2(ii) (194I) | 2% | ₹50,000 a month |
| Rent, land, building or furniture | 393(1) S.2(ii) (194I) | 10% | ₹50,000 a month |
| Interest, payer not a bank | 393(1) S.5(iii) (194A) | 10% | ₹10,000 a year |
| Interest from a bank or post office | 393(1) S.5(ii) (194A) | 10% | ₹50,000 a year (₹1 lakh for senior citizens) |
| Purchase of goods | 393(1) S.8(ii) (194Q) | 0.1% | Only on purchases above ₹50 lakh a year |
| Partner salary, interest, commission | 393(3) S.7 (194T) | 10% | ₹20,000 a year |
| No valid PAN | 397 (206AA) | 20% | Or the normal rate if higher; 5% for goods |
Rates for resident payees, tax year 2026-27, before surcharge and cess (none applies to resident business payments). S. = serial number in the Section 393 table. Purchase of goods applies only when the buyer's turnover was above ₹10 crore in the previous year. Check the latest CBDT notification before filing.
Get a one-page summary of the section, rate, threshold check, TDS and deposit date for this payment.
How to get TDS right on every payment
Most TDS notices come from three things: the wrong section, a missed threshold and a late deposit. These habits close all three.
Tag the TDS section and rate in the vendor master at onboarding, so the payables team is not deciding it invoice by invoice.
Thresholds run per payee per year. Without a running total, the payment that crosses ₹1 lakh slips through with no catch-up deduction.
A missing PAN pushes the rate to 20%. Make it a mandatory field before a vendor can be paid.
TDS deducted in a month is due by the 7th of the next month, and by 30 April for March. Our TDS late payment interest calculator shows what a delay costs.
When GST is shown separately on the invoice, TDS applies to the value before GST. Deducting on the gross amount over-deducts and annoys vendors.
Match deductions in your books with challans and Form 26AS every quarter. A TDS reconciliation template makes the gaps easy to spot before you file.
Frequently asked questions
Find the section for the payment, check whether the threshold is crossed, then multiply the taxable amount by the rate. A ₹2 lakh professional fee attracts 2,00,000 × 10% = ₹20,000 of TDS, and the professional receives ₹1,80,000.
Non-salary TDS moved to Section 393 of the Income-tax Act, 2025, which lists every payment type in one table. Salary TDS is in Section 392 and TCS in Section 394. Old sections such as 194C and 194J still apply to payments made before 1 April 2026.
Without GST, as long as the GST is shown separately on the invoice. If the invoice shows one consolidated figure, TDS applies to the full amount.
20%, or the normal rate if that is higher. For purchase of goods the rate without PAN is 5%. The older rule of twice the rate for non-filers was removed by the Finance Act, 2025.
Once payments to one contractor cross ₹1 lakh in the year, TDS applies to the whole year's total, including earlier bills under ₹30,000 that had no deduction. The catch-up is usually taken from the payment that crosses the limit.
By the 7th of the month after the deduction. TDS deducted in March can be deposited until 30 April. Government offices paying without a challan must deposit on the same day.
Related finance calculators
Enter your business email to download your results.
- Section, rate and threshold check
- TDS, net payable and deposit due date
- Instant download, no waiting