TDS Calculator
Calculate TDS with PayClever — pick a payment category, enter the amount, and see the TDS deducted and your net payment at current rates and thresholds.
No PAN means a flat 20% rate under Section 206AA, regardless of category
TDS amount
₹5,000
- Payment amount
- ₹50,000
- Rate applied
- 10%
- Threshold status
- Exceeded — TDS applies
- Net payment (after TDS)
- ₹45,000
Share your result
TDS amount
₹5,000
On ₹50,000 · Net payment: ₹45,000
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Current TDS rates and thresholds by category
Section labels are the familiar pre-April-2026 references — see the FAQ below for what changed.
| Category | Section | Rate | Threshold |
|---|---|---|---|
| Interest on bank/FD deposits | 194A | 10% | ₹40,000 per year (₹50,000 for senior citizens) |
| Payment to contractors — individual/HUF payee | 194C | 1% | ₹30,000 per transaction (or ₹1,00,000/year aggregate) |
| Payment to contractors — company/firm/other payee | 194C | 2% | ₹30,000 per transaction (or ₹1,00,000/year aggregate) |
| Commission or brokerage | 194H | 2% | ₹20,000 per year |
| Rent — land/building/furniture (business payer) | 194-I | 10% | ₹50,000 per month (≈₹6,00,000/year) |
| Rent — plant/machinery/equipment (business payer) | 194-I | 2% | ₹50,000 per month |
| Rent paid by an individual/HUF (not under tax audit) | 194-IB | 2% | ₹50,000 per month |
| Professional fees | 194J | 10% | ₹50,000 per year |
| Technical services fees | 194J | 2% | ₹50,000 per year |
Why TDS thresholds work differently from tax slabs
Income tax slabs are marginal — you only pay the higher rate on the portion of income that falls into the higher band. TDS thresholds don't work that way at all: they're a trigger, not a starting point. The moment a payment crosses the threshold for its category, the deduction applies to the entire payment, not just the amount above the threshold. A ₹41,000 interest payment (just over the ₹40,000 threshold) has TDS deducted on the full ₹41,000, not on the ₹1,000 excess — which is why staying just under a threshold, where legitimately possible, actually avoids the deduction entirely rather than just reducing it.
TDS itself is not an additional tax on top of what you already owe — it's a prepayment, credited against your actual tax liability when you file your return. If your real liability for the year (computed on your total income, at your slab rate) comes out lower than what's already been deducted across all your TDS categories, you get the difference refunded. This is exactly why the amount deducted here and the amount you ultimately owe under the Income Tax Calculator can differ — TDS is withheld per-transaction during the year using category-specific rates, while your real liability is computed once, on your whole year's income, at the end.
Frequently asked questions
What is TDS, and why does it get deducted before I receive payment?
TDS (Tax Deducted at Source) requires the person making certain payments — interest, rent, contractor fees, professional fees, and more — to deduct tax upfront and deposit it with the government, rather than the recipient paying the full tax themselves later. It's a collection mechanism, not an extra tax: whatever's deducted shows up as a credit against your own final tax liability when you file your return.
What happens if TDS is deducted but I don't have a PAN?
Section 206AA overrides the payment category's normal rate with a flat 20% if you haven't furnished your PAN to the payer — regardless of what the category's standard rate would otherwise be. This is one of the few TDS rules meant to be a real deterrent, since 20% is meaningfully higher than most category rates (typically 1%-10%).
Do the old TDS section numbers (194C, 194J, etc.) still apply?
As statutory references, no — effective 1 April 2026, the Income-tax Act 2025 renumbered nearly all of them under a single Section 393 (non-salary TDS) using numeric payment codes, with Section 392 covering salary TDS separately. The underlying rates and thresholds mostly carried over unchanged in the renumbering (rent paid by an individual/HUF is the one rate that also changed, from 5% to 2%), but an actual TDS return filed today references the new payment codes, not the old section numbers — this calculator keeps the familiar section labels for recognizability, not as the current filing reference.
Can I claim back TDS that's been deducted?
Yes — TDS deducted on your behalf is a credit against your total tax liability for the year, reflected in your Form 26AS/AIS. If your actual tax liability (computed at your slab rate, on your total income) is lower than the TDS already deducted, you get the difference back as a refund when you file your return; if it's higher, you pay the balance.
What's the difference between TDS on rent for a business vs. an individual?
A business or entity (not an individual/HUF) paying rent above ₹50,000/month deducts 10% for land/building/furniture or 2% for plant/machinery. An individual or HUF not subject to a tax audit, paying rent above that same ₹50,000/month threshold, instead deducts a flat 2% under a separate, simpler one-time compliance mechanism — no TAN registration or monthly returns required, just a single annual challan-cum-statement.
Not sure which TDS category applies to your payment?
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FY 2026-27 · Last updated September 2026
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