TDS Calculator
Estimate TDS on common Indian payments for FY 2026-27 under the Income-tax Act 2025 (section 393). Pick a payment type, enter this bill and your year-to-date total, set PAN status, and see whether the threshold is met, the rate (old 194-series and new table labels), TDS on this payment, and net payable. Covers contractors, professional fees, rent, commission, interest, dividend, property, goods (194Q), e-commerce, partners and more. Free, in your browser — no sign-up.
By ScaleSaathi Editorial · Rules last checked 23 Oct 2026 · Sources
Before you deduct TDS on a bill
- Law: FY 2026-27, section 393 of the Income-tax Act 2025, shown with both the old 194-series and new labels. Thresholds checked 23 October 2026.
- What to enter: This bill’s value without GST, plus the total paid to the same payee in the financial year.
- No PAN: The rate rises to 20% in most cases, or 5% for goods and e-commerce (section 397(2)). Example from the page: ₹60,000 of professional fees means ₹6,000 TDS, or ₹12,000 without PAN.
- Not covered: Salary, non-residents, DTAA, Form 15G/15H and TCS.
- Old rates: 194-IB and 194M are 2%, not 5%.
Result — FY 2026-27
TDS appliesTax year 2026-27 · Income-tax Act 2025
₹6,000
TDS on this payment
By ScaleSaathi Editorial · Updated 23 October 2026 · Facts checked against the Income Tax Department (Act 2025 s.393 and s.397(2))
How to use this TDS calculator
- Choose the payment type that matches your invoice (contractor, professional fees, rent, commission, interest, property, goods, and so on).
- Enter this payment in rupees (exclude GST if it is shown separately).
- Enter the FY total paid or credited to the same payee including this bill — required for yearly thresholds and for goods / e-commerce / dividend relief.
- Set PAN (and senior citizen for bank interest, or payee type where shown).
- Read whether TDS applies, the rate with old and new section labels, TDS on this payment, and net payable. Print or copy the summary.
How TDS works in India (FY 2026-27)
From 1 April 2026, most non-salary TDS for residents is governed by section 393 of the Income-tax Act, 2025. Familiar 1961 labels (194C, 194J, 194-I, 194Q…) still appear on Form 26AS and in practice; this calculator shows both. You deduct tax when you pay or credit the sum (whichever is earlier), deposit it (generally by the 7th of the next month; March often by 30 April), and file the quarterly return (commonly Form 26Q). The payee claims credit via Form 26AS / AIS.
If the payee does not furnish a valid PAN, section 397(2) pushes the rate up to 20% in most cases, or 5% for purchase of goods and e-commerce operator payments.
Common TDS sections and thresholds (with PAN)
Rates below are for resident payees with a valid PAN. Thresholds follow section 393 tables as checked on 23 October 2026.
| Section | Nature | Rate | Threshold |
|---|---|---|---|
| 194C / Sl.6(i) | Contractor Ind/HUF | 1% | ₹30,000 single or ₹1,00,000/year |
| 194C / Sl.6(i) | Contractor others | 2% | same |
| 194J / Sl.6(iii) | Professional fees | 10% | ₹50,000/year |
| 194J / Sl.6(iii) | Technical / call centre / film royalty | 2% | ₹50,000/year |
| 194-I / Sl.2(ii) | Rent land/building/furniture | 10% | ₹50,000/month |
| 194-I / Sl.2(ii) | Rent plant/machinery | 2% | ₹50,000/month |
| 194-IB / Sl.2(i) | Rent by Ind/HUF (non-audit) | 2% | ₹50,000/month |
| 194H / Sl.1(ii) | Commission / brokerage | 2% | ₹20,000/year |
| 194A / Sl.5(ii) | Bank / post office interest | 10% | ₹50,000 (₹1,00,000 senior) |
| 194A / Sl.5(iii) | Other interest | 10% | ₹10,000/year |
| 194 / Sp.7 | Dividend | 10% | Ind. non-cash relief ≤₹10,000 |
| 194-IA / Sl.3(i) | Immovable property | 1% | ≥₹50 lakh (higher of price/stamp) |
| 194Q / Sl.8(ii) | Purchase of goods | 0.1% | excess over ₹50 lakh |
| 194-O / Sl.8(v) | E-commerce participant | 0.1% | Ind/HUF relief ≤₹5 lakh with PAN |
| 194T / Sl.7 | Partner payments | 10% | ₹20,000/year |
| 194B / Sp.1 | Lottery / games | 30% | ₹10,000 per transaction |
| 194M / Sp.6(ii) | Ind/HUF large contract/fees | 2% | ₹50 lakh/year |
Worked examples (FY 2026-27)
Professional fees just over the limit: You pay a consultant ₹60,000 in the year (single bill). Threshold ₹50,000/year. Rate 10%. TDS ₹6,000. Net ₹54,000. Without PAN, rate becomes 20% → TDS ₹12,000.
Contractor, yearly catch-up: A company has already paid a contractor ₹90,000 this FY and now pays ₹25,000 more (total ₹1,15,000). Single bill is under ₹30,000, but yearly total crosses ₹1,00,000, so 2% TDS applies on this ₹25,000 → TDS ₹500, plus you may need catch-up on earlier bills.
Rent by individual tenant (194-IB): Monthly rent ₹55,000. Rate 2%. TDS on that month ₹1,100. Deposit practice is typically for the last month of the year or tenancy via Form 26QC.
Property with higher stamp value: Agreement value ₹72 lakh, stamp duty value ₹80 lakh. Base ₹80 lakh. Rate 1%. TDS ₹80,000.
Purchase of goods (194Q): You already bought ₹40 lakh from a seller and now buy ₹20 lakh more (year total ₹60 lakh). TDS only on the ₹10 lakh excess over ₹50 lakh at 0.1% → TDS ₹1,000.
What this calculator deliberately skips
- Salary TDS (s.392 / old 192) — use the salary calculator.
- Non-resident payees, DTAA rates, Form 15CA/15CB.
- Lower or nil deduction certificates; Form 15G / 15H eligibility tests.
- TCS, online gaming net-winnings edge cases, and interest/penalty computations under s.201.
Wrong rates still circulate online (for example blogs still quoting 194-IB at 5% or 194M at 5%). Act 2025 tables use 2% for both of those rows — that is what this tool uses.
Related free tools
Estimate take-home pay with the salary calculator. For rent paperwork see the rent receipt generator and HRA calculator. Also useful: PF calculator, gratuity calculator, GST calculator, and all free calculators.
TDS calculator FAQ
What is TDS and when must I deduct it?
TDS (tax deducted at source) means you deduct income tax when you pay or credit certain sums, and deposit it with the government. Under the Income-tax Act 2025, salary TDS is in section 392 and most other common payments are in section 393. Deduct at the earlier of credit or payment.
Which financial year does this TDS calculator use?
FY 2026-27 (1 April 2026 to 31 March 2027). Rates and thresholds follow Income-tax Act 2025 section 393 for sums paid or credited on or after 1 April 2026. Old 1961 labels such as 194C still appear for familiarity with Form 26AS.
What happens if the payee does not give a valid PAN?
Section 397(2) requires a higher rate: generally 20%, or 5% for purchase of goods (table 8(ii)) and e-commerce (table 8(v)), if that is higher than the table rate. Lottery at 30% stays 30%.
Is salary TDS included in this tool?
No. Salary TDS is not a flat percentage; it depends on slabs, regime and declarations. Use the ScaleSaathi salary calculator for take-home and tax estimates. This tool covers common non-salary sections for SMB and contractor cases.
Do I add health and education cess on resident TDS?
For the resident payment types in this calculator, no. We do not add 4% cess or surcharge on these rows. Cess or surcharge can apply in some non-resident cases, which are out of scope here.
How is TDS on purchase of goods (194Q / Sl.8(ii)) calculated?
At 0.1% only on the amount paid or credited to a seller in the year that exceeds ₹50 lakh. Earlier payments under the limit are not taxed again; only the excess portion of the payment that crosses the limit is taxed.
When is rent TDS deducted by an individual tenant (194-IB)?
If monthly rent exceeds ₹50,000, the rate is 2% under Act 2025 Sl.2(i). Deduction is typically for the last month of the tax year or tenancy, with deposit via Form 26QC. The calculator shows TDS on the month you enter and explains the year-end practice.
Is this calculator free, and is my data stored?
Yes, it is free. All numbers stay in your browser. Nothing is uploaded to ScaleSaathi servers. There is no sign-up.
Sources (checked 23 October 2026, IST)
- Income Tax Department: Section 393 (Income-tax Act, 2025)
- ITD: Updated FAQs on interplay and transitions (s.392 / s.393)
- Press release: Income-tax Act 2025 in force from 1 April 2026
- FAQs on higher rate of TDS under section 397(2)
- ITD TDS rates page (cross-check; prefer s.393 for thresholds)
This calculator is for planning only. It is not tax advice. Your Form 26AS, AIS, TRACES filings and a qualified tax professional decide what you must deduct and deposit.