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TDS Calculator

Estimate tax deducted at source for common Indian payments using the applicable tax year and transaction details.

Indian TDS Withholding Income Tax Act, 2025 (Tax Year 2026-27)
Transaction Date & Tax Law Earlier of Credit or Payment
From 1-Apr-2026: Income Tax Act, 2025 applies
Separate Credit & Payment Dates? Earlier date dictates statute
Payment Nature & TDS Category Section 393 / Legacy 194
Is Payee's Valid PAN Available? Non-furnishing mandates 20% higher withholding under Section 404 (legacy Sec 206AA)
Has Lower / Nil Deduction Certificate? Issued by Income Tax Assessing Officer under Section 402 / 197
Payment Valuation Gross Invoice / Payout
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₹0 ₹2.5L ₹5L ₹10L
Presets:
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Helps check whether current transaction breaches the annual aggregate threshold.
TDS Calculation Summary Tax Year 2026-27
TDS Deducted
₹0
TDS Rate: 0%
Net Payable Amount
₹0
Effective: 0.00%
Calculating TDS...

Statutory Rule Reference Card
Statutory Framework Income Tax Act, 2025
Statutory Reference Section 393(1), Table 1, Sl. No. 6
Gross Value ₹0
Applicability & Threshold Note:
Loading threshold rules...
TDS vs Final Income Tax Liability TDS is tax deducted at source and represents an interim withholding credit. Your final income tax liability depends on your total annual income, tax regime slabs, and deductions. Check Final Tax on Income Tax Calculator →
Step-by-Step Withholding Calculation Ledger
Calculation Step / Metric Computed Value
Statutory Withholding Guide

TDS Calculator

Estimate Tax Deducted at Source (TDS), net vendor payouts, and gross-up invoices for Tax Year 2026-27 under the Income Tax Act, 2025 and legacy provisions of the Income Tax Act, 1961.

Income Tax Act, 2025 Transition

For payments or credits on or after 1 April 2026, the Income Tax Act, 2025 comes into force. Section 393 consolidates non-salary withholding into standardized tabular items (e.g. Table 1 for resident payments), replacing fragmented 194-series sections.

Section 404 / 206AA PAN Rules

If the payee fails to furnish a valid Permanent Account Number (PAN), tax must be withheld at the higher of the statutory rate or 20% under Section 404 of the 2025 Act (legacy Section 206AA), with a 5% rate for specified purchase of goods.

Single vs Aggregate Limits

Thresholds vary by transaction type: contractors trigger TDS if a single payment exceeds ₹30,000 or annual aggregate exceeds ₹1,00,000; rent triggers at ₹6,00,000/yr; professional services trigger at ₹50,000/yr.

Statutory TDS Rates & Thresholds Reference

Nature of Payment Act 2025 Reference Legacy 1961 Section Standard Rate Statutory Threshold
Contractors (Individual/HUF) Sec 393(1), Table 1, Sl. 6 Sec 194C 1.0% ₹30,000 / ₹1,00,000
Contractors (Company/Firm) Sec 393(1), Table 1, Sl. 6 Sec 194C 2.0% ₹30,000 / ₹1,00,000
Professional Fees Sec 393(1), Table 1 Sec 194J 10.0% ₹50,000 / year
Technical Services & Royalty Sec 393(1), Table 1 Sec 194J 2.0% ₹50,000 / year
Rent: Land, Building & Furniture Sec 393(1), Table 1 Sec 194I 10.0% ₹6,00,000 / year
Rent: Plant & Machinery Sec 393(1), Table 1 Sec 194I 2.0% ₹6,00,000 / year
Rent by Individual/HUF Tenant Sec 393(1), Table 1 Sec 194-IB 2.0% ₹50,000 / month
Bank Interest (General) Sec 393(1), Table 1 Sec 194A 10.0% ₹50,000 / year
Bank Interest (Senior Citizens) Sec 393(1), Table 1 Sec 194A 10.0% ₹1,00,000 / year
Transfer of Immovable Property Sec 393(1), Table 1 Sec 194-IA 1.0% ₹50,00,000 value
Purchase of Goods (Specified Buyer) Sec 393(1), Table 1, Sl. 8 Sec 194Q 0.1% Excess over ₹50 Lakhs
Salary Income Withholding Section 392 Section 192 Slab Rate Basic Exemption Limit

Formula Reference

Formula

TDS Formula

Tax Deducted at Source (TDS) is a mechanism where the person responsible for making specific payments deducts income tax before re...

TDS Compliance

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Understanding TDS Rules, Thresholds and Compliance

01

How TDS Is Calculated on Commercial Transactions

Tax Deducted at Source is computed as Applicable TDS Base multiplied by the Prescribed Rate. The net payable amount transferred to the deductee is Gross Amount minus TDS. The payer deposits the withheld tax to the Central Government by the 7th of the following month and files quarterly returns in Form 26Q or Form 24Q.

02

Earlier of Credit or Payment Rule

Under Indian tax statutes, TDS liability arises at the point when the payee's account is credited in the books of accounts or when payment is made by cash, cheque, or electronic transfer, whichever is earlier. This date also determines whether the transaction is governed by the Income Tax Act, 2025 or the legacy 1961 Act.

03

Gross-Up Mathematical Formula

When commercial agreements mandate a specific net take-home receipt for a service provider, the gross billing value must be calculated using: Gross Amount = Desired Net Payout / (1 - TDS Rate). For example, to deliver ₹90,000 net under a 10% TDS section, the required gross invoice is ₹90,000 / 0.90 = ₹1,00,000.

04

TDS Credit vs Final Income Tax Assessment

TDS is an interim withholding mechanism, not the deductee's final income tax obligation. When filing the annual income tax return (ITR), all income streams are aggregated and taxed under the applicable regime slabs. TDS deducted appears in Form 26AS and AIS/TIS and is credited against total tax liability, resulting in a balance tax payable or a tax refund.

Good to know

Questions, answered

Quick answers about how this tool works.

Tax Deducted at Source (TDS) is a system introduced by the Indian Income Tax Department where tax is collected at the point of origin of income. The person (deductor) responsible for making specific payments (like salary, rent, commission, professional fees) must deduct a specified percentage of tax before making the payment and deposit it with the government.

TDS is calculated by identifying the nature of payment (section under Income Tax Act), verifying if the aggregate payments exceed the specified threshold limit, determining the payee category, checking if a valid PAN is available, and applying the applicable tax rate to the gross payment amount.

If the payee fails to furnish a valid Permanent Account Number (PAN), the deductor is required to deduct TDS at a higher rate under Section 206AA. This rate is generally a flat 20% (except for certain specific transactions where other rules may apply).

The threshold limit is the exemption limit below which no TDS needs to be deducted. If the total payment in a financial year is below the threshold, TDS is 0%. However, once the aggregate payment exceeds the threshold, TDS is deducted on the total amount paid, not just the portion exceeding the threshold.

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