Free tool
TDS Calculator
Work out tax deducted at source on the payments businesses make most, updated for FY 2026-27 and section 393 of the Income-tax Act, 2025. Thresholds and the higher no-PAN rate are applied automatically.
Result
- Section (old Act)
- —
- Applicable rate
- —
- TDS to deduct
- ₹0.00
- Net payable to payee
- ₹0.00
Indicative rates for FY 2026–27. From 1 April 2026 these payments fall under section 393 of the Income-tax Act, 2025; the old section numbers are shown because that is how most people still look them up. Special cases (non-residents, lower-deduction certificates, surcharge and cess) aren’t covered. Confirm anything material before you deduct.
How TDS works
Tax deducted at source shifts collection to the point of payment. When you pay a contractor, a consultant or your landlord, you withhold a percentage, pay the balance, and deposit what you withheld with the government against the payee’s PAN. They claim it back as credit when they file.
Getting it wrong is expensive in two directions
- Deduct too little and you’re liable for the shortfall plus interest — and the corresponding expense can be disallowed, which costs you more than the TDS itself.
- Deduct too much and you’ve needlessly squeezed a supplier’s cash flow and created a refund they’ll chase you about.
The three questions to settle every time
- Which section applies? Driven by the nature of the payment, not the payee’s job title. A “consultant” invoicing for a works contract may fall under 194C, not 194J.
- Has the threshold been crossed? Some sections have both a single-payment and an annual aggregate limit; the aggregate catches people out late in the year.
- Is there a PAN? Without one, you deduct at the higher of 20% or the normal rate (5% for purchases of goods).
New to the 2025 Act? Our guide to TDS under the Income-tax Act, 2025 covers the new form numbers and which Act applies to a payment.
If TDS is a monthly scramble, our GST and TDS compliance service runs the computation, the challans and the quarterly returns on a tracked calendar.
TDS calculator — common questions
How is TDS calculated?
TDS is a percentage of the payment made, deducted at source by the payer before releasing the balance. Identify the section that fits the nature of the payment, apply the prescribed rate to the amount (usually excluding GST, where GST is shown separately on the invoice), and deposit the deduction with the government by the due date.
Is TDS deducted on the amount including GST?
No — where GST is shown separately on the invoice, TDS is deducted on the value excluding GST. If the invoice does not separate the GST component, TDS applies to the whole invoice value. This calculator lets you enter the base amount so the deduction is computed correctly.
What happens if the payee has no PAN?
If the payee does not furnish a PAN, you deduct at the higher of the normal rate or 20%. For purchases of goods the floor is 5% rather than 20%. This was section 206AA under the 1961 Act and carries into the Income-tax Act, 2025. The calculator applies it when you answer No to the PAN question.
What are the TDS thresholds?
Each section has its own threshold below which no deduction is required — for example a per-contract and an annual aggregate limit under 194C, and a monthly limit for rent under 194I. If your payment is below the threshold shown, no TDS arises, though the aggregate for the year still needs watching.
When does TDS have to be deposited?
Generally by the 7th of the following month, except for deductions made in March, which are due by 30 April. A quarterly TDS statement follows each quarter. Late deposit attracts interest, and a late statement attracts a daily fee.
What is section 393 of the Income-tax Act, 2025?
The Income-tax Act, 2025 replaced the 1961 Act from 1 April 2026. Section 393 brings the old 194-series of TDS sections (194C, 194J, 194I, 194H, 194A, 194Q and the rest) into one section, with each type of payment listed in a table. It applies wherever the earlier of credit or payment falls on or after 1 April 2026. For the payments in this calculator the rates and thresholds carried over unchanged; what changed is the section reference on your challans and statements.
How does TDS on purchase of goods work?
The buyer deducts 0.1% on purchases from a single seller once they pass ₹50 lakh in the year, and only on the amount above ₹50 lakh. It applies only if the buyer’s turnover exceeded ₹10 crore in the previous year. If the seller has no PAN, the rate is 5%. Enter the year’s total purchases from that seller and the calculator deducts on the excess.
Serving businesses across India
TDS and GST handled on a calendar.
Computation, challans, quarterly returns and reconciliation — with due dates tracked ahead of time instead of chased on the day.
Delivered within 24 working hours, or next month is on us. 24 working hours from the moment we have your complete data. The clock runs Monday to Saturday and pauses on Sundays and public holidays. Terms