TDS Calculator — Section-wise Rates & Thresholds
Tax Deducted at Source (TDS) must be deducted by the payer at the time of credit or payment, whichever is earlier, whenever a payment crosses the threshold for its section. Choose the nature of payment, enter the amount and the earlier payments made to the same party in the financial year, and this calculator tells you whether TDS applies, at what rate, how much to deduct and the net amount payable to the deductee.
Key thresholds from 1 April 2025 (Finance Act 2025)
- 194C Contractors — single bill > ₹30,000 or aggregate > ₹1,00,000: 1% (individual/HUF), 2% (others)
- 194J Professional fees > ₹50,000: 10%; technical services: 2%
- 194I Rent > ₹50,000 per month: 10% (land/building), 2% (plant & machinery)
- 194H Commission > ₹20,000: 2%
- 194A Bank interest > ₹50,000 (₹1,00,000 for senior citizens): 10%
- 194Q Purchase of goods above ₹50 lakh: 0.1% on the excess
- 194T Partner remuneration > ₹20,000: 10% (new)
- 192 Salary — at the average rate of tax, no fixed percentage
Formula
TDS = Taxable amount × Rate ÷ 100. Where GST is separately shown on the invoice, deduct TDS on the amount excluding GST. If the deductee has not furnished a PAN, section 206AA requires deduction at the higher of the normal rate or 20% (5% for 194-O and 194Q).
Worked example
A hospital pays a consultant doctor ₹1,00,000 for professional services, with ₹30,000 already paid earlier in the year. Aggregate ₹1,30,000 exceeds the ₹50,000 threshold for 194J, so TDS = 1,00,000 × 10% = ₹10,000 and the doctor receives ₹90,000. Without PAN the deduction would be ₹20,000.
Compliance timeline
- Deposit TDS by the 7th of the following month (30 April for March deductions).
- File quarterly returns 24Q/26Q/27Q by 31 July, 31 October, 31 January and 31 May.
- Issue Form 16/16A within 15 days of filing the return.
Use the TDS Late Payment Interest Calculator if a deposit or return is delayed.
Frequently Asked Questions
Is TDS deducted on the GST component of an invoice?
No. CBDT Circular 23/2017 clarifies that where GST on services is indicated separately in the invoice, TDS is deducted on the amount excluding GST. The calculator has a checkbox to strip GST.
What is the TDS rate if the payee has no PAN?
Section 206AA requires deduction at the higher of the applicable rate or 20%. For 194-O and 194Q the higher rate is 5%. The payee also cannot claim the credit easily, so always collect PAN.
Do individuals have to deduct TDS on rent?
Individuals and HUFs not subject to tax audit must deduct TDS at 2% u/s 194-IB if monthly rent exceeds ₹50,000, once a year in the last month, using Form 26QC — no TAN required.
How is TDS on salary calculated?
Section 192 has no flat rate; the employer estimates the annual tax under the regime chosen by the employee (new regime by default) and deducts one-twelfth each month. Use the Income Tax Calculator for the annual figure.
What changed in TDS thresholds from April 2025?
Finance Act 2025 raised several thresholds — rent to ₹50,000 per month, professional fees to ₹50,000, commission to ₹20,000, bank interest to ₹50,000 (₹1 lakh for seniors), dividend and MF income to ₹10,000 — and introduced 194T for partner payments.
Disclaimer: This tool is for general information and estimation only. Tax rates and rules change — verify with official sources or a professional before acting. Read full disclaimer.