TDS Calculator

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TDS Calculator India — FY 2026-27

Calculate Tax Deducted at Source for salary, professional fees, rent, interest & more

Payment Amount₹1,00,000
TDS Applicable?Yes
TDS Rate10%
TDS Amount₹10,000
Net Payment to Recipient₹90,000
TDS Deposit Due Date7th of next month
Return FormForm 26Q
Net Payment
TDS

Why "No PAN = 20%" Is the Most Expensive Mistake in Indian Business Payments

Every TDS section in India has two rates: the normal rate (with PAN) and the "no PAN" rate (without PAN). The no-PAN rate is always 20% — regardless of what the normal rate is. A contractor who normally attracts 1% TDS suddenly becomes subject to 20% if they haven't shared their PAN with you. On a ₹5 lakh payment, that's ₹1 lakh deducted instead of ₹5,000. The contractor's cashflow takes a 20x hit. They can eventually recover it via their ITR, but the process takes 6-12 months. Always collect PAN from every vendor, contractor, and professional before making payments. One missing PAN can cause enormous friction in a business relationship.

Important: New TDS Framework from April 1, 2026

The Income Tax Act 2025 (effective April 1, 2026) has restructured all TDS provisions into 3 new sections — replacing the old 194-series of 30+ sections:

Old SectionNew Section (from Apr 2026)Payment Type
Section 192Section 392Salary TDS
194A, 194C, 194H, 194I, 194J, 194S, and 20+ othersSection 393All non-salary domestic TDS
All TCS provisionsSection 394Tax Collected at Source

Numeric payment codes (1001–1092) now replace section citations in challans and returns. This calculator shows old section numbers for reference — your ERP/payroll system must be updated for April 2026 compliance.

Key TDS Rates & Thresholds (FY 2026-27)

Payment TypeSectionRate (with PAN)Annual ThresholdNo-PAN Rate
Salary192/392As per income slabBasic exemption20%
Bank FD Interest194A10%₹40,000 (₹50,000 seniors)20%
Contractor (individual)194C1%₹30,000/payment or ₹1L/year20%
Contractor (company)194C2%Same as above20%
Professional fees (CA/Doctor/Lawyer)194J10%₹30,000/year20%
Technical services (IT/call centre)194J(a)2%₹30,000/year20%
Rent — Land/Building194I10%₹2,40,000/year20%
Commission / Brokerage194H5%₹15,000/year20%
Dividend19410%₹5,000/year20%
Partner remuneration (NEW)194T10%₹20,000/year20%
Crypto / VDA194S1%₹50,000/year (₹10k for specified)20%

TDS Compliance Calendar

ActivityDue Date
TDS deposit (April–February deductions)7th of the following month
TDS deposit (March deductions)30 April
Quarterly TDS Return — Q1 (Apr–Jun)31 July
Quarterly TDS Return — Q2 (Jul–Sep)31 October
Quarterly TDS Return — Q3 (Oct–Dec)31 January
Quarterly TDS Return — Q4 (Jan–Mar)31 May
TDS Certificate (Form 16/16A) issuance15 June (annually)
⚠️ Penalty for Late TDS: Interest at 1% per month (or part month) for late deduction, and 1.5% per month for late deposit after deduction. Late filing of TDS return: ₹200/day under Section 234E, capped at the TDS amount. Non-filing or incorrect return: penalty up to ₹1 lakh under Section 271H. These penalties accumulate fast — set calendar reminders for every 7th of the month.

FAQ

194J professional vs 194J technical — how do I decide?
The key test is whether the work is knowledge-based or execution-based. CA, doctor, lawyer, architect, consultant, interior decorator, advertiser = 10% professional rate. IT support, call centre, software technical services = 2% technical rate. Software development with design/architecture is typically 10% (professional). A grey area: specialized manufacturing. When in doubt, consult your CA — a wrong classification means 8% under-deduction, which can trigger a demand notice.
Can I get a Lower TDS Certificate to reduce deduction?
Yes. Under Section 197, recipients can apply to their jurisdictional assessing officer for a certificate authorising the deductor to deduct TDS at a lower rate or nil rate. This is useful when your actual tax liability is much lower than standard TDS rates would suggest — for example, if you have large business losses. The certificate must be presented to each payer before they make the payment.
What is Form 26AS and why does it matter?
Form 26AS is your annual tax statement available on the income tax portal — it shows all TDS deducted on your behalf by various payers and deposited with the government. When you file your ITR, the credit you claim for TDS must match exactly what appears in Form 26AS. If a payer deducted TDS but didn't deposit it or filed it incorrectly, your credit won't show up, and you'll have to pay the tax again (then chase the defaulter separately).
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