Calculate TDS (Tax Deducted at Source) on common Indian payments — salary interest, professional fees, rent, contractor and commission payments — with the latest thresholds.
How TDS is calculated
TDS applies only when the annual payment crosses the section threshold. If the recipient has no PAN, Section 206AA applies a minimum 20% rate. Rates and thresholds reflect the latest Budget 2026 figures. Verify current rules on the income-tax portal before deducting.
Common TDS rates and thresholds (FY 2026-27)
From 1 April 2026 the Income-tax Act, 2025 replaced the old Act. TDS on salary now sits in section 392 and TDS on other payments in section 393, but the familiar rates and thresholds carried over. The old section numbers are shown for reference.
| Payment | Old section | Threshold | Rate |
|---|---|---|---|
| Bank / post office interest | 194A | ₹50,000 a year (₹1 lakh for senior citizens) | 10% |
| Rent on land or building (business payers) | 194-I | ₹50,000 a month | 10% |
| Rent paid by individuals not under audit | 194-IB | ₹50,000 a month | 2% |
| Professional fees | 194J | ₹50,000 a year | 10% |
| Contractor payments | 194C | ₹30,000 single / ₹1 lakh a year | 1% individuals/HUF, 2% others |
| Commission or brokerage | 194H | ₹20,000 a year | 2% |
| Dividends | 194 | ₹10,000 a year | 10% |
If the payee has not given a valid (operative) PAN, TDS is generally deducted at 20% or the normal rate, whichever is higher.
Worked examples
- A consultant billing ₹80,000 for a project: TDS 10% = ₹8,000; the consultant receives ₹72,000 and claims the ₹8,000 as a credit in their return.
- A salaried tenant paying ₹60,000 a month rent: TDS 2% = ₹1,200 a month, deposited with Form 26QC — see TDS on rent for tenants.
TDS is not the final tax
TDS is an advance credit. Your actual tax depends on your total income and slab, so you may owe more or get a refund when you file. Match TDS credits with Form 26AS and AIS before filing.
FAQs
How do I avoid TDS on FD interest?
If your total income is below the taxable limit, submit Form 15G (or 15H if you are 60+) — see our Form 15G/15H guide.
When must TDS be deposited?
Generally by the 7th of the following month (30 April for March deductions).
Figures last checked October 2026. Calculator results are estimates; actual lender, fund or tax outcomes can differ.