TDS Calculator (Income-tax Act 2025)
Does TDS apply, at what rate, and how much — under the new Act and the 1961 Act.
Tax Year 2026-27 Income-tax Act, 2025 · payments to residents · Sources
TDS rate chart for payments to residents
For a business payer and a payee with PAN. FY 2025-26 had the same rates and thresholds under the 1961-Act sections, except for interest on motor accident awards (₹50,000 for everyone) and life insurance payouts (₹1 lakh or more).
| Payment | 2025 Act | 1961 Act | Rate | Threshold |
|---|---|---|---|---|
| Rent — land, building, flat, furniture or fittings | 393(1), Table Sl. No. 2(ii)(b) | 194-I(b) | 10% (land, building, furniture or fittings) | Rent of more than ₹50,000 for a month or part of a month. |
| Rent — plant, machinery or equipment | 393(1), Table Sl. No. 2(ii)(a) | 194-I(a) | 2% (plant, machinery or equipment) | Rent of more than ₹50,000 for a month or part of a month. |
| Contract work, labour or manpower supply (contractor) | 393(1), Table Sl. No. 6(i) | 194C | 1% (individual or HUF) or 2% (others) | A single payment of more than ₹30,000, or more than ₹1,00,000 in the year to this contractor. |
| Professional fees — doctor, lawyer, CA, architect, consultant | 393(1), Table Sl. No. 6(iii) | 194J | 10% (professional services) | More than ₹50,000 in the year to this payee. |
| Fees for technical services | 393(1), Table Sl. No. 6(iii) | 194J | 2% (technical services) | More than ₹50,000 in the year to this payee. |
| Royalty | 393(1), Table Sl. No. 6(iii) | 194J | 10% (2% for film distribution royalty) | More than ₹50,000 in the year to this payee. |
| Director’s sitting fees or commission (not salary) | 393(1), Table Sl. No. 6(iii) | 194J(1)(ba) | 10% | No threshold — TDS on every payment. |
| Commission or brokerage (not insurance) | 393(1), Table Sl. No. 1(ii) | 194H | 2% | More than ₹20,000 in the year to this payee. |
| Insurance commission to an agent | 393(1), Table Sl. No. 1(i) | 194D | 2% (10% to a domestic company) | More than ₹20,000 in the year to this agent. |
| Commission on selling lottery tickets | 393(3), Table Sl. No. 4 | 194G | 2% | More than ₹20,000 in the year. |
| Salary, interest, commission or bonus to a partner (by the firm) | 393(3), Table Sl. No. 7 | 194T | 10% | More than ₹20,000 in the year to this partner. |
| Interest on a bank, co-operative bank or post office deposit | 393(1), Table Sl. No. 5(ii) | 194A | 10% (rates in force) | More than ₹50,000 of interest in the year from this bank or post office — ₹1,00,000 for a senior citizen. |
| Interest on bonds, debentures or government securities | 393(1), Table Sl. No. 5(i) | 193 | 10% (rates in force) | More than ₹10,000 of interest in the year. |
| Interest on a loan or deposit with a company, NBFC or firm | 393(1), Table Sl. No. 5(iii) | 194A | 10% (rates in force) | More than ₹10,000 of interest in the year. |
| Interest on a motor accident claims (MACT) award | 393(1), Table Sl. No. 5(iii) | 194A | 10% (rates in force) | No TDS for an individual. For others, more than ₹50,000 in the year. |
| Dividend from an Indian company | 393(1), Table Sl. No. 7 | 194 | 10% | No threshold, except that an individual paid other than in cash gets dividends of up to ₹10,000 a year without TDS. |
| Income from mutual fund units (IDCW payout) | 393(1), Table Sl. No. 4(i) | 194K | 10% | More than ₹10,000 in the year from this fund house. |
| Income from REIT or InvIT units | 393(1), Table Sl. No. 4(ii) | 194LBA | 10% | No threshold. |
| Taxable payout from a life insurance policy | 393(1), Table Sl. No. 8(i) | 194DA | 2% of the income in the payout | Payouts of more than ₹1,00,000 in the year. |
| EPF withdrawal before 5 years of service | 392(7) | 192A | 10% | Withdrawals of ₹50,000 or more. |
| Buying a house, flat or plot from a resident | 393(1), Table Sl. No. 3(i) | 194-IA | 1% of the price or the stamp duty value, whichever is higher | The price or the stamp duty value is ₹50 lakh or more (all buyers and sellers together). |
| Money paid under a joint development agreement | 393(1), Table Sl. No. 3(ii) | 194-IC | 10% | No threshold. |
| Compensation for compulsory acquisition of land | 393(1), Table Sl. No. 3(iii) | 194LA | 10% | More than ₹5,00,000 in the year. |
| Buying goods worth over ₹50 lakh a year from a seller | 393(1), Table Sl. No. 8(ii) | 194Q | 0.1% of the amount above ₹50 lakh | Only on purchases from this seller above ₹50 lakh in the year. |
| E-commerce operator paying a seller on its platform | 393(1), Table Sl. No. 8(v) | 194-O | 0.1% of the gross amount | No threshold, except for individual or HUF sellers with gross sales of up to ₹5 lakh in the year who gave their PAN or Aadhaar. |
| Buying crypto or another virtual digital asset | 393(1), Table Sl. No. 8(vi) | 194S | 1% | More than ₹10,000 in the year — ₹50,000 when the buyer is an individual or HUF below the turnover limits or with no business income. |
| Benefit or perquisite given to a business contact | 393(1), Table Sl. No. 8(iv) | 194R | 10% of the value | More than ₹20,000 in the year to this person. |
| Winnings from a lottery, puzzle, card game or betting | 393(3), Table Sl. No. 1 | 194B | 30% (rates in force) | More than ₹10,000 in a single transaction. |
| Net winnings from online games | 393(3), Table Sl. No. 2 | 194BA | 30% of net winnings (rates in force) | No threshold — on net winnings at each withdrawal and at the end of the year. |
| Winnings from a horse race | 393(3), Table Sl. No. 3 | 194BB | 30% (rates in force) | More than ₹10,000 in a single transaction. |
| Contract work, professional fees or commission paid by an individual or HUF not covered above | 393(1), Table Sl. No. 6(ii) | 194M | 2% | More than ₹50 lakh in the year to this payee. |
| Rent paid by an individual or HUF not covered above (deducted once a year) | 393(1), Table Sl. No. 2(i) | 194-IB | 2% | Rent of more than ₹50,000 for a month or part of a month. |
Rules used and official sources
- Income-tax Act, 2025 — sections 392(7), 393, 395, 397 and 402
- Finance Act, 2026 — section 84 (amendments to section 393), section 3(17) and First Schedule Part II (rates in force)
- Income-tax Rules, 2026 — rule 211 (Form No. 121), rule 213 (Form No. 128) and rule 218 (payment, Form No. 141)
- Memorandum to the Finance Bill, 2025 — TDS thresholds for FY 2025-26 and omission of section 206AB
Tax rules and rates change. This calculator follows the rules described on this page and may not cover every situation. Check the official source or a qualified tax professional before filing or invoicing.
About the TDS Calculator (Income-tax Act 2025)
TDS on payments to residents comes from the tables in section 393 of the Income-tax Act, 2025 instead of sections 193 to 194T of the 1961 Act. The rates and thresholds mostly carried over; the section numbers did not. This calculator works out, for one payment, whether TDS applies, the threshold, the rate, the TDS and the net amount — and shows the new section next to the old one, so you can use it for Tax Year 2026-27 and for FY 2025-26 payments.
It covers rent, contracts, professional and technical fees, royalty, commission, insurance commission, payments to partners, interest, dividends, mutual fund and REIT income, insurance and EPF payouts, property purchases, purchases of goods, e-commerce, crypto, business perquisites and winnings. It applies the yearly thresholds (including catching up on earlier payments once a threshold is crossed), the exemptions in section 393(4), nil-tax declarations, lower-deduction certificates and the higher rate without a PAN. Nothing you enter leaves your browser.
How to use it
- Choose the year: Tax Year 2026-27 for payments from 1 April 2026, or FY 2025-26 for payments in the year before (1961 Act).
- Pick what is being paid, and enter the amount. For rent, enter one month’s rent and the months in the year.
- Say who pays and who receives. A company, firm or trust deducts most kinds of TDS; an individual or HUF only if last year’s turnover was above ₹1 crore (₹50 lakh for a profession), with separate rules for rent and for large payments.
- For a yearly threshold, add what you already paid the same payee this year, and the TDS deducted on it. Tick the boxes that apply — no PAN, a nil-tax declaration, a senior citizen, a certificate rate.
- Read the TDS, the rate, the net payment and both section numbers. Copy the summary or download it as CSV; the rate chart below lists every payment type.
Examples
TDS ₹5,500 — 10% on the whole ₹55,000, because the ₹50,000 yearly threshold is crossed with this payment (s.393(1) Sl. 6(iii); was 194J)
TDS ₹14,400 (2% of ₹7,20,000), deducted once from the March rent: you pay the landlord ₹45,600 that month (s.393(1) Sl. 2(i); was 194-IB)
Without the landlord’s PAN the TDS would be 20%, but never more than one month’s rent — ₹60,000.
Each buyer paying ₹40 lakh deducts ₹45,000 — 1% of the higher stamp duty value, on their share (s.393(1) Sl. 3(i); was 194-IA)
No TDS: the threshold for senior citizens is ₹1,00,000 a year from the same bank (₹50,000 for others)
TDS ₹1,050: the year’s ₹1,05,000 crosses ₹1,00,000, so 1% is due on the earlier ₹80,000 as well (s.393(1) Sl. 6(i); was 194C)
How the calculator decides
- The provision. The kind of payment, the payer and the payee decide the table entry. Many entries apply only when the payer is a “specified person” — anyone other than an individual or HUF, or an individual or HUF whose business turnover exceeded ₹1 crore (professional receipts ₹50 lakh) in the previous year (section 402(37)). Individuals and HUFs below that skip most business payments, but they do deduct on rent above ₹50,000 a month (Sl. No. 2(i)), property purchases (Sl. No. 3(i)), crypto (Sl. No. 8(vi)), and contract work, professional fees and commission above ₹50 lakh a year (Sl. No. 6(ii)) — besides the entries that apply to any payer, such as winnings and insurance commission.
- Exemptions in section 393(4) — for example savings-account interest, small transporters, dividends of up to ₹10,000 paid by bank transfer, and small e-commerce sellers.
- Declarations. For interest, dividends, mutual fund income, rent, insurance commission, insurance payouts and EPF, a resident individual whose tax will be nil can give Form No. 121 (Form 15G or 15H for FY 2025-26) and receive the money without TDS (section 393(6)).
- The threshold, per payee and year unless it is per transaction or per month. Once the year’s total crosses it, TDS is due on the whole amount, including the earlier payments.
- The rate: the table rate, the rate on a lower-deduction certificate (section 395), or — without a valid PAN — the higher of the rate and 20% (5% for purchases of goods and e-commerce), under section 397(2). TDS on payments to residents carries no surcharge or cess.
What changed from 1 April 2026
The Income-tax Act, 2025 moved TDS into three tables — section 393(1) for payments to residents, 393(2) for non-residents and 393(3) for payments to any person, such as winnings — and the old section numbers no longer apply to payments from 1 April 2026. Form 15G and 15H became the single Form No. 121 (rule 211 of the Income-tax Rules, 2026), and payers without a TAN (rent by individuals, property, Sl. No. 6(ii) payments and crypto) use Form No. 141 instead of Forms 26QB, 26QC, 26QD and 26QE.
The Finance Act, 2026 added a few changes: interest on a motor accident claims award paid to an individual has no TDS at all (TDS used to apply above ₹50,000 a year), supplying manpower to work under the client’s supervision now counts as “work” for contractor TDS, and the ₹50 lakh test for property purchases was corrected to refer to Sl. No. 3(i). The thresholds raised in April 2025 — ₹50,000 for professional fees, ₹20,000 for commission, ₹50,000 a month for rent, ₹10,000 for dividends and fund income, ₹50,000 (₹1 lakh for seniors) for bank interest — carry on.
Depositing the TDS
TDS deducted in a month is paid to the government by the 7th of the next month, and TDS deducted in March by 30 April (rule 218 of the Income-tax Rules, 2026; rule 30 of the 1962 Rules for FY 2025-26). TDS on rent paid by individuals, on property purchases, on Sl. No. 6(ii) payments and on crypto is paid within 30 days from the end of the month with the challan-cum-statement. The payee sees it in their tax credit statement and claims it in their return.
Sources
Income-tax Act, 2025 sections 392(7), 393, 395, 397 and 402; Finance Act, 2026 section 84 (amendments to section 393), section 3(17) and First Schedule Part II (the rates in force: 10% on interest, 30% on winnings, 2% on insurance commission); Income-tax Rules, 2026 rules 211, 213 and 218; and, for FY 2025-26, the Memorandum to the Finance Bill, 2025, which set the current thresholds from 1 April 2025 and removed the higher rate for non-filers (section 206AB).
Limitations
- Payments to residents only. Payments to non-residents fall under section 393(2) (195 of the 1961 Act), at the rates in force with surcharge and cess, and often on the income part only — get advice.
- TDS on salary (section 392; 192) depends on the employee’s whole tax for the year: use the salary calculator or the income tax calculator.
- TCS (tax collected by sellers), cash withdrawals from banks and the less common payments — non-compete fees, call-centre fees, investment and securitisation funds, National Savings Scheme withdrawals — are not covered.
- The calculator trusts what you tick: whether a payee is a specified person, whether a declaration is valid, whether a payout is taxable. A wrong tick gives a wrong answer.
- TDS is shown to the paisa. Round it the way your accounting software or the challan does.
Privacy
Everything happens in your browser. What you enter or open here is not uploaded or stored by MySmartCoPilot.
Frequently asked questions
What are the new TDS sections from 1 April 2026?
TDS on payments to residents is in the Table in section 393(1) of the Income-tax Act, 2025 — for example Sl. No. 2 for rent (was 194-I and 194-IB), 3(i) for property (194-IA), 5 for interest (193 and 194A), 6 for contracts and fees (194C, 194J, 194M), 7 for dividends (194) and 8(vi) for crypto (194S). Winnings and partner payments are in section 393(3). The rate chart on this page maps every one.
Did the TDS rates change in 2026-27?
Mostly not: the Income-tax Act, 2025 carried over the rates and the thresholds raised from 1 April 2025. The changes are no TDS on motor accident award interest paid to individuals, manpower supply counting as contract work, and new form numbers (Form No. 121 for nil-tax declarations, Form No. 141 for payers without a TAN).
Do I have to deduct TDS on the rent I pay for my home?
Only if the rent is more than ₹50,000 a month. A salaried person — or any individual or HUF whose business turnover last year was ₹1 crore or less (₹50 lakh for a profession) — then deducts 2% once a year — from the rent for March or the last month of the tenancy — on the whole year’s rent, and pays it with Form No. 141 without needing a TAN. Above those turnover limits the rent is taxed like a business payment instead: 10% of each month’s rent (Sl. No. 2(ii)), even for your own home.
What is the TDS rate if the payee has no PAN?
The higher of the normal rate and 20% (section 397(2); 206AA of the 1961 Act), or 5% for purchases of goods and e-commerce payments. For rent paid by individuals it is capped at one month’s rent. Without a PAN, nil-tax declarations and lower-deduction certificates are not valid.
When is TDS due on an earlier payment that was below the threshold?
When the year’s total crosses a yearly threshold, TDS is due on the whole amount — so the payment that crosses it carries TDS on the earlier payments too. For contractors there are two tests: a single payment above ₹30,000, or more than ₹1,00,000 in the year.
Is GST included in the amount for TDS?
Where GST is shown separately on the invoice, TDS is worked out on the amount before GST, following a CBDT circular under the 1961 Act (Circular 23/2017). Enter the amount without GST in that case.