TDS Calculator

TDS (tax deducted at source) is income tax collected in advance: the payer withholds a percentage of certain payments — interest, rent, contractor fees, commission, professional fees — and deposits it with the government against the payee's PAN. It is not an additional tax; the deducted amount is credited against the payee's final income-tax liability when they file their return, and any excess is refunded.

Under §194I, as this calculator applies for FY 2026-27, TDS on rent is 10% for land, building or furniture and 2% for plant and machinery, once total rent exceeds ₹6,00,000 in a year — a threshold raised from ₹2,40,000 by Budget 2025, effective FY 2025-26. This section covers payers liable to tax audit; individual tenants paying above ₹50,000 a month fall under a separate section (§194-IB) instead.

Without a PAN, TDS is deducted at the higher of the section's normal rate and 20%. A contractor payment normally deducted at 1% or 2% is deducted at 20% instead, and interest normally at 10% is also deducted at 20%. The deduction is also harder to claim as credit, since it cannot be mapped to the payee in Form 26AS without a PAN.

Yes — every TDS section has a threshold, and the basis differs by section. For FY 2026-27: ₹50,000 a year for interest under §194A (₹1,00,000 for senior citizens), ₹30,000 per payment for contractors under §194C, ₹20,000 a year for commission under §194H, ₹6,00,000 a year for rent under §194I, and ₹50,000 a year for professional fees under §194J. Below the threshold the full amount is paid without deduction.

Yes. The Income Tax Act 2025 renumbered sections, so the familiar §194A, §194C, §194H, §194I and §194J labels formally map to new section numbers. The rates and thresholds carried over. Calculators and TDS charts — including this one — generally keep the old §194x labels because that is what deductors and payees recognise from decades of use.