TDS calculator
Find whether TDS applies to a payment, at what rate, and how much to deduct, for contractors, professional fees, rent, commission, interest and purchase of goods.
What is TDS?
TDS (Tax Deducted at Source) means the payer cuts a part of certain payments as tax and pays it to the government on the payee’s behalf. The payee gets credit for it against their own income tax.
TDS rates and limits for businesses
| Section | Payment | Rate | No TDS up to |
|---|
| 194C | Contractor | 1% individual / HUF, 2% others | ₹30,000 one payment or ₹1,00,000 a year |
| 194J | Professional fees / technical services | 10% / 2% | ₹50,000 a year |
| 194H | Commission or brokerage | 2% | ₹20,000 a year |
| 194I | Rent: land, building / plant, machinery | 10% / 2% | ₹50,000 a month |
| 194IB | Rent paid by an individual not under audit | 2% | ₹50,000 a month |
| 194A | Interest other than bank interest | 10% | ₹10,000 a year |
| 194Q | Purchase of goods (buyer turnover over ₹10 crore) | 0.1% | ₹50 lakh a year (on the part above) |
Old section numbers shown. From 1 April 2026 the Income-tax Act, 2025 lists TDS in section 393.
How to use this TDS calculator
- Pick the payment type and who you are paying.
- Type this payment, without GST.
- For yearly limits, add the total paid to them this year, including this payment.
- Say whether they have given a PAN.
TDS and GST
When GST is shown separately on the bill, TDS is on the amount without GST.
Depositing TDS
Deposit the TDS by the 7th of the next month (30 April for March), file the quarterly TDS return, and give the payee a TDS certificate.
TDS
TDS = Amount × TDS rate ÷ 100, once the payment crosses the limit.
₹60,000 fees × 10% = ₹6,000No PAN
If the payee gives no PAN, TDS is at 20% (5% for purchase of goods).
Rates and limits as of November 2026. Tax rules change with each Budget; check the Income Tax Department’s site or your tax adviser before you deduct.
Billman deducts TDS on your bills automatically
On purchase bills and expenses, Billman applies the same sections, limits, catch-up and no-PAN rate as this calculator, keeps the TDS register and prepares the 26Q return.
TDS on purchase bills and expenses in Billman →Questions
TDS calculator FAQ
When is TDS deducted on contractor payments?
When one payment is over ₹30,000, or the total paid to the contractor in the year is over ₹1,00,000. The rate is 1% for an individual or HUF and 2% for others.
What is the TDS rate on professional fees?
10% for professional fees, 2% for technical services, once the year’s total is over ₹50,000.
What happens if the payee has no PAN?
TDS is at 20% (5% for purchase of goods under 194Q).
Is TDS on the amount with or without GST?
Without GST, when GST is shown separately on the bill.
When is TDS on rent deducted?
When the rent is over ₹50,000 a month: 10% for land and buildings, 2% for plant and machinery (194I), or 2% by individuals not under audit (194IB).
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