How the TDS Calculator Works
Pick what the payment is for, such as professional fees, rent or contractor work. Then choose who is receiving the money. The calculator picks the right rate and the right limit for you.
Enter the amount you are paying. If GST is shown separately on the bill, leave it out. If you have already paid this person earlier this year, add that total too, because most limits look at the full year.
If the amount is above the limit, the calculator shows the TDS and the amount left to pay. If the person has not given a PAN, the rate is at least 20%.
Formula Used
TDS is a simple percentage of the payment:
TDS = Payment × TDS Rate ÷ 100- PaymentThe amount you are paying, without GST if GST is shown separately on the bill
- TDS RateThe rate for that type of payment. It becomes 20% if the person has no PAN and the normal rate is lower
- LimitTDS starts only when payments go above this amount. For example, ₹50,000 in a year for professional fees, or ₹50,000 in a month for rent
Example Calculation
You pay a consultant ₹1,00,000 as fees. The consultant is an individual and has given you a PAN. You have not paid this person anything else this year.
- Payment is forProfessional fees
- Amount₹1,00,000
- Person receiving itIndividual, PAN given
- ResultTDS is ₹10,000 (10%). You pay the consultant ₹90,000 and send ₹10,000 to the government.
Important Assumptions
- This calculator is for payments to people and businesses in India. It does not cover TDS on salary, which depends on tax slabs. Use the Salary and Income Tax calculators for that. Payments to people outside India follow different rules.
- It assumes you are the kind of payer who has to deduct TDS. For example, an individual or HUF who does not need a tax audit usually does not deduct TDS on contractor, commission, professional fees or rent. Some separate rules still apply to them, such as TDS on rent above ₹50,000 a month.
- The rates and limits are for FY 2026-27. Section numbers like 194J are the older, well-known numbers. From 1 April 2026, TDS rules are under Section 393 of the new Income-tax Act, 2025.
- Rent is checked month by month. If one month's rent is more than ₹50,000, TDS applies to that whole month's rent. For other payments, the limit is checked on the total paid to the person in the year.
- When one payment takes the total above the limit, the calculator charges TDS on everything paid so far. It assumes you did not deduct TDS on the earlier smaller payments.
- No extra surcharge or cess is added. The TDS amount is rounded to the nearest rupee.
- Rules and limits change from time to time. Please check the latest rules or ask a tax professional before you deduct or deposit TDS.