TDS Calculator

Calculate Tax Deducted at Source for FY 2025-26

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* If PAN is not available, TDS is deducted at 20%.

What is TDS (Tax Deducted at Source)?

TDS is a mechanism by the Income Tax Department where tax is collected at the very source of income. Any person or company making a payment like salary, rent, or professional fees is required to deduct a certain percentage before transferring the money to the receiver.

How to Calculate TDS?

Formula: $TDS\ Amount = Gross\ Payment \times TDS\ Rate$

  • Gross Payment: The total amount payable before tax.
  • TDS Rate: Depends on the Nature of Payment (Section) and PAN availability.
  • PAN Rule: Under Section 206AA, if the receiver doesn't provide PAN, tax is deducted at 20% or the applicable rate, whichever is higher.

Important TDS Threshold Limits

Nature of PaymentSectionThreshold Limit
Professional Fees194J₹30,000
Rent on Property194I₹2,40,000
Commission194H₹15,000
💡 Pro Tip: Always verify the Deductee's PAN status on the Income Tax portal. If the PAN is "Inoperative" (not linked to Aadhaar), the higher 20% rate might apply.