TDS Calculator
TDS Calculator India 2026
Tax Deducted at Source Calculator under Income Tax Act, 2025 (Sections 392, 393)
TDS (Tax Deducted at Source): TDS (Tax Deducted at Source) is a mechanism under the Income Tax Act, 2025 where the payer deducts tax before making specified payments. Under the new Act, TDS is consolidated into Section 392 (salary) and Section 393 (all non-salary payments — rent, interest, professional fees, commission, contractor payments, crypto/VDA, online gaming, etc.). TDS rates range from 0.1% to 30% depending on the nature of payment. Form 130 replaces Form 16, and Form 131 replaces Form 16A.
Source: Income Tax Act, 2025 - Sections 392, 393, 394
📊 TDS Statistics India 2025-26
TDS Calculator: Enter Payment Details
Use our TDS calculator to compute the Tax Deducted at Source on various payments like salary, rent, professional fees, contractor payments, interest, dividends, online gaming, crypto/VDA, and more under the Income Tax Act, 2025.
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TDS Computation
Key TDS Sections Under Income Tax Act, 2025
Section 392 (old 192): TDS on Salary
- TDS calculated based on applicable income tax slab
- Employer considers all salary components, declared deductions
- Basic exemption: ₹3L (New Regime, FY 2026-27)
- Employer issues Form 130 annually (replaces Form 16)
Section 393 (old 194A): TDS on Interest
- TDS at 10% on interest (FD, RD, loans)
- Threshold: ₹50,000 (₹1,00,000 for senior citizens)
- Other sources threshold: ₹10,000
- Submit Form 15G/15H to avoid TDS
Section 393 (old 194C): TDS on Contractor
- 1% for Individual/HUF, 2% for others
- Threshold: ₹30,000 (single) / ₹1L (annual)
- Covers advertising, catering, manufacturing, etc.
- Manpower supply also covered at same rates
Section 393 (old 194I): TDS on Rent
- 10% for land/building, 2% for plant/machinery
- Monthly threshold: ₹50,000/month
- Includes rent for furniture, fittings, and equipment
- Individuals/HUFs not under tax audit exempt
TDS Rates Chart FY 2026-27: All Sections (Income Tax Act, 2025)
| New Section (Old Section) | Nature of Payment | TDS Rate | Threshold (₹) |
|---|---|---|---|
| 392 (old 192) | Salary | As per slab | Basic exemption (₹3L New) |
| 392 (old 192A) | PF Withdrawal (before 5 yrs) | 10% | 50,000 |
| 393 (old 194A) | Interest - Bank/Post Office | 10% | 50,000 / 1,00,000 (Seniors) |
| 393 (old 194A) | Interest - Other Sources | 10% | 10,000 |
| 393 (old 194) | Dividend | 10% | 10,000 |
| 393 (old 194C) | Contractor Payment | 1% / 2% | 30,000 (single) / 1L (annual) |
| 393 (old 194I) | Rent - Land/Building | 10% | 50,000 / month |
| 393 (old 194I) | Rent - Plant/Machinery | 2% | 50,000 / month |
| 393 (old 194J) | Professional/Technical Fees | 10% / 2% | 50,000 (annual) |
| 393 (old 194H) | Commission/Brokerage | 2% | 20,000 |
| 393 (old 194-IA) | Immovable Property Sale | 1% | 50,00,000 |
| 393 (old 194Q) | Purchase of Goods (>₹10Cr turnover) | 0.1% | 50,00,000 |
| 393 (old 194B) | Lottery/Game Winnings | 30% | 10,000 |
| 393 (old 194BA) | Online Gaming Winnings | 30% | No threshold |
| 393 (old 194S) | Crypto/VDA Transfer | 1% | 50,000 / 10,000 |
| 393 (old 194T) | Payment to Partners | 10% | 20,000 |
| 393 (old 194R) | Perquisite/Benefit | 10% | 20,000 (annual) |
| PAN Not Available | All Payment Types | 20% | N/A |
Understanding TDS (Tax Deducted at Source) Under Income Tax Act, 2025
Tax Deducted at Source, commonly known as TDS, is one of the most important mechanisms for tax collection in India. Under the newly enacted Income Tax Act, 2025 (effective from April 1, 2026 for FY 2026-27), TDS ensures that tax is collected at the source of income rather than at a later date. This systematic approach helps the government maintain a steady flow of revenue throughout the year while reducing the burden on taxpayers who might otherwise face a large tax bill at year-end.
A New Simplified TDS Framework: 30+ Sections Consolidated Into 3
One of the most significant reforms under the Income Tax Act, 2025 is the complete restructuring of the TDS framework. The old Act (Income Tax Act, 1961) had over 30 different TDS sections, each governing a specific type of payment — Section 192 for salary, Section 194A for interest, Section 194C for contractors, Section 194H for commission, and so on. The new Act has consolidated all TDS provisions into just 3 sections: Section 392 (TDS on Salary), Section 393 (TDS on all non-salary payments — replacing 194A, 194B, 194BA, 194C, 194D, 194DA, 194H, 194I, 194J, 194N, 194O, 194Q, 194R, 194S, 194T, and 20+ other sections), and Section 394 (Tax Collected at Source). This simplification makes compliance easier while introducing new payment types like online gaming winnings and crypto/VDA transfers.
How TDS Works: A Comprehensive Overview
When a person (deductor) makes a specified payment to another person (deductee), they are required to deduct a certain percentage of tax before making the payment. This deducted amount is then deposited with the government within the prescribed timeframe. The deductee can claim this TDS amount as tax credit when filing their Income Tax Return (ITR). The beauty of the TDS system lies in its ability to spread tax collection throughout the year, ensuring better compliance and reducing the possibility of tax evasion.
For example, when an employer pays salary to an employee, they calculate the estimated annual tax liability based on the employee's income, declared investments, and applicable deductions. The employer then deducts a proportionate amount every month as TDS. Similarly, when a bank pays interest on fixed deposits, it deducts TDS if the interest exceeds the threshold limit. This mechanism applies to various types of payments including salary, interest, commission, rent, professional fees, contractor payments, online gaming winnings, crypto transfers, and more.
Section 392 (old Section 192): TDS on Salary
Section 392 of the Income Tax Act, 2025 (replacing Section 192 of the old Act) governs TDS deduction on salary income. Unlike other TDS provisions, Section 392 doesn't specify a fixed rate — instead, TDS is calculated based on the employee's applicable income tax slab. Employers must consider all components of salary, applicable deductions, and any other income declared by the employee. The basic exemption limit of ₹3 lakh under the New Tax Regime (FY 2026-27) serves as the threshold. Employers now issue Form 130 (replacing Form 16) annually, detailing the TDS deducted, which employees use to claim credit while filing ITR. The quarterly salary TDS return is now Form 138 (replacing Form 24Q).
Section 393 (old Section 194A): TDS on Interest
Section 393 of the Income Tax Act, 2025 (replacing Section 194A of the old Act) mandates TDS deduction on interest payments other than interest on securities. This includes interest on fixed deposits, recurring deposits, and loans. Banks and financial institutions deduct TDS at 10% when interest income exceeds ₹50,000 in a financial year (₹1,00,000 for senior citizens) — a significant increase from the old thresholds of ₹40,000 and ₹50,000 respectively. For other sources of interest, the threshold is ₹10,000. Taxpayers can avoid this deduction by submitting Form 15G (below 60 years) or Form 15H (senior citizens) if their total income is below the taxable limit.
Section 393 (old Section 194C): TDS on Contractor Payments
Section 393 of the Income Tax Act, 2025 (replacing Section 194C of the old Act) applies to payments made to contractors for carrying out work. The TDS rate is 1% for individual/HUF contractors and 2% for others. The threshold limit is ₹30,000 for a single payment or ₹1 lakh aggregate in a financial year. This section covers advertising, broadcasting, carriage of goods, catering, manufacturing, manpower supply, and various other services. It's important to note that this doesn't apply to payments made to transporters who own 10 or more goods carriages.
Section 393 (old Section 194I): TDS on Rent
Section 393 of the Income Tax Act, 2025 (replacing Section 194I of the old Act) governs TDS on rent payments. For rent of plant and machinery, the TDS rate is 2%, while for land and building rent, it's 10%. Under the new Act, the threshold has been changed from ₹2.4 lakh per annum to ₹50,000 per month, making it easier to track and apply. Individuals and HUFs not subject to tax audit continue to be exempt from deducting TDS on rent.
Section 393 (old Section 194J): TDS on Professional and Technical Services
Section 393 of the Income Tax Act, 2025 (replacing Section 194J of the old Act) covers TDS on fees for professional or technical services. The standard rate is 10% (2% for technical/call center services) with an increased threshold of ₹50,000 per financial year (up from ₹30,000 under the old Act). Professional services include legal, medical, engineering, architectural, accounting, interior decoration, and consulting services. Technical services encompass providing technical knowledge, experience, or expertise.
New TDS Types Under Income Tax Act, 2025
The Income Tax Act, 2025 has introduced several new TDS provisions consolidated under Section 393. Notable additions include TDS on online gaming winnings at 30% (no threshold — every payout is subject to TDS), TDS on crypto/VDA transfers at 1% (threshold ₹50,000 or ₹10,000 for specified persons), and TDS on purchase of goods at 0.1% for buyers with turnover exceeding ₹10 crore (threshold ₹50 lakh). Additionally, MACT (Motor Accident Claims Tribunal) interest is now fully exempt from TDS under the new Act.
Form 26AS: Your TDS Credit Statement
Form 26AS is an annual consolidated tax statement that shows all taxes deducted and deposited against your PAN. It includes TDS deducted by employers, banks, and other deductors; TCS (Tax Collected at Source); advance tax payments; self-assessment tax; and refund details. Accessing Form 26AS is essential before filing your ITR to ensure all TDS credits are accurately claimed. The form is available for download from the Income Tax e-filing portal (incometax.gov.in) and can also be accessed via net banking if your bank is registered with the tax department.
Since FY 2021-22, Form 26AS has been enhanced to include the Annual Information Statement (AIS), which provides comprehensive details of high-value transactions, foreign travel, share transactions, and other financial activities. This integration helps taxpayers verify all their income sources and ensure accurate tax filing.
TDS Certificates: Form 130 and Form 131 (New Under Income Tax Act, 2025)
TDS certificates serve as proof of tax deducted at source. Under the new Income Tax Act, 2025, Form 130 replaces the old Form 16 and is issued by employers for TDS deducted on salary. Form 131 replaces the old Form 16A and is issued for non-salary TDS deductions. These certificates contain details of TDS deducted, deposited, and the deductor's TAN. The quarterly salary TDS return is now Form 138 (replacing Form 24Q). Always cross-verify the information in these certificates with Form 26AS to ensure accuracy before filing your ITR.
Lower or Nil TDS Deduction
If your total income is below the taxable limit or you expect your actual tax liability to be lower than the TDS being deducted, you can apply for a lower or nil TDS certificate. The application is made online through the Income Tax portal. After verification, the assessing officer issues a certificate specifying the rate at which TDS should be deducted. This certificate must be submitted to the deductor, who will then deduct TDS at the specified lower rate or not deduct at all. This is particularly useful for senior citizens with interest income or professionals whose annual income falls below the taxable threshold.
"Many taxpayers miss TDS credits because they don't verify Form 26AS before filing ITR. Always cross-check TDS certificates (Form 16/16A) with Form 26AS to claim full credit."
Frequently Asked Questions about TDS
Find answers to common questions about tds calculator. These FAQs are designed to help you understand key concepts and make informed decisions.
1. How do I check my TDS credit?
Download Form 26AS from the Income Tax e-filing portal to see all TDS deducted against your PAN. You can also check your AIS (Annual Information Statement) for detailed TDS information. Both are available free of cost on incometax.gov.in.
2. Can I claim lower or nil TDS deduction?
Yes, apply for a Lower/Nil TDS certificate under Section 397 of the Income Tax Act, 2025 through the Income Tax portal if your total income is below taxable limit or you expect lower tax liability. Submit the certificate to the deductor to get TDS at lower/nil rate.
3. What if TDS is deducted but not reflected in Form 26AS?
Contact the deductor to verify if they have filed the TDS return and deposited the TDS. They may have made an error in quoting your PAN. You can raise a grievance on the Income Tax portal. The deductor is legally required to issue Form 130 (salary) or Form 131 (non-salary).
4. What is Form 15G and Form 15H?
Form 15G (for individuals below 60) and Form 15H (for senior citizens) are declarations to avoid TDS on interest income if your total income is below taxable limit. Submit these forms to banks at the beginning of each financial year.
5. What is the TDS rate on salary?
TDS on salary is deducted under Section 392 of the Income Tax Act, 2025 at your applicable income tax slab rate, not a fixed percentage. The employer calculates your estimated annual income, deductions, and tax liability to determine monthly TDS. Provide investment proofs to reduce TDS. The employer issues Form 130 (replaces Form 16).
6. What are the new TDS sections under the Income Tax Act, 2025?
The Income Tax Act, 2025 has consolidated 30+ TDS sections into three main sections: Section 392 (TDS on salary, replaces Section 192), Section 393 (TDS on non-salary payments such as rent, professional fees, contractor payments, interest, commission, crypto, gaming — replaces Sections 194A-194Q), and Section 394 (Tax Collected at Source, replaces Section 206C).
7. Is TDS applicable on cryptocurrency and online gaming?
Yes, under the Income Tax Act, 2025, TDS on virtual digital assets (crypto) and online gaming winnings is covered under Section 393. TDS on crypto transfers is 1% above ₹10,000 per transaction, and TDS on online gaming winnings is 30% above ₹100 per game. These were previously under Sections 194S and 194BA respectively.
8. What is the TDS rate on FD interest?
Under Section 393 of the Income Tax Act, 2025, banks deduct TDS at 10% on FD interest exceeding ₹40,000 per year (₹50,000 for senior citizens). Submit Form 15G/15H to avoid TDS if your total income is below the taxable limit.
This TDS calculator is for informational and educational purposes only. The calculations are based on TDS rates applicable for Tax Year 2026-27 (FY 2026-27) as per the Income Tax Act, 2025. The new Act has consolidated 30+ TDS sections into Sections 392, 393, and 394. TDS rates and threshold limits may be revised by the government through notifications or budget announcements. Always refer to the official Income Tax portal (incometax.gov.in) for the latest rates and rules. This tool should not be considered as professional tax advice. Consult a qualified Chartered Accountant or tax professional for specific guidance related to your TDS obligations.