Calculate Tax Deducted at Source on interest, rent, professional fees, commission, and more — FY 2025-26 rates and thresholds for India.
Select Nature of Payment & Enter Amount
Choose the applicable TDS section, enter the payment amount, and click Calculate TDS.
A TDS calculator (Tax Deducted at Source calculator) works out exactly how much tax an Indian payer must withhold before making a payment — and how much the recipient actually gets. NeftCal's TDS calculator covers 15+ common payment categories using FY 2025-26 rates and thresholds, including interest, rent, professional fees, commission, contractor payments, dividend, and property purchase, so whether you need a Section 194A TDS on interest, Section 194C TDS to a contractor, Section 194J TDS on professional fees, Section 194-I TDS on rent, Section 194Q TDS on goods purchases, or Section 194-IA TDS on property, the same tool handles it.
Select the applicable section, enter the payment amount, and specify whether the payee's PAN is available. This TDS on interest calculator — and every other section it supports — checks your amount against that section's threshold for the financial year, applies the standard rate if the payment qualifies, or raises the rate for TDS without PAN to at least 20% under Section 206AA if no PAN is furnished. It then shows the TDS amount and the net payment after deduction, so you always know how tax deducted at source affects the final payout.
Businesses and accounts payable teams deducting TDS on vendor and contractor bills, landlords and tenants working out TDS on rent above the threshold, freelancers and professionals checking what they'll actually receive after a client deducts TDS, chartered accountants sanity-checking a client's compliance, and property buyers calculating the 1% TDS due on a high-value purchase.
Under-deducting or missing a TDS deduction can trigger interest charges, a penalty, and disallowance of the expense in the payer's own tax computation, while over-deducting ties up the payee's cash until they claim a refund at filing time. Getting the section, rate, and threshold right the first time — especially after the rate and threshold changes introduced for FY 2025-26 — keeps both payer and payee compliant and avoids year-end reconciliation headaches. This matters most for high-frequency deductors, since even a small error repeated across many Section 194A, 194C, or 194J payments can add up to a significant compliance gap.
Common TDS sections, rates, and thresholds, as used by this calculator. Rates reflect Budget 2025 changes — always verify with the Income Tax Department before filing.
| Section | Nature of Payment | Threshold | Rate |
|---|
The exact rule set this calculator applies for every section
From payment type to net payout in under a minute
Choose the applicable TDS section from the dropdown — interest, rent, professional fees, commission, contractor payment, property purchase, dividend, and more.
Input the gross amount before TDS deduction for this specific payment.
Select Yes or No for whether the deductee has furnished a valid PAN — this determines whether Section 206AA's higher rate applies.
Check the standard rate and threshold shown for your selected section before calculating, or use the custom rate/threshold fields for an uncovered case.
See the TDS amount, net payment, full breakdown, and a PAN vs no-PAN rate comparison chart instantly.
A step-by-step FY 2025-26 calculation for a consultant's invoice
A company pays a management consultant a professional fee of ₹80,000 for the year. The consultant has furnished a valid PAN.
No-PAN comparison: If the same consultant had not furnished a PAN, Section 206AA would force the rate up to the higher of the standard rate or 20% — in this case 20%. TDS would then be ₹80,000 × 20 ÷ 100 = ₹16,000, leaving a net payment of only ₹64,000 — ₹8,000 less than with PAN on file. This ₹8,000 difference illustrates exactly why furnishing PAN matters to the payee's cash flow, even though the deducted amount is later available as credit against their final tax liability.
What the TDS rate applied to your payment roughly tells you
The effective TDS rate on a payment is a quick way to gauge how much of a bill is withheld before it reaches the payee. These bands are general reference points across the sections this calculator covers, not an official Income Tax Department benchmark.
| Effective TDS Rate | General Read | Typical Context |
|---|---|---|
| 0.1% – 2% | Low withholding | Contractor payments (194C), rent on plant/machinery, property purchase (194-IA), goods purchase (194Q) |
| 5% – 10% | Standard withholding | Interest (194A), professional fees (194J), rent on land/building (194-I), dividend |
| 20% or higher | High / penal withholding | No-PAN rate under Section 206AA, or high-rate categories like lottery winnings (194B, 30%) |
For payers: a high effective rate on a payment usually means either the category is inherently high-rate (winnings, no-PAN cases) or PAN hasn't been furnished — worth double-checking before finalizing the payment, since a missing PAN is often the simplest fix.
For payees: TDS deducted is not lost money — it's advance tax credited to your account, visible in Form 26AS and the Annual Information Statement (AIS), and adjustable against your final liability when you file your Income Tax Return. If your total TDS exceeds your actual tax due, the excess is refunded.
Risk considerations: this calculator does not track cumulative threshold aggregation across the financial year, non-filer surcharge under Section 206AB, or TDS on salary or non-resident payments — treat the result as a single-transaction estimate, not a full compliance check.
This tool provides general TDS estimates for educational purposes only and does not constitute personalized tax or legal advice. TDS rules, thresholds, and exemptions can change and vary by specific circumstance — confirm the applicable section, rate, and threshold with the official Income Tax Department portal (incometax.gov.in), CBDT circulars, or a chartered accountant before deducting or filing.
Where this calculator earns its keep
Tax Deducted at Source requires the payer to withhold a percentage of tax before making certain payments and deposit it with the government on the recipient's behalf.
Under Section 206AA, a missing PAN forces TDS up to the higher of the normal rate or 20% — sometimes far more than the standard rate.
TDS deducted appears in Form 26AS and the Annual Information Statement (AIS); claim it as a credit — or refund — when filing your ITR.
Work out TDS on contractor or supplier invoices under Section 194C before releasing payment.
Check whether rent under Section 194-I has crossed the FY 2025-26 threshold and what to withhold.
Calculate the 1% TDS due under Section 194-IA on a property purchase above ₹50 lakh.
Work out TDS on dividend distributions above the ₹10,000 threshold for FY 2025-26.
Freelancers can check exactly how much a client will withhold before quoting a net fee.
Estimate TDS on FD/RD interest under Section 194A, and check Form 15G/15H eligibility to avoid it.
Finance teams can quickly verify the correct section, rate, and threshold before processing a batch of vendor payments.
Check TDS on commission or brokerage payments under Section 194H at the current 2% rate.
Use the custom rate and threshold fields for sections not in the preset list.
What this TDS calculator does well, and where it can't replace professional advice
Three ways tax reaches the government before or at filing — how TDS fits into the bigger picture
| Feature | TDS | Advance Tax | Self-Assessment Tax |
|---|---|---|---|
| Who pays | Payer, on the payee's behalf | Taxpayer directly | Taxpayer directly |
| When | At the time of payment | Quarterly during the financial year | Before filing the return |
| Basis | Flat rate on a specific payment | Estimated total annual tax liability | Shortfall after TDS and advance tax |
| Applies to | Interest, rent, fees, contractor payments, etc. | Taxpayers with tax liability above ₹10,000/year | Anyone with a remaining balance due |
| Credit shown in | Form 26AS / AIS | Form 26AS / AIS | Form 26AS / AIS (as self-assessment challan) |
Common questions about TDS
Official guidance to complement this calculator — not a substitute for licensed tax advice
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