Legaldev has done in-depth research on various aspects of TDS so you can save taxes and plan your finances very well. This calculator works perfectly for Individuals, HUFs, Sole Proprietors and others. This tool is updated as per the latest TDS rates & regulations.
Find out exactly how much TDS to deduct on any payment — instantly, based on the recipient type, nature of payment, and whether PAN is available.
TDS, or Tax Deducted at Source, is the tax an entity making certain payments must deduct before paying the recipient, and deposit with the government on the recipient's behalf. This calculator works for individuals, HUFs, sole proprietors, companies, and other entities, and reflects current TDS rates and thresholds.
A TDS calculator tells you whether TDS applies to a particular payment and, if it does, exactly how much to deduct. It's useful both for the person deducting tax (the deductor) and for the person receiving payment (the deductee) who wants to verify that the right amount was withheld. Beyond the number itself, the calculator also points you to the specific TDS section and threshold that applies to your transaction.
The calculator estimates the TDS payable on a transaction using four inputs:
Based on these four inputs, it applies the correct rate and threshold and shows you the exact TDS amount to deduct.
If the recipient doesn't have a valid PAN, tax must be deducted at a higher rate — the higher of 20% or the rate otherwise applicable to that section, whichever results in more tax withheld. Beyond the higher deduction itself, the deductee may also find it harder to claim credit for the TDS, since payments made without a valid PAN don't get correctly reflected in the recipient's Form 26AS. It's worth double-checking PAN details before making a payment, purely to avoid this avoidable extra deduction.
From 1 April 2026, TDS provisions moved from the Income Tax Act, 1961 to the Income Tax Act, 2025. This is a structural change rather than a change in rates:
This calculator continues to use the familiar section names for ease of use, while calculating the correct rate as applicable for FY 2026-27 under the new framework.
These figures are indicative and vary by exact sub-category — always confirm the applicable rate and threshold for your specific transaction using the calculator above, since exact rates depend on payment sub-type and recipient category.
Without a valid PAN, TDS is deducted at a higher rate — 20% or the rate otherwise applicable, whichever is higher. This also makes it harder for the recipient to claim credit for the TDS, since it may not reflect correctly in their Form 26AS.
Salary TDS is deducted at the employee's average rate of income tax — calculated as the income tax payable on the estimated annual income (using applicable slab rates), divided by the employee's projected income for the financial year.
TDS deducted in a given month must generally be deposited by the 7th of the following month, and TDS deducted in March must be deposited by 30 April.
The provisions moved from the older 194-series sections to Section 392 (salary) and Section 393 (all other TDS payments) with numeric payment codes, effective 1 April 2026. Rates and thresholds are largely unchanged — the change is in numbering and reporting, not in the tax amount.
No. TDS applies only to specified categories of payment (salary, contractor payments, professional fees, rent, commission, interest, etc.) and only once the payment crosses the threshold specified for that category.
Yes. If the TDS deducted is more than your actual tax liability for the year, you can claim the excess as a refund when filing your income tax return.
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