Transaction Details
Standard rate applied as PAN is provided.
TDS to Deduct
₹10,000
Net Payout
₹90,000
TDS Calculation Result
Applicable TDS Rate
Threshold
₹30,000
TDS is Applicable
Payment exceeds the exemption limit. Deducting tax is mandatory.
This calculator uses current Indian Income Tax Act provisions for TDS calculation across different sections.
TDS Rates Chart for FY 2025-26
A quick reference for different payment types under the Income Tax Act.
| Section | Nature of Payment | Rate (%) | Threshold (₹) |
|---|---|---|---|
| 194I | Rent (Bldg) | 10% | 2,40,000 |
| 194J | Professional Fees | 10% | 30,000 |
| 194H | Commission | 5% | 15,000 |
| 194C | Contractors | 1% / 2% | 30,000 |
| 194A | Interest | 10% | 40,000 |
| 194Q | Purchase Goods | 0.1% | 50,00,000 |
When is TDS Applicable?
TDS is applicable when a payment made in a single transaction or a financial year exceeds the specified exemption threshold. For example, if you pay more than ₹30,000 to a software developer, Section 194J requires you to deduct TDS at 2% or 10%.
Ensure you check your Income Tax slabs and Advance Tax due dates, as TDS is a form of prepayment that can be adjusted against your final tax bill. For high-value transactions like Capital Gains or tax-loss harvesting, TDS compliance becomes even more critical for corporate and individual payers.
How to Claim TDS Refund?
If the TDS deducted from your income is more than your actual tax liability, you can claim a TDS Refund by filing your Income Tax Return (ITR). Here is the process:
- Form 26AS: Verify all TDS credits in your Form 26AS/AIS portal.
- ITR Filing: File your ITR before the July 31st deadline and compute your total tax.
- Refund Process: If 'Tax Paid' > 'Tax Liability', the IT Department will process a refund to your bank account after assessment.
Investors using SIP or CAGR strategies should monitor their Form 26AS quarterly to ensure no tax credit is missed.
Understanding TDS in India
Tax Deducted at Source (TDS) is a mechanism introduced by the Indian Income Tax Department to collect tax at the very source of income. Under this system, the person responsible for making a payment (deductor) is required to deduct a certain percentage of tax before making the payment to the receiver (deductee).
In the 2026 financial ecosystem, TDS plays a vital role in preventing tax evasion. For the payer, it is a compliance requirement to deposit this tax with the government and issue a **TDS Certificate (Form 16 or 16A)**. For the receiver, the TDS amount appears in their **Form 26AS** and can be adjusted against their final tax liability while filing ITR.
Importance of PAN in TDS
Providing a Permanent Account Number (PAN) is critical. Under **Section 206AA**, if a deductee does not furnish their PAN to the deductor, the tax must be deducted at either the rate specified in the Act or at **20%**, whichever is higher. Our calculator allows you to toggle this to see the drastic impact of missing PAN on your cash flow.