Threshold-aware TDS for salary, contractors, professionals, rent, interest, commission, purchases, partner payments and more, with deposit due dates and late-deposit interest.
| Old Section | New Act reference | Nature of payment | Rate | Rate without PAN | Threshold |
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From 1 April 2026 the Income-tax Act, 2025 replaces the 1961 Act. Salary TDS sits in Section 392 and all other TDS in Section 393 (residents, non-residents, any person). "Assessment Year" becomes "Tax Year".
194A bank interest ₹50,000 (₹1 lakh senior citizens); 194J ₹50,000; 194H and 194D ₹20,000; rent ₹50,000 a month (₹6 lakh a year); 194LA ₹5 lakh; 194K and dividend ₹10,000.
Firms must deduct 10% TDS on salary, remuneration, commission, bonus and interest paid to partners when the total exceeds ₹20,000 in the year.
Supply of manpower is now explicitly treated as "work" under the contractor provision (old 194C), so 1% / 2% TDS applies to manpower invoices.
Rates already cut from Oct 2024: 194H 2%, 194G 2%, 194D 2% (non-company), 194M 2%, 194DA 2%, 194-O 0.1%. The higher "specified person" rate (Section 206AB) was removed from 1 April 2025.
New regime default: slabs to 24 lakh, standard deduction ₹75,000 and a ₹60,000 rebate that makes income up to ₹12 lakh tax-free. The salary TDS certificate is Form 130 (earlier Form 16).
The TDS Calculator above works out Tax Deducted at Source for the most common payments and applies the monetary thresholds, PAN rules, GST adjustment and deposit deadlines that apply from 1 April 2026.
TDS is a way of collecting income tax at the point where income arises. The payer (deductor) deducts tax when a payment is made or credited, whichever is earlier, and deposits it with the government. The payee claims credit through Form 26AS / AIS while filing the return.
The 194-series is retired for transactions from 1 April 2026. Salary is covered by Section 392, while payments to residents, non-residents and "any person" are set out in three tables in Section 393. For example, old Section 194C now appears at Section 393(1), serial 6(i), and old 194J at serial 6(iii). This calculator shows both references so that you can map your books and returns easily.
TDS must be deposited by the 7th of the next month (30 April for March deductions). For property purchase, rent by individuals and Section 194M, tax is deposited within 30 days from the end of the month of deduction. Quarterly TDS statements are due on 31 July, 31 October, 31 January and 31 May. If TDS is deducted but deposited late, interest runs at 1.5% for every month or part of a month.
No. TDS provisions moved to Sections 392 and 393 from 1 April 2026, but the Income Tax Department has said that the rates and monetary thresholds for all categories of payments were retained. The thresholds that did change were those revised by the Finance Act 2025.
For transactions from 1 April 2026, returns and certificates should use the new Section 393 references and payment codes. Old section numbers remain useful for comparison and for transactions up to 31 March 2026.
The deductor faces interest at 1% per month from the date tax was deductible until it is deducted, disallowance of 30% of the expense, and possible penalty equal to the tax not deducted. The corresponding provisions continue in the 2025 Act.
Interest at 1.5% per month or part of a month applies from the date of deduction to the date of deposit, along with a late filing fee and possible penalty and prosecution.
If GST is shown separately in the invoice, TDS on contractor payments, fees, commission, rent and purchases is deducted on the amount excluding GST. If GST is not shown separately, TDS applies to the total amount.
The higher of the normal rate, the rate in force and 20% applies (5% for Sections 194Q and 194-O). A PAN that is inoperative because it is not linked to Aadhaar is treated in the same way. The old higher-rate rule for non-filers (Section 206AB) was removed from 1 April 2025.
Under the Income-tax Rules, 2026 the salary TDS certificate is Form 130. Certificates for non-salary payments and the quarterly statements also carry new form numbers (the unified statement is Form 121). Check the e-filing portal for the current forms.
Log in to the Income Tax e-filing portal and view Form 26AS or the Annual Information Statement (AIS), which list TDS deposited against the PAN.
Yes, payments to non-residents are covered by a separate table in Section 393(2) (earlier Section 195 and related sections) and may be reduced by tax treaties. This calculator is for payments to residents.