📋 TDS Rates as per Income Tax Act — All Payment Types
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India 2026
Calculate TDS on salary, FD interest, rent, professional fees, contractor, and commission payments. Instant result with applicable section and rate.
TDS Rates by Section — FY 2025-26
| Payment Type | Section | TDS Rate (with PAN) | TDS Rate (no PAN) | Threshold |
|---|
| Salary | 192 | As per slab | As per slab (min 20%) | Above exemption limit |
| FD / Bank Interest | 194A | 10% | 20% | >₹40,000 (₹50,000 for seniors) |
| Contractor (Individual/HUF) | 194C | 1% | 20% | >₹30,000 (single) or ₹1L (annual) |
| Contractor (Company) | 194C | 2% | 20% | >₹30,000 (single) or ₹1L (annual) |
| Professional Fees | 194J | 10% | 20% | >₹30,000/year |
| Rent (Land/Building) | 194I | 10% | 20% | >₹2,40,000/year |
| Commission / Brokerage | 194H | 5% | 20% | >₹15,000/year |
How TDS Works — Key Points
- Deductor's responsibility: The person making the payment (employer, bank, company) is the deductor. They must deduct TDS before paying and deposit it with the government.
- TDS certificate: The deductor must issue Form 16 (for salary) or Form 16A (for non-salary) as proof of TDS deduction.
- Claiming TDS credit: TDS deducted reflects in your Form 26AS and AIS. You can claim it as advance tax credit when filing your ITR.
- Form 15G / 15H: If your total income is below the taxable limit, submit Form 15G (individuals below 60) or Form 15H (senior citizens) to the bank/deductor to avoid TDS deduction.
- No PAN penalty: If the deductee does not furnish PAN, TDS is deducted at the higher of: the applicable TDS rate, 20%, or the rate in force.
- TAN number: Anyone required to deduct TDS must have a Tax Deduction Account Number (TAN) issued by the Income Tax Department.
📊 Note: TDS is not the final tax. It is an advance collection. If excess TDS is deducted, you can claim a refund by filing your ITR. Use our Income Tax Calculator to estimate your total tax liability.
Frequently Asked Questions
What is the difference between TDS and income tax?
TDS is a mechanism for advance collection of income tax at the source of payment. It does not replace income tax — it is simply a prepayment. If TDS deducted exceeds your actual tax liability, you get a refund. If it's less, you need to pay the balance as self-assessment tax when filing your ITR.
When is TDS deposited with the government?
TDS must be deposited by the 7th of the following month (e.g., TDS deducted in April must be deposited by May 7th). For March, the deadline is April 30th. Late deposit attracts interest at 1.5% per month. TDS returns (Form 24Q for salary, 26Q for others) must be filed quarterly.
Can TDS be avoided on FD interest?
Yes, if your total income is below the basic exemption limit, you can submit Form 15G (below 60 years) or Form 15H (senior citizens above 60) to your bank at the start of each financial year. The bank will then not deduct TDS. However, this does not mean the interest is tax-free — you still need to declare it in your ITR and pay tax if applicable.
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CalcBharat.com Finance Team
Tax & Compliance Experts
TDS rates as per Income Tax Act applicable for FY 2025-26 (AY 2026-27). Rates are subject to change by the Finance Act. Always verify with a tax professional for complex cases. Last updated: April 2026.