# TDS Calculator (Basic)

> TDS is tax the payer deducts before paying you, deposits with the government and reports quarterly. The rate depends on the type of payment — 10% for professional fees, 2% for technical services, 1% or 2% for contractors, 2% for commission — and applies only above annual or per-payment thresholds. If the payee hasn't given a PAN, TDS is generally 20%.

Interactive calculator: https://www.industax.com/calculators/tds

- **Professional fees:** 10% above ₹50,000
- **Contractors:** 1% individual / 2% others
- **No PAN:** 20% (or higher rate)

## Common TDS rates and thresholds (residents)

These rates continue under the Income-tax Act, 2025 from tax year 2026-27, which consolidates the TDS provisions into one table.

| Payment | Rate | Threshold |
| --- | --- | --- |
| Professional fees | 10% | ₹50,000 a year |
| Fees for technical services, call centres | 2% | ₹50,000 a year |
| Contract work — individual/HUF contractor | 1% | ₹30,000 single, ₹1 lakh a year |
| Contract work — others | 2% | ₹30,000 single, ₹1 lakh a year |
| Commission or brokerage | 2% | ₹20,000 a year |
| Rent — land, building, furniture (by businesses) | 10% | ₹50,000 a month |
| Rent — plant and machinery | 2% | ₹50,000 a month |
| Rent by individuals not under audit | 2% | ₹50,000 a month |
| Interest (other than banks) | 10% | ₹10,000 a year |
| Purchase of goods (large buyers) | 0.1% | ₹50 lakh a year per seller |
| Salary and commission to partners | 10% | ₹20,000 a year |

## Deductor's obligations

- Hold a TAN
- Deposit TDS by the 7th of the next month (30 April for March)
- File quarterly TDS returns and issue TDS certificates
- Interest at 1% or 1.5% a month for late deduction or deposit

## Worked example: paying a consultant

1. Consultancy fees of ₹1,20,000 in a year — above the ₹50,000 threshold.
2. TDS at 10% = ₹12,000; the consultant receives ₹1,08,000 (plus GST if charged, on which TDS isn't deducted when shown separately).
3. Deposit by the 7th of the next month and report in the quarterly return.

**Result:** TDS ₹12,000, which the consultant claims as credit in their ITR.

## FAQs

### Is TDS deducted on the GST component of an invoice?

No, if GST is shown separately on the invoice, TDS is deducted only on the amount excluding GST.

### Can I get TDS deducted at a lower rate?

Yes. A payee whose actual tax liability is lower can apply to the Assessing Officer for a lower or nil deduction certificate, which the payer then applies.

### What if TDS was deducted but not deposited by the payer?

You may not see the credit in Form 26AS/AIS. Ask the deductor to deposit and file the return; the deductor is liable for interest and penalties.

## Official sources

- incometaxindia.gov.in: https://www.incometaxindia.gov.in/

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Canonical page: https://www.industax.com/calculators/tds
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.