TDS Calculator — Section 194C, 194J, 194I & More (FY 2026-27)

Compute TDS for 194C, 194J, 194I, 194H and more.

Payment amount (₹)

Section

PAN status

Results

TDS amount: ₹2,000.00
Net payable to vendor: ₹98,000.00
Effective rate: 2%

Gross payment ₹1,00,000.00 at 2% (PAN on file).

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How TDS works

Tax Deducted at Source (TDS) is a mechanism under the Income Tax Act, 1961 where the payer (deductor) withholds tax from a payment to the payee (deductee) and deposits it directly with the government. The deductee receives the net amount and claims credit for the TDS in their income tax return.

Deductor: the business making the payment (e.g. you paying a vendor).
Deductee: the vendor, professional, contractor, or landlord receiving payment.
Deposit deadline: deposit TDS to the government by the 7th of the following month (30 April for March deductions).
Return filing: file Form 26Q quarterly to report all non-salary TDS deductions.

Common TDS sections & rates (FY 2026-27)

Rates below reflect the changes notified in the Finance (No. 2) Act 2024, effective from 1 October 2024. Most notably, Section 194H dropped from 5% to 2%, and Section 194J was split so that technical services, royalty (for film distribution), and call-centre payments now attract 2% under 194J(a), while professional services and non-compete fees remain at 10% under 194J(b).

194C — Contractor (individual/HUF): 1% on payments to a resident contractor who is an individual or HUF.
194C — Contractor (others): 2% on payments to companies, firms, LLPs, and other entities for contractual work.
194J(b) — Professional services: 10% on fees for legal, medical, engineering, accountancy, and other professional services.
194J(a) — Technical services / royalty / call centre: 2% (reduced from 10% w.e.f. 1 Oct 2024) on fees for technical services, royalty for film distribution, and call-centre operations.
194J(b) — Non-compete fees: 10% on payments made in consideration of any non-compete or exclusivity agreement.
194I — Rent of land/building: 10% on rent of land, building, or furniture.
194I — Rent of plant & machinery: 2% on rent of plant, machinery, or equipment.
194H — Commission/Brokerage: 2% (reduced from 5% w.e.f. 1 Oct 2024) on commission and brokerage payments.
194A — Interest (other than on securities): 10% on interest paid by businesses (e.g. on unsecured loans).
194Q — Purchase of goods >₹50L: 0.1% on the value of purchases from a resident seller exceeding ₹50 lakh in a financial year.

Section 206AA — No PAN

If the deductee does not furnish a valid PAN, Section 206AA requires the deductor to withhold tax at the higher of the applicable section rate or 20%. So a 194C payment that would otherwise attract 1% or 2% TDS is deducted at 20% in the absence of PAN. Toggle the “No PAN” option in the calculator above to see the adjusted rate applied.

Frequently asked questions

How is TDS calculated?

TDS is calculated as a fixed percentage of the gross payment to the deductee, based on the section that applies to the nature of the payment. For example, a ₹1,00,000 payment to a contractor (other than individual/HUF) under Section 194C attracts TDS at 2%, i.e. ₹2,000. The net amount paid to the vendor is the gross amount minus TDS, and the TDS itself must be deposited with the government by the deductor.

What if the vendor doesn't provide PAN?

Under Section 206AA of the Income Tax Act, if the deductee fails to furnish a valid PAN, TDS must be deducted at the higher of the applicable section rate or 20%. So a 194C payment that would normally attract 1% or 2% TDS is deducted at 20% if no PAN is available.

When should TDS be deposited?

TDS deducted in a given month must be deposited with the government by the 7th of the following month (with the exception of March, where the due date is 30 April). The deductor must also file Form 26Q quarterly, summarising all TDS deductions made under non-salary sections.

Is TDS deducted on GST component?

No. As clarified by CBDT circular, TDS under Chapter XVII-B is to be deducted on the amount paid or payable without including the GST component, provided the GST is shown separately on the invoice. If GST is not shown separately, TDS applies on the entire invoice value.