What are TDS rates for FY 2026-27?

TDS rates: Salary (192) - as per slab, Interest (194A) - 10%, Rent land/building (194I) - 10%, Rent P&M (194I) - 2%, Professional fees (194J) - 10%, Contractor (194C) - 1% individual/2% company. Without PAN, rate is 20% or higher.

What is TDS threshold limit?

TDS thresholds FY 2026-27: Interest (194A) - ₹40,000 (₹50,000 seniors), Rent (194I) - ₹2.4L/year, Professional fees (194J) - ₹30,000, Contractor (194C) - ₹30,000 single/₹1L aggregate. Below threshold, no TDS required.

What is Form 15G and 15H?

Form 15G: Declaration by individuals below 60 years if total income is below taxable limit - no TDS on interest. Form 15H: For senior citizens (60+) with no tax liability. Submit to bank/payer before payment to avoid TDS.

When is TDS to be deposited?

TDS deposit due dates: Government deductors - same day. Non-government: By 7th of next month. For March: By April 30. Interest on late deposit: 1.5% per month. Failure to deduct: 1% per month from deduction due date.

What is TDS on salary?

TDS on salary (Section 192): Employer deducts tax at average rate based on estimated annual salary and declared investments (80C, 80D, HRA). No threshold - TDS applies if salary is taxable. Employer issues Form 16 by June 15.

What is Section 194A TDS on interest?

Section 194A: TDS on interest (other than securities) - 10% if interest exceeds ₹40,000/year (₹50,000 for seniors). Applies to: FD interest, RD interest, loan interest. Not applicable: Savings account interest, cooperative banks.

Section 194I - TDS on rent: Land/building/furniture: 10%, Plant & machinery: 2%. Threshold: ₹2.4L per year to same landlord. Section 194IB: Individuals paying rent > ₹50K/month deduct 5% TDS in last month (if not covered under 194I).

What is TDS if payee has no PAN?

Without PAN, TDS is deducted at higher rate: 20% or specified rate, whichever is higher. This is per Section 206AA. Exception: Form 15G/15H declarations are invalid without PAN. Payer must collect PAN from all payees.

How to claim TDS refund?

To claim TDS refund: File ITR, declare all income, mention TDS deducted (reflects in Form 26AS/AIS). If TDS exceeds tax liability, refund is credited to bank account. Process takes 2-6 months. Track refund status on income tax portal.

What is lower TDS certificate?

If TDS rate seems too high for your income, apply for lower/nil TDS certificate (Section 197). Apply on TRACES portal with income estimate and tax computation. Valid for one FY. Common for: freelancers, contractors, interest income where tax liability is lower than TDS.

Home/Calculators/TDS Calculator•Last updated: June 13, 2026

TDS Calculator

FY 2026-27 Rates

Calculate Tax Deducted at Source on salary, interest, rent, professional fees, and contractor payments. Covers all major TDS sections with accurate thresholds.

₹1.00L

Payment Amount

₹10.0K

TDS Deducted

₹90.0K

Net Amount

10%

TDS Rate

Select TDS Section

Payment Details

Payment Amount

₹

1 Lakh

Threshold: ₹40,000

Payee Type

Additional Options

Payee has PANSenior Citizen (60+ years)Form 15G/15H submitted

TDS Summary

Payment Amount

₹1,00,000

TDS Applicable

Yes

TDS Rate10%

TDS Amount₹10,000

Net Amount After TDS₹90,000

You save with PAN

TDS without PAN would be:₹20,000

Your savings:₹10,000

Note: Threshold is ₹50,000 for senior citizens

TDS Rates FY 2026-27

Section	Threshold	Rate
192 Salary	N/A	Slab
194A Interest (other than on securities)	₹40,000	10%
194B Lottery/Gambling Winnings	₹10,000	30%
194C Contractor Payments	₹30,000	1%
194D Insurance Commission	₹15,000	5%
194H Commission/Brokerage	₹15,000	5%
194I_land Rent - Land/Building/Furniture	₹2,40,000	10%
194I_plant Rent - Plant & Machinery	₹2,40,000	2%
194J Professional/Technical Fees	₹30,000	10%
194N Cash Withdrawal	₹1,00,00,000	2%
194Q Purchase of Goods	₹50,00,000	0.1%
194LA Compensation for Compulsory Acquisition	₹2,50,000	10%

What is TDS?

Tax Deducted at Source (TDS) is a mechanism where income tax is collected at the source of income. Instead of waiting for the end of the financial year, the government collects taxes in advance from various sources like salary, interest, rent, and professional fees.

The deductor (person making payment) deducts TDS at prescribed rates and deposits it with the government. The deductee (person receiving payment) gets credit for this TDS against their total tax liability.

Important Points About TDS

PAN Requirement

Without PAN, TDS is deducted at a higher rate of 20% or the applicable rate, whichever is higher. Always provide PAN to avoid excess deduction.

Form 15G/15H

If your total income is below taxable limit, submit Form 15G (below 60) or Form 15H (senior citizens) to avoid TDS on interest income.

TDS Credit

TDS deducted is reflected in Form 26AS and can be claimed as credit while filing your Income Tax Return.

TDS Refund

If TDS deducted exceeds your actual tax liability, you can claim a refund by filing your ITR.

Frequently Asked Questions

What is TDS and why is it deducted?

TDS (Tax Deducted at Source) is a method of collecting income tax at the source of income. The person making payment deducts tax before paying you, ensuring that the government receives tax in advance rather than waiting for year-end filing. It applies to salary, interest, rent, professional fees, contractor payments, and more.

What happens if TDS is deducted but my income is below taxable limit?

If your total income is below the taxable limit and TDS has been deducted, you can claim a refund by filing your Income Tax Return (ITR). The TDS deducted appears in your Form 26AS, and you'll receive the refund after ITR processing. For interest income, you can submit Form 15G (if below 60) or Form 15H (senior citizens) to avoid TDS altogether.

What is Form 26AS and how do I check my TDS?

Form 26AS is your annual tax statement that shows all TDS deducted against your PAN during the financial year. You can view it on the Income Tax e-filing portal (incometax.gov.in) or through your net banking. It consolidates TDS from all sources - salary, banks, mutual funds, etc. Always verify Form 26AS before filing your ITR.

Why is higher TDS deducted when PAN is not provided?

As per Section 206AA, if the deductee doesn't provide PAN to the deductor, TDS is deducted at 20% or the applicable rate, whichever is higher. This is a penalty measure to encourage PAN compliance. For example, if normal TDS rate is 10%, without PAN it becomes 20%. Always provide your PAN to avoid excess deduction.

What is the difference between TDS and TCS?

TDS (Tax Deducted at Source) is deducted by the payer from payments made to you. TCS (Tax Collected at Source) is collected by the seller from the buyer at the time of sale. For example, TDS applies to salary/rent payments, while TCS applies to purchase of cars above ₹10 lakh, foreign remittance above ₹7 lakh, etc.

Can I claim TDS credit if my employer hasn't deposited it?

You can only claim TDS credit for amounts actually deposited with the government and reflected in Form 26AS. If your employer deducted TDS but didn't deposit it, you should first request them to deposit it. If they don't comply, you may need to report the employer to the Income Tax department. You cannot claim credit for undeposited TDS.

What is the threshold limit for TDS on interest income?

For banks and post offices, TDS on interest is deducted if annual interest exceeds ₹40,000 (₹50,000 for senior citizens) under Section 194A. For non-banking entities like NBFCs or companies, the threshold is ₹5,000. Interest below these limits is paid without TDS deduction.

How do I get a lower TDS certificate?

If you expect your total income to be below taxable limits or you have significant deductions, you can apply for a lower TDS certificate under Section 197. Submit Form 13 to your Assessing Officer with supporting documents. If approved, the certificate authorizes the deductor to deduct TDS at a lower rate or nil rate.

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TDS Calculator

Select TDS Section

Payment Details

Additional Options

TDS Summary

TDS Rates FY 2026-27

What is TDS?

Important Points About TDS

PAN Requirement

Form 15G/15H

TDS Credit

TDS Refund

Frequently Asked Questions

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