Note: New sections apply from 1 April 2026. Old section numbers still shown for easy reference.
TDS stands for Tax Deducted at Source. It refers to the tax amount deducted by the person making a payment and deposited with Income Tax Department on behalf of the person receiving payment. TDS can apply to different types of payments, such as salary, interest, rent, commission, professional fees and certain other specified payments under Income Tax Act 2025.
The tax is deducted at the time of payment/credit. The amount deducted is then deposited with the Income Tax Department and the deductee can claim TDS as tax credit during ITR filing.
The latest TDS rate table for residents is given below:
| S. No. | Nature of Payment | Old Act Section | New Act Section | TDS Rate | Threshold Limit |
|---|---|---|---|---|---|
| 1. | Salary | Section 192 | Section 392 | Slab Rates | As per income tax slabs |
| 2. | Professional/Technical Fee | Section 194J | Section 393 | 2% or 10% | Varies / Rs. 30,000 to Rs. 50,000 |
| 3. | Payment made to Contractors | Section 194C | Section 393 | 1% for Individual/2% for Others | Rs. 30,000 (single) / Rs. 1,00,000 (annual) |
| 4. | Commission/ Brokerage | Section 194H | Section 393 | 2% | Rs. 20,000 |
| 5. | Land, Building or Furniture Rent | Section 194I | Section 393 | 10% | Rs. 50,000 per month |
| 6. | Rent for Plant and Machinery | Section 194I | Section 393 | 2% | Rs. 50,000 per month |
| 7. | Winning from Lotteries/Games | Section 194B/BB | Section 393(3) | 30% | Rs. 10,000 |
| 8. | Purchase of Goods | Section 194Q | Section 393 | 0.1% | Rs. 50,00,000 in a tax year |
| 9. | Immovable Property’s Transfer | Section 194-IA | Section 393 | 1% | Rs. 50,00,000 |
The formula for the TDS calculation for salary is as follows:
Average Income Tax Rate = Income Tax Payable ÷ Estimated Taxable Income × 100
Suppose an employee named Ms. Ramya's annual salary is Rs. 12,00,000. Please be aware that these rates vary every year and are governed by the tax rules of the relevant tax year.
Under new tax regime for tax year 2026-27, she can claim applicable standard deduction of Rs. 75,000, which makes her taxable income Rs. 11,25,000.
Her tax will then be calculated according to applicable income tax slabs. Based on these slabs, her income tax before rebate is Rs. 52,500.
Since her total income is within applicable rebate limit, tax payable after rebate is Nil.
Therefore:
Average TDS Rate = (Rs. 0 ÷ Rs. 11,25,000) × 100 = 0%
Annual TDS = Rs. 0
Monthly TDS = Rs. 0 ÷ 12 = Rs. 0
Therefore, in this example, no TDS would be deducted from Ms. Ramya's salary, assuming she has no other taxable income and all above conditions apply.
The salary TDS calculator India is an online tool that allows individuals to determine how much tax amount will be deducted from their salary, and find out their in-hand salary after deduction. It allows you to TDS calculate the amount of tax deducted at source as per the Income Tax Act 2025.
Registrationwala’s Tax Deducted at Source calculator is an easy-to-use online tool. To use it, follow these steps:
Choose Recipient from (i) Individual (ii) Hindu Undivided Family (iii) Sole Proprietorship and (iv) Others.
Now, click on the checkbox if the deductee's PAN is not available. (The TDS rate varies depending on whether the deductee has a PAN or not.)
Now, choose the section under which your income falls.
Finally, enter the Payment Amount.
After entering all the required information, our TDS calculating tool will reflect the amount of Tax Deducted at Source.
The Income-tax Act, 2025 replaced the longstanding Income-tax Act, 1961 from 1 April 2026. Under new Act, the TDS provisions have been simplified and consolidated. The earlier TDS provisions under Sections 192 to 194T have now been mainly consolidated into two sections, i.e., Section 392 for TDS on salaries and Section 393 for TDS on other specified payments.
The TDS rates and monetary thresholds have largely remained the same under the new legislation. However, the section numbers and reporting requirements have totally changed. For transactions taking place on or after 1 April 2026, deductors need to use relevant new section or table reference while filing TDS returns instead of quoting old section numbers that existed under the old Act.
For example, the old Section 194H relating to commission/brokerage is now covered u/s 393. The new Act therefore brings a major structural and numbering change in TDS provisions rather than a broad change in TDS rates.
There are numerous benefits of using a calculating tool for Tax Deducted at Source, including:
The TDS calculator India helps you get an estimate of the TDS amount you need to pay.
The TDS tax calculator instantly calculates your TDS and reduces manual effort and helps you plan your taxes efficiently.
Registrationwala’s TDS calculating tool is the best TDS calculator in India. It is easy to use and provides immediate results based on your input.
It helps you verify whether the deduction is as per the right section of the IT Act.
Since this calculating tool is available online, you can use it anytime, anywhere.
Since TDS is calculated in advance, any excess tax paid can be claimed as a refund in your ITR. The calculator ensures quick TDS calculations for better tax filing.
While TDS calculators are quite helpful for tax planning and compliance, it’s always advisable to consult a tax expert or refer to official guidelines from the Income Tax Department to stay updated on tax rules and rates.
When a person fails to provide a valid Permanent Account Number (PAN) or provides an incorrect or invalid PAN to the person making the payment, TDS may be deducted at a higher rate. Under the applicable provisions, TDS is generally deducted at rate prescribed under relevant provision, rate in force, or 20%, whichever is higher.
Need help with TDS Return Filing? Connect with Registrationwala’s experts!
Q1. How much TDS is charged if the PAN is not furnished?
A. If the PAN is not furnished or its details are incorrect, the TDS is deducted at a higher rate than usual, usually at 20% or the rate specified under the Income Tax Act (whichever is higher).
Q2. On which payments is the TDS required to be deducted?
A. TDS is required to be deducted on salaries, interest, commissions, rent, professional fees, technical services fees and other payments specified in the Income Tax Act.
Q3. Which platform offers the best TDS calculating tool in India?
A. Registrationwala offers the best TDS calculator India.
Q4. How is TDS Return filed in India?
A. In India, the TDS return is filed electronically by visiting the official e-filing website of the Income Tax Department.
Q5. What is TDS Form 130?
A. Form 130 is a new TDS certificate introduced under the Income-tax Act, 2025. It is applicable to salary, pension and specified senior citizen interest income. Earlier, Form 16 was used for these purposes under the Income-tax Act, 1961. Under the new 2025 Act, Form 130 replaces Form 16 for applicable income.
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