Tax Deducted at Source · All sections · PAN / no-PAN rates · Net payment · Updated FY 2026–27
All TDS sectionsPAN vs no-PANThreshold checkNet payment
Step 1 — Select payment type (TDS section)
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Section 194J — Professional / technical fees
10% for professionals (doctors, lawyers, CAs, consultants). 2% for technical services. Threshold ₹30,000 per FY.
With PAN: 10%Without PAN: 20%Annual threshold: ₹30,000
Step 2 — Enter payment details
₹
₹
Include current payment. TDS applies once cumulative total crosses ₹30,000.
PAN furnished?
TDS Applicable@ 10% (with PAN)
Gross payment
₹1.00 L
TDS deducted
₹10,000
Net you receive
₹90,000
Breakdown
Gross payment₹1.00 L
TDS rate (Sec. 194J)10%
TDS amount deducted−₹10,000
Net payment to payee₹90,000
TDS deposited to govt.₹10,000
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Cost of not furnishing PAN — ₹10,000 extra TDS
With PAN — 10%
TDS: ₹10,000
You receive: ₹90,000
Without PAN — 20%
TDS: ₹20,000
You receive: ₹80,000
Always furnish PAN to the deductor. The TDS is still adjustable against your final tax liability when you file ITR — but the higher deduction without PAN ties up your cash flow unnecessarily.
TDS rate chart — all sections FY 2024–25
Click any row to calculate TDS for that section
Section
Nature of payment
Threshold
With PAN
Without PAN
Notes
194A
🏦Interest (banks / co-ops / post office)
₹40,000/yr
10%
20%
Threshold ₹50,000 for senior citizens
194B
🎰Winnings (lottery / crossword / game)
₹10,000/txn
30%
30%
TDS at 30% on every prize above ₹10,000
194C
🔨Payment to contractors / subcontractors
₹1.00 L/yr
1%
20%
1% for individuals/HUF, 2% for others
194D
🛡️Insurance commission
₹15,000/yr
5%
20%
TDS at 5% on insurance agent commission exceeding ₹15,000 in FY
194H
🤝Commission / brokerage
₹15,000/yr
5%
20%
TDS at 5% on commission/brokerage exceeding ₹15,000 in a financial year
194I
🏠Rent (land / building / furniture)
₹2.40 L/yr
10%
20%
10% on land/building/furniture rent
194IA
🏘️Purchase of immovable property
₹50.00 L/txn
1%
1%
Buyer must deduct 1% TDS on property purchase of ₹50L+
194IB
🏡Rent paid by individuals (above ₹50,000/month)
₹50,000/txn
5%
20%
Individuals/HUF paying monthly rent above ₹50,000 must deduct 5% TDS at year-end or lease termination
194J
💼Professional / technical fees
₹30,000/yr
10%
20%
10% for professionals (doctors, lawyers, CAs, consultants)
194Q
📦Purchase of goods
₹50.00 L/yr
0.1%
5%
Buyer with turnover >₹10Cr deducts 0
194S
₿Payment for VDA (crypto)
₹10,000/yr
1%
1%
1% TDS on transfer of Virtual Digital Assets exceeding ₹10,000/year (₹50,000 for specified persons)
*Rates as per Finance Act 2024. Surcharge and health & education cess may apply in certain cases. Verify with a CA for specific situations.
Tax Deducted at Source (TDS) is a mechanism by which the government collects income tax at the source of income — before the payment reaches the recipient. The payer (deductor) deducts a specified percentage of tax from the payment and deposits it with the government on behalf of the recipient (deductee). The deductee then gets credit for this TDS when filing their income tax return.
TDS applies across dozens of payment types — salaries, interest, rent, professional fees, contractor payments, lottery winnings, and more. Each type has a specific section under the Income Tax Act, its own threshold limit, and its own rate depending on whether the recipient has furnished a PAN.
How TDS works — the complete flow
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Step 1
Payment due
Deductor (payer) is about to make a payment — salary, rent, fees, interest etc.
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Step 2
TDS deducted
Deductor deducts applicable TDS % from gross amount before releasing payment.
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Step 3
Deposited to govt.
TDS deposited to government via challan by the 7th of the following month.
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Step 4
Form 26AS credit
TDS reflects in deductee's Form 26AS / AIS. Adjusted against final tax when filing ITR.
What happens if TDS is more than your actual tax?
If TDS deducted exceeds your actual income tax liability (because your income is below the taxable limit, or you have eligible deductions that reduce your tax), you can claim a TDS refund when filing your ITR. The Income Tax Department typically processes refunds within 20–45 days of ITR verification for straightforward cases. This is why it's crucial to file your ITR even when all TDS has been deducted — a refund may be due.
How to avoid excess TDS — Form 15G and 15H
Form 15G — for individuals below 60
Who can file
Resident Indian below 60 years of age
When valid
Your total income is below the basic exemption limit (₹2.5L or ₹7L under new regime)
Effect
Bank / NBFC / company will not deduct TDS on interest or other specified payments
Submission
Submit at the beginning of each financial year to every payer
Form 15H — for senior citizens (60+)
Who can file
Resident Indian aged 60 years or above
When valid
Tax on total income is NIL (even if income is above basic exemption — due to deductions)
Effect
Bank will not deduct TDS on FD/RD interest even above ₹50,000 threshold
Submission
Submit at the beginning of each financial year to every bank/payer separately
Calculate your full income tax
Old vs new regime with all deductions — FY 2024–25
What is the penalty for not deducting or depositing TDS?▼
Failing to deduct TDS: penalty under Section 271C equal to the amount of TDS not deducted. Additionally, disallowance of 30% of the expense for which TDS was not deducted (Section 40(a)). Failing to deposit deducted TDS: interest at 1.5% per month from the date TDS was deductible to the date of payment. In serious cases, prosecution is also possible under Section 276B. For deductors, timely TDS compliance is critical.
By what date must TDS be deposited with the government?▼
For most cases: by the 7th of the month following deduction. Exception: TDS deducted in March must be deposited by April 30th. For TDS deducted on property purchase (Section 194-IA/IB), by the 30th of the month following the month of deduction. TDS returns (Form 24Q for salary, 26Q for others) must be filed quarterly — by July 31, October 31, January 31, and May 31.
What is Form 26AS and why should I check it?▼
Form 26AS (now replaced by AIS — Annual Information Statement) is a consolidated tax statement available on the Income Tax portal showing all TDS deducted on your behalf, advance tax paid, self-assessment tax, and high-value transactions reported to the department. Before filing ITR, always check your Form 26AS / AIS to ensure all TDS deducted by employers, banks, and other payers matches your records. Mismatches can delay refunds or trigger notices.
Is TDS applicable on GST amount?▼
No. TDS under Income Tax is deducted on the base amount (excluding GST). If a professional charges ₹1,00,000 + 18% GST = ₹1,18,000, TDS at 10% under Section 194J is deducted on ₹1,00,000 only = ₹10,000 TDS. The GST component is excluded. This is clarified by CBDT Circular No. 23/2017. However, TDS under GST law (Section 51 of CGST Act) is a separate concept applicable to certain government entities — not the same as Income Tax TDS.
What is the difference between TDS and TCS?▼
TDS (Tax Deducted at Source) is deducted by the payer — the person making the payment deducts tax and pays the net amount to the recipient. TCS (Tax Collected at Source) is collected by the seller — the person receiving the payment collects tax from the buyer and deposits it with the government. Common TCS examples: sale of motor vehicles above ₹10L (1% TCS), foreign remittances under LRS above ₹7L (20% TCS from Oct 2023), sale of overseas tour packages (20% TCS). Both TDS and TCS are adjustable against your final tax liability.
