FY 2025–26 / AY 2026–27: This calculator illustrates covered resident payments when the payer is required to deduct under the selected section and the recipient has a valid PAN. TDS depends on the financial year, payer, recipient, payment type and period; a rate alone cannot establish coverage.

Covered bank interest has an annual threshold of ₹50,000 for non-seniors and ₹1,00,000 for senior citizens; other covered resident interest uses ₹10,000. Securities interest is a separate category and is excluded here.

Covered professional services use a ₹50,000 annual threshold and ten-percent rate. Qualifying technical services under section 194J use a two-percent rate; not every service labelled technical necessarily falls into that category.

For covered contractor payments, a single payment above ₹30,000 or annual aggregate above ₹1,00,000 can trigger deduction. The model uses one percent for individual/HUF recipients and two percent for other recipients. Select the amount basis that matches your inputs.

Covered section 194-I rent has a threshold of ₹50,000 for a month or part of a month, with ten percent for land/building/furniture/fittings and two percent for plant/machinery/equipment. The annual-rent option assumes equal payments over twelve months; it cannot assess uneven or part-month arrangements.

Salary TDS follows estimated annual tax liability. It has no generic ten-percent rate in this tool. Use the income-tax comparison with the stated financial-year scope.

TDS Calculator

Nature of Payment Covered bank interest — non-senior, annualCovered bank interest — senior citizen, annualOther covered resident interest — annualCovered building/land/furniture rentCovered plant/machinery/equipment rentCovered professional services — annualQualifying technical services — annualCovered contractor payment

Recipient Type (For Contractor)

Individual / HUF (1%) Company / Firm / Others (2%)

Amount basisContractor single payment / rent for one monthContractor annual aggregate / annual rent paid evenly over twelve months

Salary TDS depends on estimated annual tax liability. Use the FY 2025–26 income-tax comparison; this tool does not apply a flat salary TDS rate.

Payment Amount (₹)

PAN Scope Valid PAN provided (this model’s scope)

Salary TDS is outside this tool. Use an annual tax-liability estimate with the stated financial-year scope.

This model requires valid PAN. Missing-PAN treatment is outside its scope.

✅ No TDS in This Covered Scenario: The payment amount is below the taxable threshold limit for this section.

Applicable Section Sec 194A

Threshold for Selected Period ₹ 50,000

Standard Rate 10%

TDS Deducted

₹0

Effective Rate

0%

Net Payable Amount

₹0

Gross Payment vs Net Income

Threshold Impact Simulation

(Shows how TDS activates once the amount crosses the threshold)

Gross Amount	TDS Amount	Net Amount

What is TDS (Tax Deducted at Source)?

Tax Deducted at Source (TDS) is a mechanism instituted by the Indian Government to collect tax directly at the source of income. When a person (deductor) makes a specified type of payment to another person (deductee), they are legally required to deduct a certain percentage of tax before paying the balance.

Use the displayed financial-year scope

Use the covered payment categories, amount basis and valid-PAN scope described above. Salary uses an annual income-tax estimate rather than a flat rate. Missing-PAN and other excluded cases need separate assessment.

This model excludes non-resident rules, missing-PAN treatment, exemptions, declarations, lower-deduction certificates and other TDS sections. Check the applicable official rule before treating an output as an instruction to deduct.

Sources: Official Income Tax Act viewer; section 194J. The model is explicitly scoped to FY 2025–26; it does not certify a complete FY 2026–27 or 2025 Act transition.

Last Updated on 4 weeks ago by Team Paisaseekho