Use this TDS rate calculator to find how much tax to deduct at source on a payment to a resident in FY 2026-27. Choose the payment type, enter the amount, and the TDS rate calculator gives you the rate and the TDS to deduct. The TDS rate calculator shows each payment type with both the old section number you know (194J, 194C, 194I and so on) and where it now sits under the new Section 393.
One Section 393 instead of many 194 sections
From 1 April 2026 the new Income-tax Act, 2025 brings the many old TDS sections together. Contractor payments, professional fees, rent, interest, commission and the rest, earlier spread across 194C, 194J, 194I, 194H, 194A and others, now sit inside a single Section 393 with a table of payment codes. The rates stay broadly the same. For payments up to 31 March 2026, keep using the old section numbers on challans and returns. Using an old section number for a payment on or after 1 April 2026 can trigger a validation error.
Common TDS rates and thresholds for FY 2026-27
These resident rates and limits follow the Finance Act 2025, effective 1 April 2025, and carry into FY 2026-27. TDS applies only once your payments cross the threshold for that section.
- Professional fees (194J): 10 percent, once fees cross Rs 50,000 in the year, raised from Rs 30,000.
- Technical or call centre services (194J): 2 percent, once fees cross Rs 50,000 in the year.
- Contractor payments (194C): 1 percent to an individual or HUF, 2 percent to a company or firm. Applies on a single payment above Rs 30,000, or Rs 1,00,000 in aggregate for the year.
- Rent of land, building or furniture (194I): 10 percent, once rent crosses Rs 50,000 in a month, raised from Rs 2,40,000 a year. Rent of plant or machinery: 2 percent.
- Commission or brokerage (194H): 2 percent, once it crosses Rs 20,000 in the year, raised from Rs 15,000.
- Interest other than on securities (194A): 10 percent. From a bank or post office the limit is Rs 50,000 a year, or Rs 1,00,000 for senior citizens. From others it is Rs 10,000 a year.
- Rent paid by an individual or HUF (194IB): 2 percent, once rent crosses Rs 50,000 in a month.
Official figures: TDS rates, Income Tax Department.
No PAN means a higher rate
If the payee does not give a PAN, Section 397 applies for the new tax year (old section 206AA for earlier obligations) and uses the higher of the normal rate or 20 percent. The TDS rate calculator does this for you when you tick the no PAN box.
Worked example: TDS on professional fees that cross Rs 50,000
A private limited company hires a chartered accountant for three one-off jobs in FY 2026-27: Rs 15,000 in June, Rs 20,000 in September and Rs 25,000 in December. No bill reaches Rs 50,000 on its own, but the test is the running total for the tax year. Under Section 393(1), Table Sl. No. 6(iii), the old 194J, once fees to the same professional exceed Rs 50,000 in the tax year, TDS at 10 percent applies to the entire amount, including the bills already paid.
| Month | Fee (Rs) | Running total (Rs) | TDS (Rs) | Paid (Rs) |
|---|---|---|---|---|
| June | 15,000 | 15,000 | 0 | 15,000 |
| September | 20,000 | 35,000 | 0 | 20,000 |
| December | 25,000 | 60,000 | 6,000 | 19,000 |
| Total | 60,000 | 6,000 | 54,000 |
June and September stay under the limit and are paid in full. The December bill takes the total to Rs 60,000, so the company deducts 10 percent of Rs 60,000, which is Rs 6,000, from that one bill and pays Rs 19,000. Across the three bills the accountant receives Rs 54,000 and claims the Rs 6,000 as tax already paid. A further Rs 10,000 bill in February carries TDS on its own amount only, Rs 1,000.
If the accountant has not given a PAN, Section 397(2), the old 206AA, lifts the rate to 20 percent. The December deduction doubles to Rs 12,000 and only Rs 13,000 of that bill is paid.
In the calculator above, choose Professional fees (10 percent) and enter 60000, the year’s total so far, not the December bill. It shows TDS to deduct Rs 6,000 and net amount payable Rs 54,000, the Rs 35,000 already paid plus December’s Rs 19,000. Tick Payee has not given a PAN and it shows 20 percent, Rs 12,000 and Rs 48,000.
Our rule: keep a running total of fees for every professional from 1 April, and tell the payee before you pay the bill that crosses Rs 50,000, because that one bill carries the TDS for the whole year so far.
Related tools
Filed or paid late? Use the TDS late fee and interest calculator for the 234E fee and 201(1A) interest. For your own tax, see the Section 234 calculator and the regime calculator. Deposit TDS on the income tax e-filing portal.
This TDS rate calculator is an estimate for general guidance and is not tax advice. Surcharge, cess and special cases can change the rate. Please confirm with a qualified professional.
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Frequently asked questions
What is the TDS rate on professional fees?
TDS on professional fees is 10 percent under Section 194J. Technical and call centre services are 2 percent. From 1 April 2026 both sit under Section 393.
What is the TDS rate on rent?
Rent of land, building or furniture is 10 percent under 194I, and rent of plant or machinery is 2 percent. Rent paid by an individual under 194IB is 2 percent.
What happens if the payee has no PAN?
Section 397 applies for the new tax year (old section 206AA for earlier obligations) and uses the higher of the normal rate or 20 percent when the payee does not provide a PAN.
Has the TDS section number changed?
Yes. From 1 April 2026 the Income-tax Act, 2025 places the old 194 series sections under a single Section 393 with payment codes. Old numbers apply to payments up to 31 March 2026.
Official reference: Income-tax Act, 2025 (as amended by the Finance Act, 2026), Income Tax Department.
Related free calculators: advance tax installment estimator FY 2026-27.
Official source: Always confirm the current TDS rate chart at incometax.gov.in.
The tool is a rate-times-amount estimate for the listed resident payments after TDS applicability is established. It does not test payer eligibility, annual/monthly thresholds, lower/nil certificates or the special cap for individual/HUF rent withholding. Determine the legal TDS base first. The credit/payment event determines the applicable Act; paying an old invoice after April does not automatically move an earlier deduction obligation into the new Act.
Sources: Amended sections 393 and 397.