Tax tool
TDS Calculator
Get an indicative TDS figure for selected, common payments to resident payees, with the basis of the calculation shown. Your entered values stay out of analytics.
Version 1 supports transactions from 1 April 2025 onwards, for payments to resident payees.
This calculator provides an indicative TDS calculation based on the information entered by the user and the tax rules configured in the system as of the date stated. Actual TDS applicability may depend on the nature of the transaction, status of the payer and payee, residency, PAN availability, applicable thresholds, exemptions, certificates, notifications and other circumstances not captured by this calculator. This tool is for general informational purposes and is not tax or professional advice. Please verify the applicable provision and current requirements from official sources or consult a qualified tax professional before deducting, depositing or reporting TDS.
Formula and assumptions
TDS required to date = amount the rate applies to × rate ÷ 100, rounded to the nearest rupee. Additional TDS = TDS required to date less TDS already deducted. The rate, threshold, provision and amount the rate applies to come from the rule for the date used.
- Version 1 covers selected, common domestic business payments to resident payees, for events from 1 April 2025.
- The date used is the earlier of the credit date and the payment date. It decides the rule and the Act.
- Whether a threshold is crossed is tested with the amounts you enter. Where the law needs more information than the calculator asks for, it says it cannot determine the result.
- Once a yearly threshold is crossed, the rate applies to the year's total, not just the excess, and the TDS already deducted is subtracted. Purchase of goods is the exception: it applies only to the amount above the annual limit.
- Without a valid PAN, the higher rate under the PAN provision applies: the highest of the rule's rate, the rate in force and the statutory floor (20%, or 5% for purchase of goods). For the supported resident payments the calculator compares the rule's rate with the floor.
- The calculation is exact; the TDS to deduct is rounded to the nearest rupee.
- The tax required to date is calculated at full precision and shown before rounding, rounded to the nearest rupee (half up), and the TDS already deducted is then subtracted.
Formula version TDS-RULES-v1.0, last reviewed 2 October 2026.
Frequently asked questions
Which payments does it cover?
Selected, common domestic business payments to resident payees, for transactions from 1 April 2025: contractor payments, professional and technical fees, commission or brokerage, rent, purchase of goods where the conditions are met, and payments by a firm or LLP to a partner.
What is left out?
Interest, salary, payments to non-residents, property transactions, virtual digital assets, lower or nil deduction certificates and other specialised provisions. These need more information than a simple calculator can ask for.
Why does it sometimes say it cannot determine the result?
Because a wrong figure is worse than none. If the payee has not furnished a PAN, or the payment crosses a threshold, or the situation is outside what the calculator covers, it asks you to verify instead.
Which law does it use?
The one that applies on the earlier of the date the amount was credited and the date it was paid: the Income-tax Act, 1961 up to 31 March 2026 and the Income-tax Act, 2025 from 1 April 2026. The invoice date does not decide it.