TDS Calculator and Rate Chart 2026-27
How much tax is cut from a payment before you get it, or how much you must cut before you pay: rent, FD interest, professional fees, contract work, commission, property and more, under the Income-tax Act, 2025.
TDS is tax cut from a payment before you receive it. From 1 April 2026 the rates are in section 393 of the Income-tax Act, 2025, mostly unchanged from the old sections 194A to 194T. A bank cuts 10% of FD interest once it passes ₹50,000 in the year (₹1 lakh for seniors): on ₹60,000 that is ₹6,000. A tenant paying ₹60,000 a month cuts 2%, ₹14,400 for the year. A property buyer cuts 1% of the price at ₹50 lakh or more. Without a PAN most rates rise to 20%.
The words on this page, explained simply
New to this? Here is what each term means, in plain English.
- TDS threshold
- The amount a payment must cross before any TDS is cut. Once it is crossed, TDS is cut on the whole amount, not only the part above it: ₹60,000 of FD interest loses ₹6,000, not ₹1,000.
- Specified person
- The Act's name for a payer that has to cut TDS on fees, commission and business rent: any company, firm or trust, and individuals whose business sales were above ₹1 crore (or professional fees above ₹50 lakh) last year. Most salaried people are not one.
- TDS without a PAN
- If you don't give the payer your PAN (your 10-character tax ID), TDS is cut at 20% or the normal rate, whichever is higher. Giving your PAN brings it back to the normal rate.
- Form 121
- A form you give the bank or other payer saying your total tax for the year will be nil, so they cut no TDS. It replaced Form 15G and Form 15H from April 2026. It needs your PAN.
- Form 141
- The online form an individual uses to pay TDS on rent, a property purchase, crypto or large contract payments, without needing a TAN. It replaced Forms 26QB, 26QC, 26QD and 26QE.
- TDS on FD interest
- Tax the bank cuts from your FD interest before paying it: 10% once interest from that bank goes above ₹50,000 in a year (₹1 lakh if you are 60 or over). You count it against your tax when you file your return. Form 121 (it replaced 15G and 15H in April 2026) stops it if your tax for the year will be nil.
TDS (tax deducted at source) means the person paying you keeps back part of the money and pays it to the government in your name. It is not an extra tax: it shows in your Form 26AS and annual information statement, and you subtract it from the tax you owe when you file your return. If it is more than your tax, you get the difference back as a refund.
Choose the kind of payment, enter the amount, and the calculator tells you whether TDS applies, at what rate, and how much is cut.
TDS rate chart for tax year 2026-27
The Income-tax Act, 2025 replaced the 1961 Act on 1 April 2026. Its section 393 puts every TDS rate in three tables: payments to residents (393(1)), to non-residents (393(2)) and to anyone (393(3)). The rates and thresholds below are for payments to residents.
| Payment | Old section | Section 393 row | Rate | TDS starts at |
|---|---|---|---|---|
| FD or RD interest from a bank or post office | 194A | 393(1) Sl. 5(ii) | 10% | ₹50,000 a year per bank (₹1 lakh if 60+) |
| Interest from a company, NBFC or other lender | 194A | 393(1) Sl. 5(iii) | 10% | ₹10,000 a year |
| Interest on bonds or debentures | 193 | 393(1) Sl. 5(i) | 10% | ₹10,000 a year |
| Dividend from a company | 194 | 393(1) Sl. 7 | 10% | ₹10,000 a year per company |
| Mutual fund payouts (IDCW / dividend option) | 194K | 393(1) Sl. 4(i) | 10% | ₹10,000 a year per fund house |
| Rent paid by an individual (salaried or small business) | 194-IB | 393(1) Sl. 2(i) | 2% | rent above ₹50,000 a month |
| Rent of a building paid by a company, firm or larger business | 194-I | 393(1) Sl. 2(ii)(b) | 10% | rent above ₹50,000 a month |
| Rent of machinery or equipment paid by a business | 194-I | 393(1) Sl. 2(ii)(a) | 2% | rent above ₹50,000 a month |
| Professional fees paid by a business (doctor, lawyer, CA, consultant, freelancer) | 194J | 393(1) Sl. 6(iii) | 10% | ₹50,000 a year |
| Technical services fees paid by a business (not professional) | 194J | 393(1) Sl. 6(iii) | 2% | ₹50,000 a year |
| Contract work paid by a company, firm, trust, government or larger business | 194C | 393(1) Sl. 6(i) | 1% / 2% | a bill above ₹30,000, or ₹1 lakh in the year |
| Commission or brokerage (not insurance) | 194H | 393(1) Sl. 1(ii) | 2% | ₹20,000 a year |
| Insurance commission | 194D | 393(1) Sl. 1(i) | 2% / 10% | ₹20,000 a year |
| Contract work, fees or commission paid by an individual not covered above | 194M | 393(1) Sl. 6(ii) | 2% | ₹50 lakh a year |
| Buying a property (not farmland) | 194-IA | 393(1) Sl. 3(i) | 1% | price or stamp duty value of ₹50 lakh or more |
| Lottery, game show, card game or betting winnings | 194B | 393(3) Sl. 1 | 30% | a win above ₹10,000 |
| Online game winnings | 194BA | 393(3) Sl. 2 | 30% | no threshold |
| Life insurance payout that is taxable | 194DA | 393(1) Sl. 8(i) | 2% | payout above ₹1 lakh |
| Selling crypto or other virtual digital assets | 194S | 393(1) Sl. 8(vi) | 1% | ₹50,000 a year (₹10,000 for other buyers) |
| Salary, interest or commission from a firm to its partner | 194T | 393(3) Sl. 7 | 10% | ₹20,000 a year |
TDS is cut on the whole amount once the threshold is crossed, not just the part above it. Most thresholds count the total from one payer in the tax year (April to March); rent is tested month by month and lottery winnings win by win. Interest, insurance commission and winnings are taxed at the 'rates in force' set each year by the Finance Act; the Finance Act, 2026 keeps 10% for interest, 2% for insurance commission and 30% for winnings.
Who has to deduct
Most rows apply only when the payer is a business. The Act calls such a payer a 'specified person': any company, firm, trust or other body, plus an individual or HUF whose business turnover was above ₹1 crore (or professional receipts above ₹50 lakh) in the previous year. Salaried people and small businesses deduct TDS in only a few cases: rent above ₹50,000 a month, buying a property worth ₹50 lakh or more, contract work, fees or commission above ₹50 lakh in the year, and crypto bought directly from a seller above ₹50,000 in the year. None of these needs a TAN; the TDS is paid with Form 141.
Example: a company paying a consultant ₹1.2 lakh in the year cuts 10%, ₹12,000. Buying a flat for ₹75 lakh with a stamp duty value of ₹80 lakh, the buyer cuts 1% of the higher figure, ₹80,000.
No PAN, and Form 121
If you do not give the payer your PAN, TDS is cut at the higher of the normal rate and 20% (section 397(2)). For rent paid by an individual, the higher TDS cannot be more than one month's rent.
If your total tax for the year will be nil, you can give the payer Form 121 (it replaced Forms 15G and 15H from April 2026) and no TDS is cut on interest, dividends, mutual fund payouts, insurance commission, life insurance payouts or business rent. If you are under 60, it also requires that this income does not exceed the basic exemption limit. The form is invalid without your PAN.
TDS on salary
Salary is covered by section 392, not 393: your employer works out your tax for the whole year and cuts an equal part each month. Use the salary calculator to see that tax under the new and old regime.
Key takeaways
- TDS rates are in section 393 of the Income-tax Act, 2025 from 1 April 2026; the old 194-series numbers are gone.
- FD interest 10% above ₹50,000 a year per bank (₹1 lakh for 60+). Rent by individuals 2% above ₹50,000 a month.
- Professional fees 10%, contract work 1% or 2%, commission 2%, property 1% at ₹50 lakh or more.
- No PAN: at least 20%. Nil tax: file Form 121 (formerly 15G/15H).
Frequently asked questions
What is the TDS rate on FD interest in 2026-27?
10%, once interest from one bank passes ₹50,000 in the tax year (₹1 lakh if you are 60 or over), or 20% without a PAN. Section 393(1), Table Sl. No. 5(ii).
How much TDS on rent?
A salaried tenant or small business paying more than ₹50,000 a month cuts 2% of the rent, once, from the last month's rent of the year or tenancy. A company or larger business cuts 10% on a building (2% on machinery) when rent is above ₹50,000 a month.
What is section 393?
The TDS section of the Income-tax Act, 2025, in force from 1 April 2026. It replaces the TDS sections 193 to 196D of the 1961 Act (salary moved to section 392) with three tables: payments to residents, to non-residents and to any person.
What is the TDS on buying a property?
1% of the price or the stamp duty value, whichever is higher, when either is ₹50 lakh or more. The buyer deducts it and pays it with Form 141 (formerly 26QB).
What is TDS on commission now (old 194H)?
2% once commission or brokerage from one payer exceeds ₹20,000 in the year. Insurance commission (old 194D) is 2% for individuals, 10% for companies.
What happens if I don't give my PAN?
TDS is cut at the higher of the normal rate and 20%, and any Form 121 you file is invalid.
Which form replaced 15G and 15H?
Form 121, under section 393(6) of the Income-tax Act, 2025 and rule 211 of the Income-tax Rules, 2026.