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TDS rate finder & calculator

Look up the rate, threshold and no-PAN rate for the TDS sections an SME actually deducts, then calculate the deduction on a real payment.

Who is being paid?
Rate — individual/HUF
1%
Rate — other payees
2%
Deduct once you pass
₹30,000
Rate if PAN not furnished
20%
₹500TDS applies
Rate applied
1%
TDS to deduct
₹500
Net payable to payee
₹49,500

Threshold of ₹30,000 crossed — TDS at 1% on the full amount.

TDS applies once EITHER a single payment crosses ₹30,000, OR the total paid to that contractor in the financial year crosses ₹1,00,000 — whichever happens first. Tick the box if the figure you have entered is the annual running total rather than one bill.

An estimate, not a quote. the Income Tax Department / your TDS return-filing utility (TRACES) produces the figure that actually applies to you — check there before you rely on a number.

Where the higher no-PAN rate comes from (section 206AA)

If the payee has not furnished a valid PAN, section 206AA requires deduction at the higher of the section’s own rate or 20% — except for payments under sections 194-O and 194Q, where a specific proviso caps the no-PAN rate at 5% instead of 20%. 206AA has no rate or threshold of its own; it only ever modifies the section actually being applied, which is why it is not a separate row in the dropdown above.

Would you rather we handled it?Getting the section, rate and threshold right on every vendor payment — and filing the TDS return on time — is exactly the kind of recurring compliance work we take off your plate.
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How TDS on vendor payments actually works

Most TDS mistakes are not arithmetic errors — they are the wrong section, the wrong threshold, or a rate that changed and nobody updated the vendor master. Three things are worth holding onto:

  • The rate can depend on who is paid, what is paid, or neither.194C genuinely varies by payee type (1% individual/HUF, 2% others). 194I and 194J vary by what the payment is for (asset type, service type) — the payee’s own individual/HUF-or-not status is irrelevant to the rate in those two.
  • Thresholds moved in 2025. Finance Act 2025 raised the thresholds for dividend (194), non-bank interest — the bank/post-office thresholds moved too, separately — commission (194H) and rent (194I), all effective 1 April 2025. A rate chart still quoting the older figures will under- or over-deduct.
  • No PAN usually means 20%, not always. 194-O and 194Q cap the no-PAN rate at 5%. 192A used to require the maximum marginal rate without PAN — that rule was removed in 2023, and it is now the ordinary 20% floor.

A related but separate question — the interest and penalty for deducting TDS late or not at all — sits in the compliance guides, alongside the ROC-side calculators for late MCA filings.

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