GST & Tax
TDS Calculator
Section-wise TDS rates — 194C, 194J, 194H, 194IB, property bought from an NRI, and a Form 3CD clause 34 worksheet.
Rates last verified 2026-09-18 — always confirm against the current notification before filing.
TDS Calculator
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194C contractor TDS, in short
- Limits: ₹30,000 for a single payment, or ₹1,00,000 in total over the financial year. Crossing either triggers TDS.
- Rate: 1% if you pay an individual or HUF, 2% if you pay a company, firm or LLP.
- Section number: payments made up to 31 March 2026 are under 194C. From 1 April 2026 (FY 2026-27) they fall under Section 393(1), Table 1, Sl. 6(i), with payment code 1023 for individuals and HUFs and 1024 for companies and firms.
Pick a 194C option in the calculator below to work it out.
From FY 2026-27, filed as Section 393(1), Table 1, Sl. 6(i)(a) — payment code 1023.
No TDS while the relevant total (this contract) stays at or below ₹30,000.00; TDS applies to the full amount once it's crossed. A ₹1,00,000/year cumulative total to the same payee also triggers it independently — enter that year's total, since TDS is then due on all of it.
TDS calculation
194C — Contractor payment (individual/HUF) · www.indianbusinesstools.com
Section numbers changed from FY 2026-27
The Income-tax Act, 2025 (in force from 1 April 2026) retires the 194-series and consolidates non-salary TDS into Section 393(1), filed against numeric payment codes (1001–1067) instead of the old section number on challans and returns. The familiar 194C/194J/194H names are kept above since that's still what everyone searches for and recognises — the new section and payment code for whichever one you pick shows just below the dropdown.
The switch follows the payment date, not the filing date. Payments made up to 31 March 2026 stay under the old 194-series — so your FY 2025-26 tax audit (Form 3CD, clause 34), and any TDS return for that year, still cite 194C, 194J and so on. Only payments made on or after 1 April 2026 use Section 393(1) and the new payment codes.
Preparing that tax audit report? Pick “Tax audit: Form 3CD clause 34” above to total tax deducted, deposited and not deposited section by section, with the column numbers of the clause 34(a) table.
Buying property from an NRI: no TAN from 1 October 2026
TDS on property bought from a non-resident falls under Section 393(2) (old Section 195), not the 1% resident-seller rule. There's no ₹50 lakh threshold, and tax is deducted on the full price at the seller's capital gains rate plus surcharge and cess — 12.5% for a long-term gain before those — unless the seller has a lower deduction certificate. Until now the buyer needed a TAN and had to file quarterly returns. From 1 October 2026 (Notification 121/2026), a resident individual or HUF buyer instead pays and reports it on their PAN through the new Schedule E of Form 141. Pick “Property bought from a non-resident” above to work out the TDS and the Form 141 due date, or read what changes from 1 October.
194C worked example: when small contracts add up
A single contract above ₹30,000 is taxed in full on its own. Smaller contracts add up: once the total paid to that contractor in the financial year goes past ₹1,00,000, TDS is due on the whole total, including the earlier invoices you didn't deduct on. The rate depends on who you pay, not on the amount.
Say you pay a contractor ₹25,000 in April, June and August and ₹30,000 in October. No single contract is above ₹30,000, but October takes the year to ₹1,05,000. TDS is then due on the full ₹1,05,000: ₹1,050 for an individual contractor or ₹2,100 for a company or firm, deducted from the October payment. To check it above, pick the 194C option for your contractor and enter ₹1,05,000.
For the exemptions (personal work, small transporters), whether GST is included, and the no-PAN rate, read TDS on contractor payments under 194C.
When to deposit the TDS, and the cost of being late
Deducting TDS is only half the job. For most payers, the tax deducted in a month must be deposited by the 7th of the next month. TDS deducted in September 2026 is due by 7 October. The exception is March: deductions made in March can be deposited by 30 April. Government deductors follow different rules, so check yours if that applies.
If you deducted the tax but deposit it late, interest runs at 1.5% a month (Section 201(1A) under the old Act), counted from the date you deducted it to the date you deposit it. A part of a month counts as a full month. Example: you deduct ₹7,500 on 20 September and deposit on 15 October, eight days after the 7 October due date. That is one month of interest, 1.5% of ₹7,500, or ₹112.50. The interest is paid with the deposit, on top of the tax. A TDS return filed late can also attract a late fee, so deposit first and file the return on time.
If you never deducted the tax, a different rule applies: 1% a month from the date it should have been deducted. The 194C guide walks through both. Check the current section number and due date on the Income Tax Department portal before relying on this for a filing.
Browse by section
Rate, threshold, worked example and FAQs for each section, with a direct link.
Notes on TDS deduction
If the deductee hasn't furnished a valid PAN, Section 206AA overrides the section-specific rate with a flat 20% (or the section rate if higher). Most sections also carry a minimum threshold below which no TDS applies at all — the calculator applies that threshold for you based on the amount and any extra detail the section needs (payer type, seller type, buyer turnover), but for sections tested on an aggregate or per-payee basis (like 194C, 194H and 194J) it can only test the figure you enter, so enter the relevant running total rather than just this invoice if others already apply for the year.
Worked example
Paying a consultant a ₹75,000 professional fee under Section 194J (professional/consultancy services, 10%): since that's above the section's ₹50,000-a-year threshold, TDS is ₹7,500 on the full amount, so you pay out ₹67,500 and deposit ₹7,500 against their PAN. If they hadn't furnished a PAN, Section 206AA would override this with a flat 20% instead — ₹15,000. (A payment at exactly ₹50,000 wouldn't cross the threshold at all, so no TDS would apply.)
Frequently asked questions
What if the person I'm paying hasn't given me a PAN?
Section 206AA overrides the section-specific rate with a flat 20% (or the section's own rate, if that happens to be higher). This calculator's "without PAN" option applies that override for you.
Do I deduct TDS on the GST portion of an invoice?
Generally no — per CBDT Circular No. 23/2017, TDS under Chapter XVII-B should be deducted only on the amount excluding GST, as long as the GST component is shown separately on the invoice. Confirm this against the specific section and the invoice format before relying on it.
Is TDS due even on very small payments?
No — most sections only apply once payments cross a threshold for the year, the month, or a single invoice, depending on the section. The calculator applies that threshold and shows nil TDS below it, but for a threshold tested on the year's aggregate to that payee, it can only test the amount you enter — so enter the running total for that payee, not just this one invoice, if others already count toward it.
How much TDS do I deduct when buying property from an NRI?
Under Section 393(2), deduct on the full sale price, not just the seller's gain, with no ₹50 lakh threshold. For a property held more than 24 months, the rate is 12.5% plus surcharge (10% above ₹50 lakh, 15% above ₹1 crore) and 4% cess: 13%, 14.3% or 14.95% in practice. For a short-term gain it's usually 30% plus surcharge and cess for an individual seller. If the seller has a Section 395 lower deduction certificate (Form 128), deduct at the certificate's rate instead.
Do I need a TAN to buy property from an NRI?
Not from 1 October 2026 if you're a resident individual or HUF. The Income-tax (Fifth Amendment) Rules, 2026 added Schedule E to Form 141, so you pay and report the TDS on your PAN within 30 days from the end of the month you deduct, then download Form 132 for the seller from TRACES. Deductions before 1 October 2026, and buyers that are companies or firms, still need a TAN, a challan and the quarterly return (Form 144).
Who is responsible for depositing TDS with the government?
The person or business making the payment (the deductor) — not the payee. You deduct it at the time of payment or credit, whichever is earlier, deposit it with the government by the 7th of the next month (30 April for March), and later file a quarterly TDS return.
What happens if I deposit TDS late?
Interest at 1.5% a month, from the date you deducted the tax to the date you deposit it, with a part of a month counted as a full month. For example, ₹7,500 deducted on 20 September and deposited on 15 October costs ₹112.50 in interest. If you never deducted the tax, the rate is 1% a month from the date it should have been deducted.
When is the Q2 TDS return due, and what is the late fee?
The quarterly TDS statement for July to September 2026 (Q2) is due on 31 October 2026. Under the Income-tax Act, 2025 you file Form 138 for salary (earlier Form 24Q), Form 140 for non-salary payments to residents (earlier 26Q) or Form 144 for non-salary payments to non-residents (earlier 27Q). If you file after the due date, Section 427 charges a fee of ₹200 for every day the delay continues, which the old Act called the Section 234E fee. It can't exceed the TDS you had to deduct for the quarter, and you pay it before you file the statement. Filing on 10 November, 10 days late, costs ₹2,000. This fee is separate from the interest on late deposit above.