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Income Tax · Updated for tax year 2026-27

TDS Calculator 2026-27 — Payment Codes & New Sections

From tax year 2026-27, TDS is the payment amount × the rate for its payment code in the tables under Section 393(2) (old sec. 195) and Section 393(1) (old sec. 193–194T), and TCS follows Section 394 (old sec. 206C). Each nature of payment has a four-digit payment code — for example 1027 for professional fees (old 194J(b)) or 1024 for contract work (old 194C). Without a valid PAN the higher rate under Section 397(2) (old sec. 206AA) applies. Pick the form and payment code, enter the amount and see the TDS to deduct.

Enter your details

Values you enterComputed values
₹

Total TDS Amount

₹0

%Surcharge 0%
₹0
%Cess 0%
₹0

Applied TDS Rate

20%

Important Note

If the payee has no valid PAN, TDS is deducted at the higher of the applicable rate or 20% (5% for purchase of goods and e-commerce), and TCS at twice the rate or 5%, capped at 20% — Section 397(2) (old sec. 206AA / 206CC).

Disclaimer: Computed to the best of our knowledge, as per the law — including the section changes under the Income-tax Act, 2025 — in force on the date this website was last deployed (28 Sep 2026). Results are estimates for guidance only and are not tax, legal or investment advice. Please verify with the Act, rules and notifications, or a qualified professional, before relying on them. Rates and limits last reviewed on 28 Sep 2026.

How to use the TDS Calculator

  1. 1

    Choose the tax year — 2026-27 uses the new payment codes; earlier years use the 1961 Act sections.

  2. 2

    Choose the return form: Form 140 (old 26Q) for residents, Form 144 (old 27Q) for non-residents or Form 143 (old 27EQ) for TCS.

  3. 3

    Pick the payment code that matches the payment. The calculator shows its section under the new Act, the old section, the rate and the threshold.

  4. 4

    Enter the payee’s PAN (if you have it) and the payment amount, then calculate.

TDS formula (tax year 2026-27)

TDS = Payment amount × rate for the payment code

No valid PAN (TDS): rate = higher of the code rate or 20% (5% for codes 1031 and 1035)

No valid PAN (TCS): rate = higher of 2 × code rate or 5%, capped at 20%

Non-resident (Form 144): TDS + surcharge + 4% cess

Net payment to payee = Payment amount − TDS

Most codes apply only above a yearly or per-payment threshold, shown under the code. Rent paid, property bought, contract fees and virtual digital assets bought by individuals or HUFs not under audit are reported in the Form 141 challan-cum-statement under Section 393(1) (old sec. 194IA / 194IB / 194M / 194S). TDS on payments to residents is generally deducted on the amount before GST when GST is shown separately.

Worked example

  • A company pays a professional ₹1,00,000 as fees in July 2026. The payment code is 1027 — Section 393(1) [Table: Sl. No. 6(iii).D(b)] (old sec. 194J(b)) — at 10%, so TDS is ₹10,000 and the professional receives ₹90,000.
  • If the professional has not given a valid PAN, TDS is deducted at 20%, i.e. ₹20,000.
  • Had the payment been for technical (not professional) services, code 1026 at 2% applies instead — TDS ₹2,000.

Old section to new payment code — common payments

The Income-tax Act, 2025 replaced the separate 194-series sections with three sections: Section 392 (old sec. 192) for salary, Section 393 (old sec. 193–196D) for all other TDS and Section 394 (old sec. 206C) for TCS. Returns and challans quote the payment code instead of the old section number.

  • 194C contract work → 1023 (individual / HUF, 1%) or 1024 (others, 2%)
  • 194J technical services → 1026 (2%); professional fees → 1027 (10%); director fees → 1028 (10%)
  • 194H commission → 1006 (2%); 194D insurance commission → 1005
  • 194I rent → 1008 (plant & machinery, 2%) or 1009 (land & building, 10%)
  • 194A interest → 1020 (bank, senior citizen), 1021 (bank, others) or 1022 (others), all 10%
  • 194Q purchase of goods → 1031 (0.1%); 194O e-commerce → 1035 (0.1%); 194T partners → 1067 (10%)
  • 195 non-residents → 1057; 206C(1H) TCS on sale of goods has been removed

After you deduct TDS

Deposit the TDS by the 7th of the next month (30 April for tax deducted in March), file the quarterly return (Form 140, 144 or 143) and issue TDS certificates. Late deposit attracts interest and a late return attracts a fee of ₹200 a day — use the related calculators below.

Frequently asked questions

From tax year 2026-27 each nature of payment has a four-digit code (1001–1092) that replaces the old section number in challans and returns: 1001–1004 for salary under Section 392 (old sec. 192), 1005–1067 for other TDS under Section 393 (old sec. 193–196D), and 1068–1092 for TCS under Section 394 (old sec. 206C).