Tool

TDS & TCS Checker: Do I Need to Deduct or Collect?

Check whether TDS applies to a payment to a resident, or TCS to a sale, with the rate and amount, the section under the Income-tax Act, 2025, when to deduct or collect and deposit, and the interest if you are late.

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How this check works

From 1 April 2026, TDS on payments other than salary is in the tables of section 393 of the Income-tax Act, 2025. The checker applies the limit and rate for the kind of payment, who is paying and who is being paid, for payments to residents in tax year 2026-27.

Who deducts: companies, firms and other entities, and individuals or HUFs whose business turnover was above ₹1 crore (or professional receipts above ₹50 lakh) in the previous year. Other individuals and HUFs deduct only on rent above ₹50,000 a month, on property purchases of ₹50 lakh or more, and on contract work, commission and professional fees above ₹50 lakh a year. For these, no TAN is needed: the tax is paid with Form 141.

No PAN: the rate is at least 20% (5% for purchase of goods). Late: interest of 1% a month for late deduction and 1.5% a month for late deposit, and ₹200 a day for a late statement.

TCS (section 394) is collected from the buyer, over and above the price: 2% on scrap, coal, lignite and iron ore, timber and forest produce, tendu leaves, liquor, leases of a parking lot, toll plaza, mine or quarry, and overseas tour packages; 1% on a motor vehicle or notified luxury goods above ₹10 lakh; and 2% or 20% on money sent abroad under the LRS above ₹10 lakh in a year. The seller's TCS on sale of goods above ₹50 lakh (old section 206C(1H)) no longer applies.

Salary and payments to non-residents need a case-by-case check.

Tax & Regulatory Compliance service → · What changed under the 2025 Act →

Know the old section? Look it up

Type an old section such as 194J, or a word such as rent, to see where it sits in the Income-tax Act, 2025.

Sources

Law as of 27 September 2026. Indicative, not professional advice: check the Act, the rules and the Finance Act for the year before relying on a mapping.