Tax Deducted at Source (TDS) is a way the Income Tax Department collects tax in advance from the payer rather than waiting for the year-end return.
About this calculator
Tax Deducted at Source (TDS) is a way the Income Tax Department collects tax in advance from the payer rather than waiting for the year-end return. If you run a business, hire contractors, pay rent above thresholds, or even pay professional fees to a CA or designer, you are likely liable to deduct TDS, deposit it to the government within seven days of month-end, and issue a TDS certificate (Form 16 for salaries, Form 16A for everything else) to the vendor.
This calculator covers the most-used non-salary sections in India. Pick the section that matches your transaction (e.g., 194C for sub-contractors, 194J for professional fees to a CA or lawyer, 194I for office rent, 194H for commission to a sales agent), enter the gross amount, and the calculator returns the TDS to deduct, the net amount payable to the vendor and the applicable threshold below which no TDS is required. The PAN toggle is critical: under Section 206AA, if the vendor does not furnish a valid PAN, you must deduct TDS at the higher of the section rate or 20%, even if the section's normal rate is lower.
A few practical notes. The thresholds shown are annual aggregate per payee, not per invoice -- so a single Rs 25,000 payment under 194C escapes TDS, but the moment cumulative payments to that vendor cross Rs 30,000 in a financial year, TDS applies to all subsequent payments. For salary (Section 192), TDS is computed on the projected annual taxable income at slab rates and divided across pay periods; use the [[income-tax]] calculator for an accurate annual slab estimate. For an end-to-end view of your monthly cash flow after tax, the [[salary]] and [[hra]] calculators help. To file the return on time, remember the quarterly Form 26Q/24Q deadlines: 31 July, 31 October, 31 January and 31 May.
Common uses
- Deducting TDS on a contractor or sub-contractor invoice (194C)
- Withholding TDS on monthly office rent above Rs 2.4 lakh annual (194I)
- Computing TDS on professional fees paid to a CA, lawyer or designer (194J)
- Salary TDS planning for the upcoming financial year (Section 192)
- Verifying the right TDS amount to challan-deposit before the 7th of next month
Frequently asked questions
What is the TDS rate for 194J professional fees in 2025?
The standard rate is 10% for most professional or technical services, regardless of payee type. Royalty for sale, distribution or exhibition of cinematographic film attracts 2%. The threshold is Rs 30,000 per payee per financial year.
Do I need to deduct TDS on a single small payment?
Only if the single payment exceeds the section
What happens if I do not deduct TDS on time?
Interest at 1% per month from the date TDS was deductible to the date it was actually deducted, plus 1.5% per month from deduction to deposit. Late filing of TDS returns also attracts a Rs 200 per day late fee under Section 234E up to the TDS amount, and the expense itself can be disallowed (30% under Section 40(a)(ia) for individuals, 100% for non-residents).
Is TDS applicable on payments to a non-resident?
Yes -- typically under Section 195 at rates specified in the IT Act or the relevant Double Tax Avoidance Agreement (DTAA), whichever is lower. Non-resident TDS is more nuanced and usually requires a tax-residency certificate (TRC) from the payee and Form 15CA/15CB compliance.
Can I lower the TDS rate if my income is below taxable limit?
Yes -- the payee can submit Form 15G (under 60) or 15H (60+) to the deductor for declaring no tax liability on bank interest, mutual fund dividends and certain other receipts. For larger or non-standard cases, apply for a lower-deduction certificate under Section 197 from the Assessing Officer.