Accurately calculate the Tax Deducted at Source (TDS) for practically any payment in India. Our calculator comes pre-loaded with the current Income Tax Act sections, automatically applying the correct percentage so you know exactly what to deduct before making a payment.
How to use the TDS Calculator?
1. Enter the Gross Amount: This is the total invoice or payment value you owe to the party before taxes.
2. Select the Section: Choose the nature of the payment from the dropdown (e.g., Section 194J for Professional Fees at 10%).
3. Instant Net Calculation: The calculator will immediately separate the TDS amount to be deposited with the government and the final Net Payment that goes to the vendor. The net amount is also displayed in English words for direct copy-pasting onto checks or NEFT transfers.
Common Indian TDS Sections (FY 2024-25)
- Section 194J: Professional & Technical Services (10% standard, 2% for call centers/royalties).
- Section 194C: Payments to Contractors. (1% for individuals/HUF, 2% for companies). Note: Usually exempt if single payment < ₹30,000 or aggregate < ₹1,00,000.
- Section 194A: Interest other than securities (10%). For banks, the threshold is ₹40k for regular citizens and ₹50k for seniors.
- Section 194I: Rent (2% for machinery/equipment, 10% for land/building).
- Section 194H: Commission and Brokerage payouts (5%, threshold ₹15,000).
Frequently Asked Questions
Generally, TDS deducted in any particular month must be deposited to the government on or before the 7th of the following month.
Under section 206AA, if a valid Permanent Account Number (PAN) is not provided by the payee, the TDS must be deducted at a flat rate of 20%, or the prevailing rate, whichever is higher.
Generally, regular individuals do not have to deduct TDS unless they are paying rent exceeding ₹50,000 per month (Section 194-IB) or if they are subject to a tax audit under section 44AB.
You must file your Income Tax Return (ITR) at the end of the financial year. Any excess TDS deducted beyond your total tax liability will be refunded by the Income Tax Department directly to your bank account.
As per CBDT circulars, TDS should be calculated on the base invoice value excluding the "GST on services" component, provided the GST is shown separately on the invoice.