TDS calculator
The rate, the threshold, and the amount to actually deduct.
Indicative rates for resident payees with PAN; threshold limits and current-year changes not applied — verify before deducting.
Figures are indicative. Thresholds, surcharge and current-year notifications are not fully modelled — confirm edge cases with your CA.
What this calculates
TDS is deducted at the time of payment or credit, whichever is earlier, and at a rate that depends on which section the payment falls under. The rate is the easy part. The part that goes wrong is the threshold: most sections only bite once the payment crosses an annual or per-transaction limit, and a payer who deducts below the threshold irritates the payee while one who misses a crossing carries the liability personally.
How it is worked out
- 1Identify the section the payment falls under — 194C for contract work, 194J for professional or technical fees, 194I for rent, 194A for interest, 194H for commission and brokerage.
- 2Check the payment against that section's threshold, both per transaction and for the year to date.
- 3Apply the section's rate to the amount, excluding GST where the tax is shown separately on the invoice.
- 4Where the payee has not given a valid PAN, section 206AA requires the higher of the normal rate or 20%.
- 5Deposit by the 7th of the following month, and report the deduction in the quarterly return.
Worked example
₹1,00,000 of professional fees under section 194J at 10%.
- Payment
- ₹1,00,000
- TDS @ 10%
- ₹10,000
- Paid to the professional
- ₹90,000
- Deposited by the 7th
- ₹10,000
Common questions
What is the TDS rate on professional fees?
10% under section 194J for professional or technical services, subject to the annual threshold. Where the payee has not furnished a valid PAN, section 206AA requires deduction at 20%.
Is TDS deducted on the GST component of an invoice?
No, where the GST is shown separately on the invoice. TDS is deducted on the value of the service, not on the tax charged on it.
What happens if I deduct TDS but deposit it late?
Interest at 1.5% a month runs under section 201(1A) from the date of deduction to the date of deposit, counted in whole months. Deducting late rather than not at all attracts 1% a month instead.
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