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TDS calculator (India)

  

Common rates for resident payees. Threshold limits (the yearly amount below which no TDS applies) are not modelled, and section numbers follow the 1961 Act that most forms still use. If the payee has no PAN, TDS is the higher of the rate and 20%. Check the current table before you deduct.

1 lakh

Does the payee have a PAN?

TDS to deduct

₹10,000

10% of ₹1,00,000. You pay the payee ₹90,000.

Paid to payee90%₹90,000TDS to the government10%₹10,000

TDS in small business and freelance payments

If you run a business or pay someone for services, you are often the tax collector without realising it. Paying a freelance designer, a chartered accountant or a landlord can trigger a TDS duty, and missing it puts the expense at risk of disallowance.

The rates are a short list worth remembering. Professional fees under section 194J carry 10%, and technical services 2%. Contractors under 194C take 1% when the payee is an individual or HUF and 2% for companies and firms. Rent of land or buildings under 194I is 10%. Commission and brokerage under 194H is 2%. Interest from sources other than a bank fixed deposit, section 194A, is 10%.

A worked case: you pay a consultant ₹1,00,000 for the month. At 10% you deposit ₹10,000 with the government and pay ₹90,000. The consultant sees ₹10,000 against their PAN in Form 26AS and credits it against their tax at filing. If they had no PAN, you would have to deduct 20%, so ₹20,000.

Rates and limits do change, and the Income-tax Act is being re-numbered, so use this as a quick estimate and confirm against the current table before you deduct. Late deduction costs 1% interest per month, and late deposit 1.5%.

Sources

What this calculator does not account for

  • Yearly threshold limits for each section.
  • Lower-deduction certificates and surcharge.
  • Rate changes in the latest Finance Act.

How this is calculated

Formula: Tax deducted at source

TDS =amount × rate; payee receives amount − TDS

What the symbols mean

  • rateThe percentage set for that kind of payment.
  • no PANIf the payee gives no PAN the rate is the higher of the normal rate and 20%.

Good to know

  • Most sections only apply above a yearly threshold, which this tool does not model.
  • The payee can claim the deducted amount as credit when they file their return.

Read the full methodologyFound an error? Contact us

Worked examples

Each example is worked out by the same code as the calculator above.

₹1,00,000 professional fee

10% TDS is ₹10,000. The consultant receives ₹90,000.

Same fee, no PAN

TDS at 20% is ₹20,000 and the payee gets ₹80,000.

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Questions

What is TDS?

Tax Deducted at Source. The person making certain payments keeps back a small share and deposits it with the government in the payee's name.

What if the payee has no PAN?

The deduction is at 20%, or the normal rate if that is higher. That is why contractors and freelancers are asked for a PAN before the first payment.

Is there a minimum amount before TDS applies?

Yes, most sections have a yearly limit. For example, rent under a set amount in the year, or professional fees below a set amount to one person, may be exempt. Check the current limit.

When do I deposit the TDS?

By the 7th of the next month, and for March, by 30 April. You also file a quarterly TDS return.