Free TDS Calculator — Tax Deducted at Source (FY 2024-25)
Calculate TDS on professional fees, contractor payments, rent, commission, and more. Covers all major sections of the Income Tax Act with latest FY 2024-25 rates.
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TDS Details
TDS Calculation
Section Reference
Section 194J
Applicable TDS Rate
10%
TDS Amount to Deduct
₹10,000.00
Net Payment to Payee
₹90,000.00
Gross ₹1,00,000.00 − TDS ₹10,000.00
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How to Use This TDS Calculator
- 1Select the Payment Type from the dropdown — choose the nature of payment (professional fees, rent, contractor, etc.) that best describes your transaction.
- 2Enter the Gross Payment Amount — the full amount before TDS deduction (excluding GST).
- 3Select the Payee Type — Individual/HUF or Company/Firm, as different rates may apply.
- 4Check or uncheck the PAN checkbox — if the payee has not furnished their PAN, a higher TDS rate applies under Section 206AA.
- 5View instant results — TDS rate, TDS amount, and net payment to the payee. Deposit TDS using Challan 281 by the 7th of the following month.
How TDS is Calculated
TDS is calculated as a flat percentage of the gross payment amount (excluding GST). The applicable rate depends on the nature of payment, the payee type, and whether a valid PAN is furnished.
TDS Amount = Gross Amount × Applicable Rate ÷ 100
Net Payment = Gross Amount − TDS Amount
No PAN Rate: max(applicable rate × 2, 20%) — Section 206AA
Note: TDS is deducted on base amount only, not on GST
| Section | Payment Type | Rate (Ind/HUF) | Rate (Company) |
|---|---|---|---|
| Sec 192 | Salary | Slab | Slab |
| Sec 194 | Dividend | 10% | 10% |
| Sec 194A | Interest (Banks/FD) | 10% | 10% |
| Sec 194B | Lottery/Prize | 30% | 30% |
| Sec 194C | Contractor | 1% | 2% |
| Sec 194H | Commission/Brokerage | 5% | 5% |
| Sec 194I | Rent (Land/Building) | 10% | 10% |
| Sec 194I | Rent (Plant/Machinery) | 2% | 2% |
| Sec 194J | Professional Fees | 10% | 10% |
| Sec 194J | Technical Services | 2% | 2% |
Worked Example
Freelancer paid ₹1,50,000 for professional services (Section 194J)
| Payment Type | Professional Fees (Sec 194J) |
| Gross Amount | ₹1,50,000 |
| Payee Type | Individual |
| PAN Furnished | Yes |
| Applicable TDS Rate | 10% |
| TDS to Deduct | ₹15,000 |
| Net Payment to Freelancer | ₹1,35,000 |
The payer deposits ₹15,000 to the government using Challan 281 by the 7th of the next month. The freelancer can claim this as TDS credit when filing their ITR.
Common TDS Mistakes to Avoid
Deducting TDS on GST amount
TDS should be deducted only on the base amount of the invoice, not on the GST component. Always separate the GST before applying the TDS rate. Many businesses incorrectly deduct TDS on the GST-inclusive total.
Not deducting TDS due to "friendly" arrangements
Even for payments to family members or known associates, TDS obligations apply to the payer. Failure to deduct TDS makes the payer a "defaulter" under Section 201 and attracts interest, penalty, and disallowance of the expense.
Missing TDS deposit deadlines
TDS must be deposited by the 7th of the next month. For March it is 30th April. Late deposit attracts interest at 1.5% per month and penalty. Always set calendar reminders and use Challan 281 for timely deposits.
Applying wrong TDS section or rate
Different payment types attract different rates and sections. For example, technical services (2%) vs professional fees (10%) are both under Section 194J but have different rates. Using the wrong rate leads to short deduction and compliance issues.
Frequently Asked Questions
Q: What is TDS (Tax Deducted at Source)?
TDS is a mechanism under the Income Tax Act where the payer deducts a specified percentage of tax from the payment before remitting it to the payee. The deducted amount is deposited with the government on behalf of the payee and reflected in their Form 26AS, which can be claimed as credit while filing ITR.
Q: Who is responsible for deducting TDS?
The payer (deductor) is responsible for deducting TDS. This could be an employer, a company paying professional fees, a landlord receiving rent above threshold, or any entity making specified payments. Individuals and HUFs not subject to tax audit are generally exempt from TDS on most payments except rent above ₹50,000/month (Section 194IB).
Q: When must TDS be deposited with the government?
TDS must be deposited by the 7th of the month following the month of deduction. For March, the due date is 30th April. Non-deposit or late deposit attracts interest at 1.5% per month under Section 201(1A) and may also attract penalties.
Q: What happens if the payee does not provide their PAN?
Under Section 206AA, if the payee does not furnish their PAN, TDS must be deducted at the higher of: (a) the applicable rate, (b) twice the applicable rate, or (c) 20%. This calculator applies this rule automatically when you uncheck the PAN checkbox.
Q: What is the TDS rate for freelancers receiving professional fees?
Under Section 194J, professional fees are subject to TDS at 10% when the payment exceeds ₹30,000 in a year. Technical services attract a lower rate of 2%. If you are a freelancer providing professional services like consulting, legal, medical, or engineering services, your clients must deduct TDS at 10% on payments above ₹30,000.
Q: How do I claim TDS credit when filing my ITR?
TDS deducted by your payers is reflected in your Form 26AS and AIS (Annual Information Statement) on the IT portal. When you file your ITR, this credit is auto-populated or can be manually entered. The TDS credit reduces your net tax payable for the year.
Q: Is TDS applicable on GST component of an invoice?
No. As per CBDT circular, TDS is to be deducted on the base amount (excluding GST). For example, if you raise an invoice for ₹1,00,000 + ₹18,000 GST = ₹1,18,000 total, TDS at 10% is deducted on ₹1,00,000 only, i.e., ₹10,000. The net payment would be ₹1,08,000 (₹1,18,000 − ₹10,000).
Q: What form is used to deposit TDS?
TDS is deposited using Challan 281 on the Income Tax e-filing portal (TIN-NSDL or incometax.gov.in). The challan must mention the correct section code (e.g., 194J for professional fees, 194C for contractors) and the nature of payment. TDS returns are filed quarterly using Form 24Q (salary) or 26Q (non-salary).
Q: Can the payee apply for a lower or nil TDS certificate?
Yes. Under Section 197, a payee can apply to the Assessing Officer for a lower or nil TDS certificate if their total income is below the taxable threshold. The certificate must be furnished to the deductor, who then deducts TDS at the rate specified in the certificate. Applications are made through Form 13 on the IT portal.
Q: What is the TDS threshold for contractor payments?
Under Section 194C, TDS is applicable if a single payment to a contractor exceeds ₹30,000, or if aggregate payments during the year exceed ₹1,00,000. If both limits are below these thresholds, no TDS is required. The rate is 1% for individual/HUF contractors and 2% for companies/firms.
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