Freelance TDS Calculator
Free freelance TDS calculator for Section 194J (393 in the 2025 Act). See the 10% or 2% TDS your client deducts, the ₹50,000 threshold and your net receivable.
About the Freelance TDS Calculator
A freelancer TDS calculator that works out the Section 194J (now 393(1)) deduction a client withholds from your professional or technical fees — 10% or 2% — including the ₹50,000 annual threshold, the payer-type rules and the 20% no-PAN rate.
When a client pays a freelancer or consultant for professional or technical services, the payer is generally required to deduct TDS before making the payment, deposit it with the Income Tax Department, and report it in their return. The fee you invoice is not what lands in your bank account — the TDS is credited to your PAN and adjusted against your own tax, but the timing matters for your cash flow. This calculator works out the Section 194J deduction for a single payment: the category sets the rate (10% for professional services, 2% for fees for technical services), the annual aggregate in that category sets the threshold, and the result tells you the exact TDS to expect and the net amount you will actually receive.
Under the Income-tax Act, 2025 (in force from 1 April 2026), Section 194J has been renumbered as Section 393(1), Table Sl. No. 6(iii), with the same rates: professional services attract 10%, and fees for technical services (FTS) — an engagement that is managerial, technical or consultancy in nature rather than a professional service — attract 2%. No TDS is deducted while the aggregate of payments in a single category during the tax year is within ₹50,000 (raised from ₹30,000 by the Finance Act, 2025). Once that aggregate crosses ₹50,000, TDS applies to the full amount of the payment, not just the excess. Payment codes in TDS returns are 1027 for professional fees and 1026 for technical fees.
Applicability depends on the payer. Companies, firms and other non-individuals must always deduct once the threshold is crossed; an individual or HUF deducts only if their business turnover exceeded ₹1 crore or their professional receipts exceeded ₹50 lakh in the immediately preceding tax year, and never for payments made for purely personal purposes. If the payee has not furnished a valid PAN the rate rises to 20% (Section 397(2) of the 2025 Act, formerly 206AA). This calculator models the current residency threshold and applies TDS on the fee excluding separately-shown GST — payments to non-residents, royalty, call-centre and director-remuneration variants of the section are outside its scope.
How to use the Freelance TDS Calculator
- Enter your basic details in the fields provided.
- Select the appropriate options from the dropdowns.
- View your precise calculation results instantly.
Worked example
a ₹1,00,000 professional fee with ₹1,00,000 already paid to you in that category this year → the ₹50,000 threshold is crossed, so TDS = 10% of ₹1,00,000 = ₹10,000, and your net receivable is ₹90,000.
Formula
TDS = gross fee × rate (10% professional services, 2% fees for technical services). No TDS below ₹50,000 aggregate per category per tax year; once crossed, TDS applies to the full payment. Without a valid PAN the rate becomes 20%.Frequently asked questions
- What TDS rate applies to my freelance income?
- 10% if you are paid for professional services — services in the course of a legal, medical, engineering, architectural, accountancy, technical-consultancy, interior-design or advertising profession. 2% if you are paid fees for technical services (FTS) — managerial, technical or consultancy work. If you haven't furnished a valid PAN, both rates rise to 20%.
- Is there a threshold below which no TDS is deducted?
- Yes. No TDS is deducted while the aggregate of payments in a single category during the tax year is within ₹50,000 — professional and technical services are tested separately. Once the aggregate crosses ₹50,000, TDS applies to the full amount of the payment. Payments within the threshold are still your taxable income.
- Do all clients have to deduct TDS on fees over ₹50,000 a year?
- Companies, firms and other non-individual payers must. An individual or HUF client deducts only if their business turnover exceeded ₹1 crore or their professional gross receipts exceeded ₹50 lakh in the previous tax year — and never for payments for purely personal purposes. Select the payer type that matches to see whether TDS is deducted in your case.
- Is TDS calculated on the GST-inclusive amount?
- No. When GST is shown separately on the invoice, TDS under Section 194J applies to the fee excluding GST. Enter the pre-GST fee amount.
- Which section governs my fees now that the Income-tax Act 2025 is in force?
- From 1 April 2026, old Section 194J of the 1961 Act is renumbered as Section 393(1), Table Sl. No. 6(iii). Rates, the ₹50,000 threshold and the PAN rules are unchanged, and no TDS is required on payments to residents below the threshold. This calculator models the rules for Tax Year 2026-27 (AY 2027-28).
- What happens to the TDS my client deducts?
- Your client deposits it with the Income Tax Department, it appears against your PAN, and you claim it against your tax while filing your return — your tax return (ITR) follows the same calculation as the advance-tax calculator on this site, where TDS credited is subtracted from your total liability.
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