TDS Calculator

If your business pays contractors, professionals, rent or commission, you are usually required to deduct tax at source (TDS) before paying, deposit it with the government, and report it in your quarterly TDS return. Getting the rate wrong cuts both ways: deduct too little and you face interest and disallowance of the expense; deduct too much and your vendor chases refunds. This calculator applies the correct rate for the most common sections and shows the TDS amount and the net you actually pay the party.

The rates covered: 194C contractor payments at 1% when the payee is an individual or HUF and 2% for companies and firms; 194J professional and technical fees at 10%; 194I rent at 10% for land or buildings and 2% for plant and machinery; 194H commission or brokerage at 2%; and 194A interest at 10%. Each section also has an annual threshold below which no TDS applies — for example ₹30,000 per contract (₹1 lakh yearly) under 194C and ₹50,000 a year for professional fees — so small payments may be exempt.

Remember two general rules: if the payee doesn't give you a PAN, TDS jumps to 20% under section 206AA, and TDS is deducted on the amount excluding GST when the GST is shown separately in the invoice. This calculator assumes a valid PAN and applies the rate to the amount you enter.