TDS Calculator
Calculate TDS on interest, dividends, contractor payments, rent, commission and professional fees with section-wise rates.
India-specific calculator. It uses Indian rules, rates and rupee amounts, and the currency selector is switched off on this page.
This TDS calculator works out Tax Deducted at Source on common payments under the Income Tax Act. Choose the applicable section, the type of payee and whether PAN is available, and it applies the correct rate to show the TDS and the net amount payable.
How to use the calculator
- Enter the payment amount from which tax must be deducted.
- Choose the TDS section that applies to the payment — for example 194J for professional fees or 194I for rent.
- Select the payee type: individual/HUF or a company/firm. A few sections use different rates for each.
- Say whether the payee has furnished PAN — if not, the higher 20% rate usually applies.
- Press Calculate TDS to see the deduction, the rate and the net payment.
Common TDS sections and rates
194 — Dividend — 10%
194C — Payments to contractors — 1% (individual/HUF) & 2% (others)
194H — Commission or brokerage — 5%
194I — Rent for plant, machinery or equipment — 2%
194I — Rent for land, building or furniture — 10%
194J — Professional or technical fees — 10%
194J — Technical services and call centres — 2%
194IA — Transfer of immovable property — 1%
194D — Insurance commission — 5%
Rates shown are the standard rates for residents. TDS is deducted at the time of payment or credit, whichever is earlier, and deposited with the government by the 7th of the following month.
Worked example
₹1,00,000 professional fee to a consultant with PAN
Section 194J rate = 10%, so TDS = ₹10,000 and the net payment = ₹90,000.
If the consultant had not furnished PAN, tax would be deducted at 20% = ₹20,000 instead.
Always check the latest rates and thresholds, as they are updated from time to time. TDS deducted is reported against the payee's PAN in Form 26AS.
Who should use this calculator
- Businesses and professionals deducting tax before paying contractors, consultants, landlords or agents.
- Freelancers checking why a client paid less than the invoice amount, and whether the deduction was correct.
- Accountants reconciling the TDS recorded in Form 26AS and the AIS before filing a return.
- Anyone who has not furnished PAN and wants to see the higher rate that applies.
Common mistakes to avoid
- Thinking the threshold applies to each payment. Most TDS thresholds work on the aggregate paid during the financial year, not on a single invoice, so the deduction may start mid-year.
- Deducting on the wrong base. TDS on professional fees applies to the gross amount, not to the profit margin, and reimbursements often form part of the payment for this purpose.
- Ignoring the no-PAN rate. If the payee has not furnished a valid PAN, tax is generally deducted at 20% or the applicable rate, whichever is higher.
- Depositing late. TDS must be paid to the government by the 7th of the following month, and late deposit attracts interest and can affect deductibility of the expense.
- Not issuing certificates. Form 16A must be issued so the payee can claim the credit; without it, reconciling their return becomes difficult.
TDS is a prepayment, not a separate tax
Tax Deducted at Source is not an extra tax — it is a payment of your income tax made in advance by whoever pays you. When you file your return, the TDS already deposited is credited against your final liability. Deduct too much and you get a refund; too little and you pay the balance.
That is why the figures in Form 26AS and the AIS matter more than the amount shown on any single invoice. Before filing, total up the TDS against your PAN and check it matches what the deductors report. Mismatches are the most common reason a refund gets held up, and they are far easier to fix before the return is filed than after.
TDS terms explained
- Threshold
- The payment level above which TDS applies for a given section. Below it, no deduction is required.
- Form 26AS
- The consolidated statement against your PAN showing all TDS, TCS and advance tax credited to you.
- AIS
- Annual Information Statement — a wider view of your financial transactions, including TDS, interest and investments.
- Form 16A
- The TDS certificate issued by the deductor for non-salary payments.
- Section 206AA
- The provision that applies a higher rate — generally 20% — when the payee has not provided a valid PAN.
Frequently asked questions
What is TDS?
TDS (Tax Deducted at Source) is income tax that the payer deducts from certain payments — such as interest, rent, commission, professional fees or contractor bills — and deposits with the government on your behalf. You receive the balance, and the TDS is credited against your final tax liability when you file your return.
What happens if I do not provide my PAN?
If the payee does not furnish a valid PAN, tax is generally deducted at the higher rate of 20% (or the applicable rate if higher) under section 206AA. Providing your PAN avoids this higher deduction and ensures the tax credit appears correctly in your Form 26AS and AIS.
Do I have to deduct TDS if the payment is below the threshold?
No. Each TDS section has a threshold — for example ₹15,000 a year for commission under 194H, or ₹30,000 for professional fees under 194J. No TDS is required if the payment stays below that limit. The threshold shown here is for the selected section and is not applied automatically by the calculator.
Can I get a refund of TDS deducted?
Yes. If your total TDS exceeds your actual tax liability for the year, you can claim a refund when you file your income tax return. The deducted amount appears in Form 26AS and the AIS, and is matched to your PAN.