TDS Calculator

When a business pays a freelancer, a landlord or a contractor in India, it often has to keep back a slice of the money and send it to the government as a credit against the payee’s tax. That is tax deducted at source. The slice depends on the type of payment, a yearly threshold under which nothing is held back, and whether the payee has a PAN. This calculator takes those three things and gives the deduction and the net payment.

How the rule is applied

Choose the type of payment from the list, enter the total you paid this person in the year, and say whether they have given a PAN. If the total is above the threshold for that section, the page deducts at the section’s rate on the whole amount, not only on the part above the threshold. The result lists the rate, the threshold, whether tax must be deducted, the amount it applies to, the TDS and the payment left after it.

The sections on the page

The list has 18 entries: two contractor rates under 194C (1 percent for an individual or HUF, 2 percent for others), professional fees at 10 percent and technical services at 2 percent under 194J, rent under 194I at 2 percent for machinery and 10 percent for land, buildings and furniture, rent paid by an individual under 194-IB, commission under 194H, interest under 194A in three variants, dividends under 194, large purchases under 194Q, e-commerce payments under 194O, virtual digital assets under 194S, property purchases under 194-IA, large payments by individuals under 194M, and winnings under 194B. The table at the bottom shows each rate, threshold and a one-line note.

A worked example

The default is a consultant paid 3,00,000 under 194J for professional fees. The threshold is 50,000, so tax applies at 10 percent on all 3,00,000, which is 30,000, and the payee receives 2,70,000. For rent of 8,00,000 a year under 194I on land or buildings, the threshold is 6,00,000, so 10 percent of 8,00,000 gives 80,000. A contractor who is an individual, with no PAN and 2,50,000 paid, is deducted at 20 percent, which is 50,000. A buyer who purchases goods worth 80,00,000 under 194Q is charged 0.1 percent only on the 30,00,000 above 50,00,000, so the TDS is 3,000.

When there is no PAN

The page switches to a rate of 20 percent, or twice the normal rate if that is higher, and prints a reminder next to the rate. Asking for a PAN before the first payment is the simplest way to avoid this. If you use the rate override box, the PAN rule still applies on top of the figure you enter.

Edge cases

A payment under the threshold shows “no” and a TDS of zero. Section 194-IA and 194B use a single-payment test rather than a yearly total, and the page marks them so. For 194C the law also triggers on a single payment above 30,000 even when the yearly total is under 1,00,000; the page tests only the yearly total, so check single invoices yourself. If the rate box is left blank, the table rate is used.

Limits

The rates and thresholds are those understood for FY 2025-26 and change with each Budget, so the page carries a warning to confirm them with the Income Tax Department. Higher rates for people who have not filed returns, certificates for a lower deduction, the due dates for depositing the tax and the quarterly TDS return are outside what the page does. It does not decide which section applies to a given payment, which depends on the nature of the work.

Related tools

• Advance Tax Calculator reduces the instalments by the TDS that was deducted from your receipts.
• Income Tax Calculator works out your full liability, against which this credit is set.
• GSTIN Validator checks the format of a supplier’s GST number before you pay an invoice.
• Invoice Generator prepares the bill whose amount the deduction is based on.