KaroDesk

TDS Calculator

When your business pays a contractor, professional, agent, landlord or lender above the threshold, you must deduct TDS and deposit it with the government. Pick the section rate or type a custom one to see the deduction and the net payment.

Deducting correctly keeps the expense allowable and avoids interest at 1% or 1.5% per month for late deduction or deposit.

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Pick a common section rate, or choose Custom and type your own below.

%

Used only when TDS rate is set to Custom.

TDS summary

TDS @ 10%Net amount payable
Gross payment
₹1,00,000.00
TDS @ 10%
₹10,000.00
Net amount payable
₹90,000.00
TDS is deducted on the value excluding GST for most sections.

You'll pay ₹90,000.00 to the payee and deposit the remaining ₹10,000.00 as TDS with the government under this section's rate.

Smart next steps

Formula

TDS = Payment amount × TDS rate ÷ 100

Net payable = Payment amount − TDS

For most sections TDS is computed on the value excluding GST, provided the GST is shown separately on the invoice.

Worked example

A ₹1,00,000 professional fee under section 194J attracts 10% TDS — ₹10,000 deducted, ₹90,000 paid to the vendor and ₹10,000 deposited by the 7th of the next month.

How to use this calculator

  1. 1Enter the payment amount, excluding GST if the tax is shown separately on the bill.
  2. 2Pick the section that fits the payment, or type the rate you have been advised to use.
  3. 3Read the TDS to deduct and the net amount to release to the vendor.

When businesses use it

  • Paying a freelancer or agency and needing to withhold tax under section 194J.
  • Settling a contractor's running bill under section 194C.
  • Releasing commission to an agent and deducting under section 194H.
  • Paying office rent above the annual threshold and deducting under section 194I.

Deducting tax at source without surprises

TDS shifts a slice of the payee's income tax to the moment the payment is made, and the obligation sits with the payer. Miss it and you face interest at 1% a month for late deduction, 1.5% for late deposit, and disallowance of 30% of the expense when you compute your own taxable profit, a cost far larger than the tax itself.

Rates depend on the nature of the payment rather than the payee. Contract work under 194C is 1% for individuals and HUFs and 2% for others, professional fees under 194J are 10% (2% for technical services), commission under 194H is 2%, rent under 194I is 2% for plant and machinery or 10% for land and buildings, and interest other than on securities under 194A is 10%. Each section carries its own annual and per-transaction threshold, so a small one-off payment may need no deduction at all.

Deduct on the value before GST when the tax is shown separately on the invoice. If the bill is a single inclusive figure with no tax break-up, TDS applies to the whole amount, one more reason to insist on properly formatted invoices from your vendors.

Compliance points to watch

  • Deposit deducted tax by the 7th of the following month to avoid interest.
  • Apply the 20% rate when the payee has not provided a valid PAN.
  • Track cumulative payments to a vendor across the year against the section threshold.
  • Issue Form 16A each quarter so vendors can claim the credit.

On the receiving end of a deduction like this instead? See TDS deducted from your freelance income for how to check it landed in your Form 26AS and claim it as credit.

Deducting under section 194H before paying an agent or partner? Work out the commission itself first with the commission calculator, then deduct TDS on that amount here.

Sources & references

The rules behind this calculator, from the official source. Rates and thresholds change — confirm the current figure on the source itself before relying on it for a filing.

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Frequently Asked Questions

Section 194J is generally 10%. Technical services are 2%, and payments to call centres are 2%.

Section 194I is 2% on rent for plant and machinery, and 10% on rent for land, buildings or furniture. It applies once rent to one landlord crosses ₹6,00,000 in a financial year (raised from ₹2,40,000 from FY 2025-26).

Section 194A is 10% on interest other than on securities — for example, interest on a loan from a non-banking lender. The threshold is ₹50,000 a year for banks, post offices and co-operative societies (₹1,00,000 for senior citizens) and ₹10,000 a year for other payers.

No. If GST is shown separately on the invoice, TDS applies only to the taxable value.

TDS must be deducted at 20% (or the higher applicable rate) when PAN is not provided.

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Calculations happen instantly in your browser. Your calculator inputs aren't sent to our servers. KaroDesk provides calculations and information for general informational purposes. Results should be verified against applicable laws, official notifications, employer policies, lender terms, or professional advice where appropriate. Read our full disclaimer.