TDS Calculator

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.

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.

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%, commission under 194H is 5%, and rent under 194I is 2% for plant and machinery or 10% for land and buildings. 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.