Free · Income tax

TDS calculator — rates, thresholds and net payment

Pick a section, enter the payment, and see the TDS to deduct and the net payable.

No signup required Nothing leaves your browser Updated for FY 2025-26

TDS is deducted on the taxable value, not on GST shown separately

Without PAN, section 206AA forces a minimum 20%

TDS to deduct

Section194J
Applicable rate10%
TDS amount₹10,000.00
Net payable to vendor₹90,000.00

Threshold: Applies once annual payment crosses ₹50,000.

Deposit by the 7th of the following month (30 April for March deductions).

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Who has to deduct TDS

Any business liable to a tax audit, every company and firm, and in some cases individuals, must deduct tax at source before making specified payments. The deduction happens at the earlier of credit to the payee's account or actual payment — booking a provision at year end also triggers it.

Once deducted, the tax must be deposited by the 7th of the following month (30 April for March), and a quarterly TDS return in Form 26Q or 24Q must be filed. Failure to deduct costs you 1% interest per month; failure to deposit after deducting costs 1.5% per month plus prosecution exposure.

The PAN rule that catches people out

If the payee does not furnish a valid PAN, section 206AA forces deduction at the higher of the normal rate, 20%, or the rate in force. For a ₹5,00,000 professional fee that turns a ₹50,000 deduction into ₹1,00,000, and the vendor cannot claim credit for it either.

Always collect PAN and confirm it is linked to Aadhaar before the first payment. An inoperative PAN is treated as no PAN for TDS purposes.

Frequently asked questions

What is the TDS rate on professional fees?

10% under section 194J once annual payments to that professional cross ₹50,000. Technical services and call-centre payments attract 2%.

What if I deduct TDS but pay it late?

Interest at 1.5% per month or part of a month applies from the date of deduction to the date of deposit, and the expense can be disallowed until the tax is paid.

Is TDS deducted on the amount including GST?

No. Where GST is shown separately on the invoice, TDS is deducted only on the taxable value, not on the GST component.

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