TDS Calculator

Identify the relevant TDS section based on the nature of payment, then apply the prescribed rate to the gross payment amount (excluding GST in most cases). For instance, professional fees under Section 194J: Rs 1,00,000 invoice, TDS at 10% = Rs 10,000 deducted, Rs 90,000 paid to vendor. Issue Form 16A within prescribed time after quarterly TDS return filing. Each section has its own threshold below which TDS doesn't apply (Rs 30,000 for 194J, Rs 30,000 single payment or Rs 1 lakh aggregate for 194C, etc.). The deductor has to deposit TDS by the 7th of the following month using Challan ITNS-281.

Section 194J governs TDS on payments for professional services, technical services, royalty, and non-compete fees. The standard rate is 10% on professional services (CA, lawyer, doctor, IT consultant, architect) and 2% on technical services (effective from Budget 2020, reduced from 10%). The threshold below which TDS isn't required is Rs 30,000 in a financial year per category per payee. So if you pay your CA Rs 25,000, no TDS; pay Rs 50,000, TDS at 10% on the entire Rs 50,000, not just on the excess. PAN of payee must be on record; without it, Section 206AA applies and TDS jumps to 20%.

Section 206AA kicks in. If the payee fails to furnish a valid PAN to the deductor, TDS is deducted at the higher of: the rate specified in the relevant TDS section, the rate in force, or 20%. So a typical 10% professional fee TDS becomes 20% in the absence of PAN. If the PAN is invalid (deactivated, not linked with Aadhaar, or surrendered), the same higher 20% rate applies. The payee may struggle to claim credit while filing ITR because the TDS won't reflect correctly in their Form 26AS without a linked PAN. Always collect and verify PAN at the start of the engagement.

TDS under most income tax sections is calculated on the value of services excluding GST, provided the GST component is shown separately in the agreement and invoice. CBDT Circular No. 23/2017 clarified this for Section 194J and similar provisions. For example, an invoice of Rs 1,18,000 (Rs 1,00,000 fees + Rs 18,000 GST at 18%): TDS at 10% under 194J is Rs 10,000 (on Rs 1,00,000), not Rs 11,800. Net payment to vendor: Rs 1,18,000 − Rs 10,000 = Rs 1,08,000. The vendor claims Rs 10,000 TDS credit and pays Rs 18,000 GST through their GSTR-3B. Always check section-specific notifications; some sections compute TDS differently.

Section 194C governs TDS on contractor and subcontractor payments. Rate is 1% if payee is an individual or HUF, and 2% if payee is any other person (firm, company, LLP). Threshold: TDS doesn't apply if a single payment is below Rs 30,000 and aggregate payments in the financial year are below Rs 1,00,000. Once either limit is breached, TDS applies on the entire amount, retrospectively. For a contractor billing Rs 4,00,000 over the year (firm), TDS is Rs 8,000 (2%). Goods purchases (where the contract is for buying material rather than for work) don't attract 194C; they may attract Section 194Q for buyer-side TDS above Rs 50 lakh.

Yes. If the TDS deducted from your income exceeds your total tax liability for the year, the excess is refunded after you file your ITR. The TDS reflected in Form 26AS and AIS gets credited against your computed tax; any surplus is processed by the CPC as a refund and credited to the bank account pre-validated on the e-filing portal. Refunds typically arrive within 2-6 weeks of ITR processing under Section 143(1), with interest under Section 244A at 0.5% per month from 1 April of the AY (or date of TDS deduction) until the date of refund. File ITR early to receive the refund quickly.

TDS is tax deducted at the source by the payer (employer, client, bank) before you receive the income; you simply receive the net amount, and the TDS is credited to your PAN. Advance tax is tax you pay yourself during the year on income that didn't have TDS, like rental income, capital gains, business profit or interest above thresholds. TDS is the payer's responsibility; advance tax is the recipient's. Both feed into your final liability while filing ITR: total tax minus TDS minus advance tax minus self-assessment tax = balance payable or refundable. If TDS fully covers liability, no advance tax needed; otherwise, both apply in sequence.