TDS Calculator.
Pick the section, enter the payment and whether the payee has a PAN. We apply the FY 2025-26 rate and threshold, show the TDS to deduct, the net amount to pay, and the rule in plain words. Runs entirely in your browser.
Rates and thresholds as of FY 2025-26 (from 1 April 2025). Verify against the current CBDT notifications before deducting.
Enter the taxable value excluding GST when GST is shown separately on the invoice (CBDT Circular 23/2017). All maths runs in your browser.
What you'll get.
A real example of what this tool produces. Run it above with your own inputs.
Once a business is liable for tax audit, or is a company, LLP or firm, it must deduct tax at source on many routine payments: the contractor who does job work, the CA or lawyer who bills a fee, the agent who earns a commission, the landlord of the office, and for larger buyers, the supplier of goods. Each of these has its own section, rate and threshold, and the Finance Act 2025 changed several of the thresholds from 1 April 2025. Deducting too little makes the payer liable for the shortfall with interest; deducting too much annoys the payee who then waits for a refund.
This calculator covers the sections a small or mid-sized business meets most: 194C, 194J for professional and technical fees, 194H, 194-I for both kinds of rent, 194-IB for individuals paying high rent, 194Q for goods purchases and 194A for interest. Choose the section, enter the amount excluding GST, tell it whether the payee is an individual and whether a PAN has been furnished, and it returns the TDS, the net amount to pay, and the rule in plain words, including the due date for deposit and the form to file.
Rates and thresholds are current for FY 2025-26. Tax law changes each Budget, so treat the note under the calculator seriously: confirm against the CBDT rate chart before you deduct.
How to use the tds calculator
Select the section that matches the payment. If you are unsure whether a payment is contractual (194C) or professional (194J), read the FAQ below; the distinction changes the rate from 1 or 2 percent to 10 percent.
Enter the amount excluding GST. When the invoice shows GST separately, TDS is on the value before GST.
Say whether the payee is an individual or HUF (this changes the 194C rate) and whether they have furnished a PAN.
Leave the threshold option on automatic to test this payment against the limit, or choose already crossed if earlier payments in the year have used up the limit.
Click Calculate TDS and read the rate, the TDS, the net payable and the deposit deadline.
Why this matters for your business
The payer carries the risk. Under Section 201 a deductor who fails to deduct or deposit is treated as an assessee in default, with interest at 1 percent a month for late deduction and 1.5 percent for late deposit, and the expense can be disallowed in part under Section 40(a)(ia).
Thresholds moved in FY 2025-26. Rent went to Rs 50,000 a month, professional fees to Rs 50,000 a year, commission to Rs 20,000 and bank interest for senior citizens to Rs 1 lakh. A chart from last year is wrong now.
Payees plan cash flow on the net amount. A freelancer quoting Rs 75,000 needs to know Rs 67,500 will land in the account; this calculator gives both sides the same number.
Tips for better results
- Ask for the PAN before the first payment. Without it Section 206AA forces 20 percent and the payee cannot see the credit in Form 26AS.
- Job work, AMC, printing, catering, transport and labour supply are contracts under 194C; advice, audit, design and consultancy are professional services under 194J.
- TDS is deducted when the amount is credited or paid, whichever is earlier, so an unpaid invoice booked on 31 March still triggers TDS for that quarter.
- Individuals and HUFs not liable to audit do not deduct under 194C, 194J or 194H, but they do under 194-IB for rent above Rs 50,000 a month and 194M for contract or professional payments above Rs 50 lakh in a year.
- Sections 206AB and 206CCA, which imposed higher rates on non-filers, were removed with effect from 1 April 2025, so you no longer need to check filing status before deducting.
- File Form 26Q quarterly (31 July, 31 October, 31 January, 31 May) and issue Form 16A within 15 days of the return due date; late filing attracts Rs 200 a day under Section 234E.
Example
A real-world walkthrough
A private limited company in Ahmedabad hires a freelance brand consultant for Rs 75,000 plus 18 percent GST. The invoice shows Rs 75,000 as the fee and Rs 13,500 as GST. Consulting is a professional service, so Section 194J applies at 10 percent. The consultant has already billed Rs 40,000 earlier in the year, so the annual limit of Rs 50,000 is crossed with this invoice.
The accounts team selects 194J professional fees, enters Rs 75,000, individual payee, PAN furnished, and threshold already crossed. The calculator shows TDS of Rs 7,500 and net payable of Rs 80,000 after adding back the GST of Rs 13,500 to the Rs 67,500 net fee. The company pays Rs 81,000 to the consultant, deposits Rs 7,500 by the 7th of the next month using challan ITNS 281, reports it in Form 26Q and issues Form 16A, which the consultant uses to claim the credit in her return.
Frequently asked questions
What are the TDS rates for FY 2025-26 for common business payments?
For payments from 1 April 2025: Section 194C contractors, 1 percent for individual or HUF payees and 2 percent for others; Section 194J, 10 percent for professional fees and 2 percent for technical services, call centre payments and film royalty; Section 194H commission, 2 percent; Section 194-I rent, 10 percent for land, building and furniture and 2 percent for plant and machinery; Section 194-IB rent by non-audited individuals, 2 percent; Section 194Q purchase of goods, 0.1 percent on the value above Rs 50 lakh; Section 194A interest, 10 percent. Where the payee has not furnished a PAN, Section 206AA raises the rate to 20 percent (5 percent for 194Q). These are the rates this calculator applies; confirm them against the CBDT chart before each financial year begins.
Which TDS thresholds changed from 1 April 2025?
The Finance Act 2025 raised several limits. Rent under Section 194-I moved from Rs 2,40,000 per year to Rs 50,000 per month or part of a month. Professional and technical fees under Section 194J moved from Rs 30,000 to Rs 50,000 a year. Commission under 194H moved from Rs 15,000 to Rs 20,000. Interest under 194A from banks and post offices moved to Rs 50,000 for general depositors and Rs 1,00,000 for senior citizens, and to Rs 10,000 for other payers. Section 194C stayed at Rs 30,000 per payment and Rs 1,00,000 in aggregate. The higher rates for non-filers under Sections 206AB and 206CCA were removed altogether. The calculator uses these updated limits.
Is TDS deducted on the GST component of an invoice?
No, provided the GST is shown separately on the invoice. CBDT Circular 23 of 2017 clarified that when the GST on services is indicated separately, tax is deducted on the amount excluding GST, and the same principle is followed for goods. So on an invoice of Rs 75,000 plus Rs 13,500 GST, TDS under 194J is 10 percent of Rs 75,000, not of Rs 88,500. If an invoice shows a single inclusive figure with no GST break-up, deductors generally apply TDS to the whole amount. Enter the pre-GST value in this calculator and add the GST back when working out what to actually pay the supplier.
What is the difference between 194C and 194J for a small business?
Section 194C covers work done under a contract: job work, manufacturing with material supplied by the customer, transport, catering, advertising production, security and housekeeping, annual maintenance contracts, printing and labour supply. Section 194J covers services that need professional qualification or technical expertise: legal, accountancy, medical, architecture, engineering, interior design, IT consultancy, advertising strategy and management consulting. The practical test is whether you are paying for a task to be performed (194C) or for expert knowledge and advice (194J). The rate gap is large, 1 or 2 percent against 10 percent, and misclassifying professional fees as contract work is a common finding in TDS assessments.
Do I need to deduct TDS if the payee does not have a PAN?
Yes, and at a higher rate. Section 206AA says that when the payee does not furnish a PAN, tax is deducted at the higher of the rate in the relevant section, the rate in force, or 20 percent; for Section 194Q the higher rate is 5 percent. The payee then cannot get the credit reflected in Form 26AS because there is no PAN to map it to, so the deduction becomes a real cost to them. This is why every vendor onboarding form should collect the PAN and verify it. From 1 April 2025 the separate higher rates for non-filers under Sections 206AB and 206CCA no longer apply.
When must TDS be deposited and reported?
TDS deducted in any month must be deposited by the 7th of the following month, except for March, where the due date is 30 April. Deposit is through challan ITNS 281 on the income tax e-filing portal. Quarterly returns in Form 26Q for non-salary payments are due on 31 July, 31 October, 31 January and 31 May for the four quarters. Form 16A, the TDS certificate, must be issued to the payee within 15 days of the return due date. Individuals deducting under Section 194-IB use Form 26QC within 30 days of the end of the month of deduction and issue Form 16C; no TAN is required for that section.
Do freelancers and small proprietors have to deduct TDS on their own payments?
An individual or HUF has to deduct under Sections 194C, 194H, 194J and 194-I only if their business turnover exceeded Rs 1 crore, or professional receipts exceeded Rs 50 lakh, in the previous financial year, which is the tax audit threshold. Below that, they are outside these sections but still covered by Section 194-IB, rent above Rs 50,000 a month at 2 percent, and by Section 194M, which requires 2 percent TDS when total payments to one contractor or professional in a year exceed Rs 50 lakh. Both of these are paid using a PAN-based challan-cum-statement, so a TAN is not needed.
Does this calculator store my payment details?
No. The amount, section and payee details are used only in your browser to compute the TDS and the net amount, and nothing is saved or sent anywhere. It is a working tool for a single calculation; keep your own TDS register in your accounting software or a spreadsheet, and use this page to sanity-check a rate or explain a deduction to a vendor.
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