TDS Calculator
Work out the TDS rate and amount for contractor payments, professional fees, commission, rent and interest — by section.
Threshold for this section: ₹30,000 per year. Below this, no TDS applies.
This calculator gives an indicative estimate based on standard rates and slabs. It isn't a substitute for professional advice — talk to a senior CA for a computation specific to your situation.
How TDS rates work
TDS rates depend on the nature of the payment and, in some cases, whether the payee is an individual/HUF or another type of entity. Contractor payments under Section 194C are taxed at 1% for individuals/HUF and 2% for others, while professional fees under 194J attract 10% and technical services 2%.
Threshold limits matter as much as the rate
Most sections only apply once payments to a single payee cross a specified annual threshold. Deducting TDS below the threshold, or missing deduction above it, are both common compliance errors that surface later as mismatches or disallowed expenses.
Staying compliant every quarter
Running payroll or paying vendors regularly means tracking deductions, deposits and quarterly returns across every section — our annual compliance package handles this end-to-end so nothing slips through.
Frequently asked questions
What is the threshold limit for TDS deduction?▾
Each TDS section has its own annual threshold — below it, no TDS applies. For example, 194J (professional fees) has a ₹30,000 threshold, while 194A (interest) has a ₹40,000 threshold. Once cumulative payments in a year cross the threshold, TDS applies to the full amount.
Who is responsible for deducting and depositing TDS?▾
The person making the payment (the deductor) must deduct TDS at the applicable rate, deposit it with the government by the due date, and file a quarterly TDS return reporting the deduction against the payee's PAN.
What happens if TDS isn't deducted or deposited on time?▾
Interest under Section 201 accrues from the date of default, and the expense itself can be disallowed in the deductor's own tax computation until the shortfall is deposited.
Can the payee claim credit for TDS deducted?▾
Yes — once the deductor files their TDS return, the deduction shows up in the payee's Form 26AS and AIS, and is claimed as credit against their final tax liability when filing their own return.
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