TDS Calculator
What is TDS?
Tax Deducted at Source (TDS) is a system introduced by the Income Tax Department, where the person
responsible for making specified payments such as salary, commission, professional fees, interest, rent,
etc. is liable to deduct a certain percentage of tax before making payment in full to the receiver of
the payment.
When is TDS Deducted?
TDS is deducted at the time of making the payment or crediting the account of the payee, whichever is
earlier. The deductor must deposit the tax with the government and file quarterly TDS returns.
Common TDS Sections & Rates
Section
Nature of Payment
Threshold (₹)
Rate (Ind/HUF)
Rate (Others)
194C
Payment to Contractors
30,000 (Single) / 1,00,000 (Agg)
1%
2%
194H
Commission or Brokerage
15,000
5%
5%
194I (a)
Rent (Plant & Machinery)
2,40,000
2%
2%
194I (b)
Rent (Land & Building)
2,40,000
10%
10%
194J (a)
Professional Fees
30,000
10%
10%
194J (b)
Tech. Svcs / Call Center
30,000
2%
2%
Frequently Asked Questions
If the deductee does not provide their PAN, TDS is deducted at a higher rate, which is usually
20% (Section 206AA).
No, as per circulars, TDS under income tax is generally not deducted on the GST component if
shown separately in the invoice.
TDS deducted must be deposited by the 7th of the following month (except for March, where the
due date is usually April 30th).
What is TDS?
Tax Deducted at Source (TDS) is a system introduced by the Income Tax Department, where the person responsible for making specified payments such as salary, commission, professional fees, interest, rent, etc. is liable to deduct a certain percentage of tax before making payment in full to the receiver of the payment.
When is TDS Deducted?
TDS is deducted at the time of making the payment or crediting the account of the payee, whichever is earlier. The deductor must deposit the tax with the government and file quarterly TDS returns.
Common TDS Sections & Rates
| Section | Nature of Payment | Threshold (₹) | Rate (Ind/HUF) | Rate (Others) |
|---|---|---|---|---|
| 194C | Payment to Contractors | 30,000 (Single) / 1,00,000 (Agg) | 1% | 2% |
| 194H | Commission or Brokerage | 15,000 | 5% | 5% |
| 194I (a) | Rent (Plant & Machinery) | 2,40,000 | 2% | 2% |
| 194I (b) | Rent (Land & Building) | 2,40,000 | 10% | 10% |
| 194J (a) | Professional Fees | 30,000 | 10% | 10% |
| 194J (b) | Tech. Svcs / Call Center | 30,000 | 2% | 2% |
Frequently Asked Questions
If the deductee does not provide their PAN, TDS is deducted at a higher rate, which is usually
20% (Section 206AA).
No, as per circulars, TDS under income tax is generally not deducted on the GST component if
shown separately in the invoice.
TDS deducted must be deposited by the 7th of the following month (except for March, where the
due date is usually April 30th).