TDS Calculator (Tax Deducted at Source)
Determine statutory TDS deductions and net payout amounts for vendor contracts, professional consultancy fees, bank interest, rental payouts, and brokerage commissions under Income Tax Act Chapter XVII-B.
On a ₹50,000 professional services invoice, TDS under Section 194J is deducted at 10% (₹5,000), resulting in a net payment of ₹45,000.
Payment & TDS Parameters
Calculate TDS deductions under Chapter XVII-B of the Income Tax Act.
Valid PAN Furnished?
If PAN is not provided, Section 206AA mandates a 20% penalty TDS rate.
TDS Amount Deductible
₹5,000
Net Amount Payable to Payee: ₹45,000
Gross Payment
₹50,000
Invoice value
Statutory Threshold
₹30,000
Threshold breached
TDS Percentage
10%
Normal rate
Net Bank Credit
₹45,000
After TDS deduction
Compliance Note:
TDS deducted at 10% under Section 194J (Professional Fees). Net amount payable is ₹45,000.
TDS Deductible
₹5,000
- What it is:
- An Indian Tax Deducted at Source (TDS) calculator for businesses, chartered accountants, and payees.
- What it calculates:
- Statutory TDS deduction, threshold applicability, net payable amount, and Section 206AA non-PAN penalty rates.
Key Assumptions
- Payment thresholds are checked on a single transaction or annual aggregate basis per section.
- Valid PAN is furnished unless non-PAN penalty option is selected.
- Cess is not added to domestic TDS rates under the Income Tax Act.
How it works
Statutory Thresholds: TDS is deducted only when payments exceed statutory thresholds—e.g. ₹30,000 for Section 194J/194C, ₹40,000 (₹50,000 for seniors) for Section 194A interest, and ₹2,40,000/yr for Section 194-I rent.
Section 194J Professional Services: Fees for technical services (FTS), royalty, and call centre operations attract 2% TDS, while other professional services (legal, CA, medical, consultancy) attract 10% TDS.
Section 194H Brokerage: Finance (No. 2) Act 2024 reduced TDS on commission or brokerage from 5% to 2% effective 1 October 2024.
Section 206AA Penalty Rate: If the deductee fails to furnish a valid PAN, the deductor must deduct TDS at the higher rate of 20% or twice the statutory rate.
Formula
TDS Amount = Payment Amount × Statutory Section Rate; Net Payable = Payment Amount - TDS Amount
- Payment
- = Gross invoice or contract amount
- Section Rate
- = Applicable statutory percentage (1%, 2%, 5%, 10%)
- Net Payable
- = Final cheque or bank transfer amount credited to vendor
Section 206AA mandates a 20% penalty rate if a valid PAN is not furnished by the payee.
Example calculation
₹50,000 Professional Consultancy Fee Payout u/s 194J
- Gross Invoice Amount
- ₹50,000
- Section 194J Statutory Threshold
- ₹30,000
- Applicable TDS Rate
- 10%
- TDS Deductible
- ₹5,000
- Net Cheque / Bank Transfer to Payee
- ₹45,000
Frequently asked questions
What is the TDS rate for professional fees under Section 194J?
What is the new TDS rate on commission or brokerage under Section 194H?
How does TDS affect my final income tax liability?
Related calculators
Tools that complement this calculation.
Reviewed by Pradipta Ray, Editor · Updated