Tax Deducted at Source (TDS) is a mechanism under the Indian Income Tax Act where a person or business responsible for making specified payments (like salary, commission, rent, professional fees) deducts tax before paying the balance.

What are the common TDS sections and rates?

Common sections include: Sec 194C (Contractors: 1% for Individual/HUF, 2% for others), Sec 194J (Professional fees: 10%, Technical service/Royalty: 2%), Sec 194I (Rent on Land/Building: 10%, Rent on Plant/Machinery: 2%), and Sec 194H (Commission: 5%).

When is TDS not applicable?

TDS is generally not deducted if the total payment to a party in a single financial year is below specified thresholds (e.g. Rs. 30,000 for Sec 194C single invoice, or Rs. 1,00,000 cumulative; Rs. 30,000 for Sec 194J; Rs. 2,40,000 for Sec 194I rent).

TDS Calculator (India)

Calculate TDS (Tax Deducted at Source) under sections 194C, 194J, 194I, 194H of the Indian Income Tax Act based on payee category and amount.

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How to Use TDS Calculator (India)

Enter the gross amount payable or invoice value (excluding GST if applicable).
Select the Income Tax Section (e.g. 194J for Professional Fees, 194C for Contractors, 194I for Rent).
Select the Payee Type (Individual/HUF or Company/Partnership Firm) as TDS rates vary by category.
Review the TDS Rate, the calculated Deducted Tax Amount, and the Net Payable Amount.

What is Tax Deducted at Source (TDS)?

TDS is an indirect tax collection mechanism regulated under the Income Tax Act, 1961. The paying authority (deductor) deducts a percentage of the payment at the source and deposits it with the Income Tax Department on behalf of the receiver (deductee).

Common TDS Sections & Thresholds

- **Section 194C (Contractors)**: Rate is 1% for Individuals/HUF and 2% for Corporate Payees. Threshold: ₹30,000 for a single transaction or ₹1,00,000 aggregate annually. - **Section 194J (Professional Services)**: Rate is 10% for professional services/director fees and 2% for technical services/call centres. Threshold: ₹30,000 annually. - **Section 194I (Rent)**: Rate is 10% for land/building rent and 2% for plant/machinery leasing. Threshold: ₹2,40,000 annually.

Frequently Asked Questions

What is TDS?: Tax Deducted at Source (TDS) is a mechanism under the Indian Income Tax Act where a person or business responsible for making specified payments (like salary, commission, rent, professional fees) deducts tax before paying the balance.
What are the common TDS sections and rates?: Common sections include: Sec 194C (Contractors: 1% for Individual/HUF, 2% for others), Sec 194J (Professional fees: 10%, Technical service/Royalty: 2%), Sec 194I (Rent on Land/Building: 10%, Rent on Plant/Machinery: 2%), and Sec 194H (Commission: 5%).
When is TDS not applicable?: TDS is generally not deducted if the total payment to a party in a single financial year is below specified thresholds (e.g. Rs. 30,000 for Sec 194C single invoice, or Rs. 1,00,000 cumulative; Rs. 30,000 for Sec 194J; Rs. 2,40,000 for Sec 194I rent).