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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