Should TDS be deducted on the total invoice amount including GST, or only on the base amount?

Only on the base taxable amount excluding GST. According to CBDT Circular No. 23/2017, wherever the GST component on services or goods is indicated separately on the tax invoice, TDS must be deducted only on the pre-tax amount.

What is the difference between 10% and 2% TDS under Section 194J?

Section 194J(b) prescribes 10% TDS on 'Fees for Professional Services' (legal, medical, architectural, accounting, interior design, advertising, consulting). Section 194J(a) prescribes a lower 2% TDS on 'Fees for Technical Services' (not being professional services), royalty for cinematographic films, and call center services, once payments exceed ₹30,000 in a financial year.

What are the TDS rates and limits for Contractors under Section 194C?

Under Section 194C, TDS is deducted at 1% if the contractor/sub-contractor is an Individual or HUF, and at 2% if the contractor is a Company, Partnership Firm, or LLP. TDS is triggered if a single payment exceeds ₹30,000 OR aggregate payments to that contractor exceed ₹1,00,000 in a financial year.

What happens if a vendor does not provide their PAN card?

Under Section 206AA of the Income Tax Act, if the deductee fails to furnish a valid Permanent Account Number (PAN), the deductor is legally required to deduct TDS at the higher of the regular section rate or 20% (5% in the case of Section 194O and 194Q).

By what date must deducted TDS be deposited with the government?

For non-government deductors, TDS deducted in any month (from April to February) must be deposited via Challan ITNS 281 by the 7th of the following month. TDS deducted in the month of March can be deposited up to April 30th.

India TDS Calculator — Section 194C, 194J, 194I, 194H Rates

TDS Section Under Income Tax Act

Legal, medical, architectural, accounting, software development, consulting.

Service Category / Classification

Deductee Status

Does Deductee Have Valid PAN?

Under Sec 206AA, lack of PAN mandates a flat 20% TDS rate

Current Invoice Amount (₹)

₹

Cumulative FY Billings (₹)

₹

TDS Calculation10% Applicable

Invoice Gross Value:₹50,000.00

Annual Exemption Threshold:₹30,000.00

Threshold Status:Exceeded (TDS Required)

TDS Rate:10%

TDS to Deduct & Deposit:- ₹5,000.00

Net Payable to Deductee:₹45,000.00

Deposit Timeline Reminder:

TDS deducted must be deposited with the Central Government by the 7th of the following month (or by April 30 for deductions in March).

Total Net Payout to Vendor / Contractor₹45,000.00Pay vendor ₹45,000.00, deposit ₹5,000.00 under 194J

How to Use the TDS Calculator

1
Select the applicable Income Tax Section (e.g., 194C Individual/Company, 194J Professional 10% or Technical 2%, 194I Rent, 194H Commission).
2
Enter the pre-GST invoice amount in Indian Rupees (₹).
3
Indicate whether the payee has furnished a valid PAN card (without PAN, Section 206AA mandates a 20% higher deduction).
4
Review the statutory exemption threshold status, exact TDS to deduct and deposit, and the Net Payable Amount to transfer to the vendor.

Practical Use Cases

Small Business Owners & Founders

Paying Freelancers, CAs, Lawyers & Agencies (Sec 194J / 194C)

Know whether to deduct 10% (194J Professional), 2% (194J Technical), or 1%/2% (194C Contractor) before making a bank transfer.

Accounts Payable & Finance Teams

Deducting TDS on Office Rent & Machinery Lease (Sec 194I)

Compute 10% TDS on office/building rent or 2% TDS on plant and machinery rent when annual rent exceeds ₹2,40,000.

Traders & Manufacturers

Calculating Section 194Q TDS on High-Value Goods Purchases

Calculate 0.1% TDS on purchase of goods exceeding ₹50 Lakhs from a resident seller in a financial year.

TDS Calculator Features

Popular Section Presets

Pre-configured with official rates and thresholds for 194C, 194J, 194I, 194H, 194A, and 194Q.

Threshold Verification

Notifies you whether the payment exceeds statutory annual exemption limits before deduction applies.

Clear Statutory Disclaimer

Helps accountants and small business owners compute withholding tax with full confidence.

100% Private & In-Browser

Calculations and document previews run entirely in your web browser. No financial data is ever stored on our servers.

Free for Indian Businesses

Created specifically for freelancers, consultants, shop owners, traders and MSMEs across India with zero subscription costs.

Mobile & Print Ready

Optimized for one-hand mobile input, instant copy actions, and clean A4 printable layouts.

Technical Specifications & Best Practices

✓As per CBDT Circular No. 23/2017, always enter the pre-GST base amount—TDS is never deducted on the GST component if GST is shown separately on the invoice.
✓Under Section 206AA, if the vendor fails to provide a valid PAN, TDS must be deducted at 20% (or 5% specifically for Section 194Q).
✓Individuals and HUFs are generally required to deduct TDS under 194C/194J/194I/194H only if their turnover exceeded ₹1 Crore (business) or ₹50 Lakhs (profession) in the preceding financial year.
✓Provided for quick accounting computation; always verify recent Finance Act amendments before filing quarterly Form 26Q.

TDS Calculator