TDS Calculator
Calculate Tax Deducted at Source across all statutory business and individual payment categories.
Applicable Rate
10%
TDS to Deduct
$7,500
Net Payable to Payee
$67,500
Deduction Status
Deductible
TDS Calculator — Tax Deducted at Source Rates & Exemption Thresholds: Calculate exact Tax Deducted at Source (TDS) under Sections 194J, 194C, 194I, 194A, 194H, with statutory threshold checks and PAN validation.
How to Use the TDS Calculator
Select Legal Section
Choose the relevant Income Tax Act section (e.g. 194J for professional fees, 194C for contractors, 194I for rent).
Input Invoice Amount
Enter the gross billing or payment amount before tax deduction.
Verify PAN Compliance
Specify whether the payee has provided a valid PAN card (failure to provide invokes Section 206AA with a 20% minimum rate).
Review TDS Breakdown
View the exact TDS withholding liability, statutory exemption check, and net payment to be remitted.
Complete Guide to Tax Deducted at Source (TDS) Compliance and Regulations
Tax Deducted at Source (TDS) is a direct taxation mechanism introduced by governments to collect tax at the very origin of income. Under Income Tax provisions, any company, enterprise, or individual required by law who makes specified payments (such as salary, professional fees, contractor charges, rent, interest, or commissions) must deduct a percentage of that payment and remit it directly to the Central Government on behalf of the payee.
Statutory exemption thresholds are critical to understand. Each TDS section specifies a minimum financial threshold below which deduction is not mandatory. For example, Section 194J exempts professional fees up to ₹30,000 per financial year, Section 194I exempts rent payments up to ₹2,40,000 annually, and Section 194C exempts individual contractor payments up to ₹30,000 per single bill or ₹1,00,000 aggregate per year. If payments stay below these statutory caps, zero TDS is deducted.
Under Section 206AA of the Income Tax Act, any person entitled to receive income on which TDS is deductible must furnish their Permanent Account Number (PAN) to the deductor. If a valid PAN is not provided, tax must be deducted at the higher of: (1) the rate specified in the relevant Act provision, (2) the rates in force, or (3) a punitive flat rate of 20%.
Timely compliance is paramount for businesses. Deductors must deposit deducted TDS into the government treasury by the 7th of the following month (and by April 30th for March deductions), file quarterly TDS returns (Form 24Q for salaries, Form 26Q for non-salaries), and issue TDS certificates (Form 16/16A) to payees for tax credit reconciliation via Annual Information Statements (AIS) and Form 26AS.
Key Benefits of Using Our TDS Calculator
Comprehensive Section Coverage
Pre-configured with official rates for Sections 194J, 194C, 194I, 194A, 194H, 194DA, and 194Q.
Section 206AA Safeguard
Automatically applies statutory 20% penal rate when PAN is not furnished by the payee.
Threshold Exemption Alerts
Evaluates statutory limits to determine whether withholding is legally mandated or exempt.
Net Invoice Disbursement
Instantly computes the exact net funds to disburse to vendors, contractors, and landlords.
Interactive Custom Mode
Input custom negotiated or lower withholding certificate (Section 197) rates instantly.
Confidential Accounting
Runs entirely in your local browser sandbox without storing commercial vendor figures.
Frequently Asked Questions
Under Section 206AA, if the payee fails to furnish a valid PAN, the deductor must withhold TDS at the highest rate among: the statutory rate, or a flat 20%.
TDS deducted during any month must be deposited to the government treasury by the 7th of the following month. For deductions made in the month of March, the deposit deadline is April 30th.
As per CBDT Circular No. 23/2017, TDS is deducted only on the basic value of services or goods, excluding the GST (CGST/SGST/IGST) component, provided GST is separately indicated on the invoice.
The deductor issues a TDS certificate (Form 16A). The payee can cross-verify this credit in Form 26AS and AIS on the Income Tax e-filing portal and claim credit or a tax refund when filing their annual income tax return.