TDS calculator: work out what to deduct before you release a payment
Tax Deducted at Source is tax you withhold from a payment at the moment you make it, not tax your vendor charges you. The liability is yours as the payer: you deduct the right amount, deposit it in the government’s account by the due date, and issue the vendor a certificate. Getting it wrong creates two separate problems — a short deposit with interest on your side, and a vendor who cannot claim the credit and comes back to you. This calculator gives the deduction and the net payable for a single payment, so the number on the payment advice and the number in Form 26Q are the same.
Frequently asked questions
What is the rate of TDS without PAN?
Under Section 206AA of the Income Tax Act, if the payee does not provide a valid PAN, TDS is mandatorily deducted at 20%.
Which sections are covered in this TDS calculator?
This tool covers Section 194C (Contractors), 194J (Professional / Technical fees), 194I (Rent of building / plant), 194H (Commission), and custom rates.
What is the TDS rate under Section 194C (Contractors)?
For transport contractors, TDS is 1% with PAN. For other contractors, it is 2% with PAN. If no PAN is provided, the rate jumps to 20% under Section 206AA.
What is the TDS rate under Section 194J (Professional fees)?
TDS is 10% on professional fees, technical fees, royalty and remuneration to non-employees when a valid PAN is available.
How is the net payable amount calculated?
The net payable is simply the gross bill amount minus the TDS deducted. This is the amount you actually pay to the vendor after withholding tax.
When must the TDS be deposited with the government?
TDS must generally be deposited by the 7th of the month following the deduction (30 April for the March quarter). Quarterly TDS returns must also be filed on Form 26Q.
The rate for my section is not listed. What should I do?
If your payment type is not covered by the preset sections, use the tool with a custom rate — but confirm the exact rate from the Income Tax Act or a CA. For clarity, email rautprajwal36@gmail.com.