TDS Calculator

Select payment type and amount

Payment Type

TDS Rate (%) Auto-filled from payment type. Edit if needed (add 25% surcharge manually if applicable)

Payment Amount (₹) (excl. GST)

TDS to Deduct

₹0.00

Payment Before TDS

₹0.00

Net Payment to Payee

₹0.00

TDS Rate Applied

Deposit to Govt

₹0.00

💡 Business Impact

Accurate TDS deduction prevents penalties and ensures compliance with Income Tax Act requirements.

Recommended Actions

✓ Deduct TDS at correct rate before payment

✓ Deposit TDS by 7th of next month

✓ Reconcile TDS with Form 26AS quarterly

✓ Issue TDS certificates (Form 16A) on time

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Formula & How It Works

TDS is deducted from the gross payment before paying the vendor or service provider.

TDS Amount = Payment Amount (excl. GST) × TDS Rate ÷ 100
Net Payment to Payee = Payment Amount − TDS Amount
Amount Deposited to Govt = TDS Amount

Important: TDS is calculated on the base amount excluding GST. The GST component is not subject to TDS under Income Tax.

Surcharge and Health & Education Cess (4%) apply for payments to non-residents and for payments above ₹50L threshold. Consult your CA for applicable surcharge.

Worked Example

Scenario: You hire a contractor company for ₹80,000 of work (excluding GST). Section 194C applies at 2%.

TDS = ₹80,000 × 2% = ₹1,600

Net to Contractor = ₹80,000 − ₹1,600 = ₹78,400

You deposit ₹1,600 to the government by the 7th of the following month.

If GST @18% is charged on the invoice (₹14,400), the contractor receives: ₹78,400 + ₹14,400 = ₹92,800 total.

When to Use This Calculator

Calculate TDS before making contractor or vendor payments
Verify if TDS has been correctly deducted on received payments
Prepare monthly TDS payment challan amounts
Train accounts team on correct TDS application rates
Cross-check CA or vendor invoices for correct TDS deduction

Frequently Asked Questions

What is TDS? +

TDS (Tax Deducted at Source) is a mechanism under the Indian Income Tax Act where the payer deducts tax from payments made to the payee and deposits it to the government.

When must I deduct TDS? +

TDS must be deducted when a payment exceeds the prescribed threshold for that payment type. Common thresholds: contractor payments above ₹30,000 per contract or ₹1,00,000 in a year; rent above ₹2,40,000 per year; professional fees above ₹30,000 per year.

What is the TDS rate for contractor payments? +

For individual/HUF contractors: 1%. For company contractors: 2% (Section 194C).

What is the TDS rate for professional fees? +

10% under Section 194J for professional or technical services.

What happens if TDS is not deducted? +

Failure to deduct TDS results in disallowance of the expense under Income Tax and interest/penalty. The payer is liable for the undeducted TDS amount.

Do I need to deduct TDS on GST? +

No. TDS under Income Tax is calculated on the base amount exclusive of GST. The GST component should not be included in TDS calculations.