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FreeTDS CALCULATOR

TDS Calculator (194C, 194J, 194I, 194A, 194H, 194Q)

Compute Tax Deducted at Source for contractor payments, professional fees, rent, interest, commission and purchases.

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Tax Deducted at Source is the part of a payment you hold back and deposit with the government on the payee's behalf. Get it wrong — deduct too little, miss a threshold, or pay late — and the expense can be disallowed at 30% under Section 40(a)(ia), with interest and late fees on top. This calculator covers the sections small businesses meet every month — 194C contractors, 194J professional and technical fees, 194I rent, 194A interest, 194H commission, 194Q purchases — with the FY 2026-27 thresholds, the individual/HUF rate variants, and the 20% no-PAN rule.

Rates and thresholds for FY 2026-27

SectionPaymentRateThreshold
194CContractors, sub-contractors, job work, advertising, transport1% (individual/HUF payee), 2% (others)₹30,000 per contract or ₹1,00,000 aggregate in the year
194JProfessional fees (CA, lawyer, doctor, consultant)10%₹50,000 per year
194JTechnical services, call centres, royalty on films2%₹50,000 per year
194IRent — land, building, furniture10%₹6,00,000 per year
194IRent — plant, machinery, equipment2%₹6,00,000 per year
194AInterest other than on securities10%₹10,000 (₹50,000 from banks; ₹1,00,000 for senior citizens from banks)
194HCommission or brokerage2%₹20,000 per year
194QPurchase of goods (buyer turnover > ₹10 crore)0.1% on the amount above ₹50 lakh₹50 lakh per seller per year

Without a valid PAN the rate rises to 20% (Section 206AA). Individuals and HUFs must deduct under 194C/194J/194H only if their business turnover exceeded ₹1 crore (₹50 lakh for professionals) in the previous year; individuals paying rent above ₹50,000 a month use 194-IB at 2% instead. The complete list with the changes brought by the Income Tax Act 2025 is in TDS rates and thresholds for FY 2026-27.

How to use the calculator

  1. Choose the section and, where relevant, the type (professional vs technical, building vs machinery).
  2. Enter the payment and any earlier payments to the same payee this year — the threshold is tested on the aggregate.
  3. For 194C, tick whether the payee is an individual or HUF (1% instead of 2%).
  4. Untick "PAN furnished" if you do not have a valid PAN on file, to see the 20% figure.
  5. Read the TDS amount and the net payable; deposit the TDS by the 7th of the next month (30 April for March deductions).

Deposit, return and certificate deadlines

  • Deposit: 7th of the following month via challan ITNS 281 (March: 30 April).
  • Quarterly return: Form 26Q by 31 July, 31 October, 31 January and 31 May.
  • Certificate: Form 16A within 15 days of the return due date.
  • Interest: 1% per month for late deduction, 1.5% per month for late deposit; late-filing fee ₹200 per day under 234E.

Set reminders alongside GST dates using the GST filing calendar and the business days calculator.

Situations that trip people up

  • GST on the invoice: deduct TDS on the amount excluding GST when the GST is shown separately (Circular 23/2017).
  • Reimbursements: no TDS on pure reimbursements billed separately with supporting bills; TDS applies if they are lumped into the fee.
  • 194C vs 194J: a printer supplying printed material on your specification is a contractor (194C); a designer creating the artwork is a professional (194J).
  • Rent to more than one co-owner: the ₹6 lakh threshold applies per owner.
  • Lower-deduction certificate: honour Form 13 certificates at the stated rate; verify them on TRACES.
  • Section 194Q and 206C(1H): when both could apply, the buyer's 194Q prevails and the seller does not collect TCS.
  • Purchase order — state TDS treatment in payment terms.
  • GST invoice — invoices that show GST separately so TDS is computed on the right base.
  • Rent receipt — for 194-IB rent by individuals.

Buying property from an NRI no longer needs a TAN — the PAN-based Form 141 route started on 1 October 2026: TDS on property purchase from an NRI.

Frequently asked questions

Do I deduct TDS on the GST part of an invoice?

No. When GST is charged separately on the invoice, TDS is deducted on the value excluding GST.

What if the vendor does not give a PAN?

Deduct at 20% (or the section rate if higher). Also, such vendors cannot claim credit easily, so most will produce a PAN quickly.

I run a small proprietorship. Must I deduct TDS on a contractor?

Only if your turnover in the previous financial year exceeded ₹1 crore for business (₹50 lakh for a profession). Below that, 194C/194J/194H do not apply to you, though 194-IB (rent above ₹50,000 a month) still does.

When is TDS due?

By the 7th of the month after deduction, and 30 April for deductions made in March. Late deposit attracts 1.5% interest per month.

What happens if I forget to deduct?

The expense can be disallowed at 30% in your tax computation, plus interest at 1% per month until deduction and the demand under Section 201. Deducting and depositing later, with interest, restores the deduction in the year of deposit.