TDS calculator · Free
TDS calculator for bills to and from businesses
See how much TDS a customer should deduct from your bill, or you from a supplier's, and how much is actually paid. For contractor, professional and technical fees.
TDS calculator
Runs in your browser. Nothing you type is sent or saved.
The rule in short
From 1 April 2026, TDS on payments to residents is under Section 393 of the Income Tax Act, 2025 (Sections 194C and 194J of the 1961 Act before that), with the same rates: 1% for contracts with an individual or HUF and 2% for others, 10% for professional fees and 2% for technical fees. TDS applies only above the yearly thresholds, is 20% when the payee has no valid PAN, and is worked out on the bill before GST when GST is shown separately.
Rates and thresholds used
- Contract work (old 194C): 1% to an individual or HUF, 2% to others; only if one bill is over ₹30,000 or the year's total is over ₹1,00,000
- Professional fees (old 194J): 10%; only if the year's total is over ₹50,000
- Technical services, call centres (old 194J): 2%; only if the year's total is over ₹50,000
- No valid PAN: 20% (old Section 206AA)
TDS and GST
Under CBDT Circular 23/2017, when the invoice shows GST separately, TDS is worked out on the amount before GST. If GST is not shown separately, TDS applies to the whole amount. The calculator does this for you.
What the seller gets
The buyer pays the bill minus TDS and deposits the TDS with the government. The seller claims it as a credit against their own income tax, using Form 26AS or the Annual Information Statement. That is why a statement that tracks TDS separately from unpaid money matters.
How to use it
Choose the payment type
Contract work, professional fees or technical fees, and whether the payee is an individual or HUF.
Enter the bill
The amount before GST and the GST shown on the invoice, plus what was already paid this year.
Check PAN
Untick if the payee has no valid PAN. The calculator shows the TDS, the GST and the net amount to pay.
Frequently asked questions
Is TDS deducted on the GST amount?
No, when GST is shown separately on the invoice. CBDT Circular 23/2017 says TDS is deducted on the amount excluding GST in that case.
What happened to Sections 194C and 194J?
The Income Tax Act, 2025 replaced the 1961 Act from 1 April 2026. TDS on payments to residents, including contractors and professional fees, is now in Section 393, with the same rates.
What is the TDS threshold for professional fees?
₹50,000 in a financial year, raised from ₹30,000 by the Finance Act, 2025 from 1 April 2025.
What if the payee has no PAN?
TDS is deducted at 20%, or the normal rate if that is higher.
Is this tax advice?
No. It covers the common cases only. Check special cases, such as transporters with 10 or fewer goods carriages, with your CA.
Sources
- Income Tax Department: TDS rates and thresholds
- Income Tax Act, 2025 (Section 393), India Code
- CBDT Circular 23/2017: no TDS on the GST component
This page explains the rules in general terms as of November 2026. It is not tax or legal advice; check your case with your CA.
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