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TDS Calculator — Professional & Contractor Payments

Estimate the tax deducted at source (TDS) on a professional/technical services payment (§194J) or a contractor/sub-contractor payment (§194C), and see the net amount payable after deduction. Pick the section and payee type, enter the payment amount, and get the TDS amount instantly.

§194J applies a flat 10% regardless of payee type.

Applicable TDS rate
10%
TDS amount
₹10,000
Net payable
₹90,000

How this is calculated

TDS amount = Payment amount × applicable rate. Under §194J, fees for professional or technical services attract a flat 10% TDS. Under §194C, payments to a contractor or sub-contractor attract 1% when the payee is an individual or HUF, and 2% for any other payee (company, firm, LLP, etc.). If the payee's PAN is not furnished, §206AA requires TDS at the higher of the normal rate, 20%, or the rate in force — this tool applies a 20% floor in that case. Net payable is simply the payment amount minus the TDS deducted.

  • §194J (professional/technical fees): 10% flat, subject to a threshold below which TDS need not be deducted.
  • §194C (contractor payments): 1% (individual/HUF) or 2% (others), subject to per-payment and aggregate annual thresholds.
  • §206AA: no-PAN deductions are made at the higher of the applicable rate or 20%.

Sources & legal basis

  • Income-tax Act, 1961 — §194J (fees for professional or technical services).
  • Income-tax Act, 1961 — §194C (payments to contractors and sub-contractors).
  • Income-tax Act, 1961 — §206AA (higher TDS rate where PAN is not furnished).

Rates, threshold limits and the AY to which they apply are revised from time to time by the Finance Act. This calculator uses indicative rates and thresholds — confirm the figures applicable to your assessment year with a chartered accountant or tax advisor before deducting or remitting TDS.

Frequently asked questions

Fees for professional or technical services attract a flat 10% TDS under §194J, regardless of whether the payee is an individual, firm or company.

Payments to a resident contractor or sub-contractor attract 1% TDS when the payee is an individual or HUF, and 2% when the payee is any other person (company, firm, LLP, etc.).

Yes. Under §194J, no TDS applies if the amount paid or credited does not exceed ₹30,000 in the year. Under §194C, no TDS applies to a single payment up to ₹30,000, provided the aggregate paid to that payee in the year does not exceed ₹1,00,000. Once either threshold is crossed, TDS applies. Confirm current limits for your AY.

Under §206AA, TDS must then be deducted at the higher of the normal applicable rate, 20%, or the rate in force — whichever is higher. This calculator applies a 20% floor when you select "PAN not furnished".

Track TDS and fees on every invoice, automatically

CaseDocker Billing keeps professional fees, contractor payments, applicable TDS and GST together on every invoice — so nothing is miscalculated or missed at reconciliation time.

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