TDS calculator
Check the applicable Tax Deducted at Source (TDS) rate, annual exemption threshold, and net vendor payout across major Income Tax sections.
Per CBDT Circular No. 23/2017, TDS is deducted on the taxable invoice value excluding GST (when GST is shown separately).
Net amount payable to vendor / deductee
| Section selected | Sec 194J — Professional Services |
| Exemption threshold | ₹50,000 per financial year |
| Effective TDS rate | 10% |
| Gross taxable bill amount | ₹75,000 |
| TDS to deduct & deposit | ₹7,500 |
TDS deducted during a month must be deposited via Challan ITNS 281 by the 7th of the following month (30 April for March deductions). Late deduction attracts interest at 1% per month, and late deposit after deduction attracts interest at 1.5% per month under Section 201(1A).
Key TDS rules to remember
Deduct on Base Amount (Excl. GST): When a vendor’s tax invoice shows CGST, SGST, or IGST separately, TDS is calculated only on the taxable value before GST, not on the gross invoice total.
Higher Rate for Non-PAN / Inoperative PAN (Section 206AA): If the vendor fails to furnish a valid PAN (or if their PAN is inoperative), TDS must be deducted at the higher of the section rate or 20% (5% in the case of Section 194Q).
30% Disallowance Risk (Section 40(a)(ia)): Failing to deduct TDS or failing to deposit deducted TDS before the ITR due date results in a 30% disallowance of that expense while computing your taxable business profit.
Need help with TDS returns or a TRACES notice?
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