TDS Calculator — FY 2024-25
Calculate TDS deduction for any payment — salary, rent, professional fees, contractor payments. Updated for Income Tax Act FY 2024-25 slabs.
Select Payment Type & Amount
Without PAN, TDS is deducted at 20% or the applicable rate, whichever is higher.
TDS Breakdown
Note on Surcharge & Cess
This calculator shows basic TDS rate. Add 4% Health & Education Cess where applicable. Surcharge applies for payments above ₹50L to non-residents.Automate TDS calculation from invoices with AccuRaik.
Try AccuRaik FreeTDS Rates Quick Reference — FY 2024-25
| Section | Payment Type | Threshold | TDS Rate |
|---|---|---|---|
| 194C | Contractor (Individual) | ₹30,000 / ₹1L p.a. | 1% |
| 194C | Contractor (Company) | ₹30,000 / ₹1L p.a. | 2% |
| 194J | Professional Fees | ₹30,000 | 10% |
| 194J | Technical Services | ₹30,000 | 2% |
| 194A | Interest (Bank) | ₹40,000 | 10% |
| 194A | Interest (Others) | ₹5,000 | 10% |
| 194I | Rent — Land/Building | ₹2.4L p.a. | 10% |
| 194I | Rent — Plant & Machinery | ₹2.4L p.a. | 2% |
| 194H | Commission / Brokerage | ₹15,000 | 5% |
| 194B | Lottery / Prize | ₹10,000 | 30% |
| 194D | Insurance Commission | ₹15,000 | 5% |
| 194M | Contract (Individual, >₹50L) | ₹50L p.a. | 5% |
Without PAN: TDS deducted at 20% or applicable rate, whichever is higher.
The Definitive Guide to TDS Deduction in India
Tax Deducted at Source (TDS) is a mechanism introduced by the Income Tax Department of India to collect tax at the very source of income generation. Instead of receiving the full payment and paying tax later, the payer (deductor) withholds a percentage of the amount and deposits it directly with the government on behalf of the payee (deductee).
1. Why PAN is Crucial for TDS
Under Section 206AA of the Income Tax Act, it is mandatory for the deductee to furnish their Permanent Account Number (PAN) to the deductor. If PAN is not provided or is invalid, TDS must be deducted at a penal rate. The penal rate is the higher of:
- The rate specified in the relevant provision of the Act; or
- The rate or rates in force; or
- 20% (in most cases, except for Sections 194O, 194Q etc. where it may be 5%).
Always verify the PAN of your contractors and professionals to avoid unnecessary 20% deductions.
2. Key TDS Sections Explained
Section 194C (Contractors)
Applies to payments made for carrying out any work (including advertising, transport, catering). The rate is 1% if the payee is an Individual or HUF, and 2% for others (like Companies/Firms). No TDS if a single payment is ≤₹30,000 and the annual aggregate is ≤₹1,00,000.
Section 194J (Professionals)
Applies to fees for professional or technical services. The standard rate is 10%. However, for technical services (not being professional services), call center operators, and royalty for cinematographic films, the rate is reduced to 2%. The threshold is ₹30,000 per year.
3. Automating TDS Calculation for Businesses
For CA firms and SMB accounting departments, manually tracking thresholds (like the ₹1,00,000 annual limit under 194C) and calculating TDS on every vendor invoice is a massive bottleneck. AccuRaik's AI automation can extract line items from vendor invoices, identify the nature of the service, calculate the correct gross amount, and prepare the entry for Tally — significantly reducing the risk of TDS non-compliance and late-payment penalties.
Frequently Asked Questions
What is TDS and who deducts it?
When does TDS not apply?
What happens if TDS is not deducted or deposited?
How is TDS calculated on salary?
What is the TDS rate on rent paid?
Is surcharge and cess added to TDS?
How can a deductee claim the TDS amount back?
What is a TDS Certificate (Form 16/16A)?
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