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AI-PoweredSec 194 SeriesUpdated for Latest Income Tax (Budget 2024 / Sec 115BAC) & GST Rules · 100% Free

TDS Calculator

Calculate Tax Deducted at Source for Sec 194C, 194J, 194I, 194H, 194Q & 194A with PAN validation and Challan 281 dates.

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TDS Rate & Deduction Calculator

Updated for FY 2025-26 & 2026-27 including Budget 2024 Section 194H/194IB rate cuts

1% for Individuals/HUF, 2% for Corporate entities. Applies if single bill > ₹30k or yearly aggregate > ₹1L.

194C Calculation Result

TDS Deductible: ₹500

TDS Rate Applied

1%

Standard statutory rate

TDS to Deposit

500

To be deposited by 7th of next month

Net Payable to Vendor

49,500

Disburse this amount to party's bank account

Important Compliance Deadlines for this TDS:
  • Deposit Due: 7th of following month (30th April for March)
  • Deposit Challan: Challan ITNS 281 (Major Head 0020/0021)
  • Quarterly Return: Form 26Q (due 31st of month following quarter)
  • TDS Certificate: Form 16A generated within 15 days of return

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TDS & Withholding Tax Auditor

Section 194 Series Compliance Specialist · Digital Bharat Law

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Statutory Guide & Methodology

Understanding TDS Calculator

Tax Deducted at Source (TDS) is a mechanism introduced by the Income Tax Department to collect direct tax at the very point of income generation. The deductor (payer) must withhold a specified statutory percentage from the payee's bill and remit it to the Central Government via Challan ITNS 281.

Different expenditure categories are governed by specific sections of the Income Tax Act, such as Section 194C (contractors), Section 194J (professional/technical fees), Section 194I (rent), and Section 194H (brokerage).

Core Calculation FormulaOfficial Rule
TDS Amount = Payment Amount × Statutory Section Rate | Net Payable = Gross - TDS
Sec 194C (Contractor): 1% for Individuals/HUFs; 2% for Corporate entities (Threshold: ₹30k single / ₹1L annual)
Sec 194J (Professional): 10% for professional fees, royalty; 2% for technical services / call centers (Threshold: ₹30,000)
Sec 194I (Rent): 10% for land & building; 2% for plant & machinery (Threshold: ₹2,40,000 p.a.)
Sec 194H (Commission): 2% statutory rate (Budget 2024 reduced from 5%, Threshold: ₹15,000)
Sec 206AA Penalty Rate: Flat 20% TDS if payee does not furnish a valid PAN card

* TDS must be deposited by the 7th of the following month (and 30th April for March deductions).

Key Regulatory Rules & Thresholds (FY 2025–27)

Essential departmental provisions, tax brackets, and statutory compliance mandates.

Budget 2024 Rate Rationalization

Budget 2024

Section 194H (commission/brokerage) and Section 194-IB (rent by individuals) rates reduced to 2% to ease working capital.

Section 206AB Higher Rate for Non-Filers

Sec 206AB

Higher TDS rate (twice the normal rate or 5%) applies to payees who haven't filed ITR in the preceding year with TDS > ₹50,000.

Section 194Q & 206C(1H) Goods Purchase

Sec 194Q

0.1% TDS on aggregate purchase of goods exceeding ₹50 Lakhs from a single supplier in a financial year.

Form 26Q & 24Q Quarterly Filing

Quarterly Due

Deductors must file quarterly TDS returns in Form 26Q (non-salary) and 24Q (salary) to credit tax in payee's Form 26AS/AIS.

Frequently Asked Questions

Authoritative answers to common questions and search queries verified by Chartered Accountants.

Chartered Accountant Advisory

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