⌖  Income Tax & TDS

TDS Calculator.

Apply the right section rate to a payment.

⌖ Inputs

§194J(b) — Professional fees / royalty · Professional services, royalty (other than 194J(a)), non-compete fees, director’s sitting fees.

⌖ Result

TDS to deduct

10,000

Effective rate 10% — payment crosses the §194J-PROF threshold of ₹30,000.

Gross payment

1,00,000

Less: TDS to deduct

-10,000

Net payment to deductee

90,000

⌖ §I  /  Formula

The math,
in the open.

TDS deduction is governed by Chapter XVII-B of the Income Tax Act, 1961. Each section specifies a deductor, a payee category, a threshold and a rate. Where the payment crosses the threshold, the deductor withholds tax at the prescribed rate and deposits it to the Central Government using challan ITNS-281 by the 7th of the following month (30 April for March deductions).

TDS = Payment × rate% (when payment ≥ threshold)
Without PAN: rate = max(section rate, 20%)

Several rates were revised by Finance (No. 2) Act 2024 with effect from 1 October 2024 (notably §194H, §194-IB, §194M and §194-O). Finance Act 2025 introduced §194T (TDS on payments to partners) effective FY 2025-26. The drop-down here uses the post-1-Oct-2024 rates throughout.