Freelancer & Contractor TDS Calculator
Calculate exact Tax Deducted at Source (TDS), net bank settlement, and GST component under Section 194J (10% / 2%), Section 194C (1% / 2%), Section 194H (5%), and Section 194I.
✓ CBDT Circular No. 23/2017: TDS is deducted ONLY on base amount, NOT on GST!
Base ₹75,000 − TDS ₹7,500 + GST ₹13,500
Invoice Settlement Ledger (Line-by-Line)
The client is legally obligated to deposit this TDS amount with the government by the 7th of the following month and issue you a quarterly Form 16A TDS certificate. You can verify this credit inside your Income Tax Portal under Form 26AS or Annual Information Statement (AIS) and adjust it against your final tax liability or claim a full tax refund.
Income Tax TDS Sections & Rates Matrix (FY 2025–26)
Official statutory rates, threshold exemptions, and payee classifications under Chapter XVII-B.
| Section | Payment Nature | Payee Category | TDS Rate | Annual Exemption Threshold |
|---|---|---|---|---|
| 194J(a) | Professional Services (CA, Legal, Design, Consulting) | All Payees | 10% | ₹30,000 / FY |
| 194J(b) | Technical Services (Software, IT, BPO) & Royalty | All Payees | 2% | ₹30,000 / FY |
| 194C | Payments to Contractors & Subcontractors | Individual / HUF | 1% | ₹30,000 (Single) / ₹1,00,000 (FY) |
| 194C | Payments to Contractors & Subcontractors | Company / Firm / LLP | 2% | ₹30,000 (Single) / ₹1,00,000 (FY) |
| 194H | Commission or Brokerage | All Payees | 5% | ₹15,000 / FY |
| 194I(a) | Rent of Plant, Machinery or Equipment | All Payees | 2% | ₹2,40,000 / FY |
| 194I(b) | Rent of Land, Building or Furniture | All Payees | 10% | ₹2,40,000 / FY |
💡 TDS Compliance & Tax Planning: Calculate your net business income after tax deductions using our In-Hand Salary Calculator, generate compliant billing documents with our GST Invoice Generator with UPI QR, and plan your quarterly advance tax installments with the Advance Tax & Penalty Calculator.
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