TDS Calculator for Professional Services (Section 194J)
Calculate TDS (Tax Deducted at Source) on your professional fees under Section 194J. Indian companies and entities deduct 10% TDS on payments to freelancers for professional or technical services exceeding ₹30,000 per year. Use this calculator to find out how much TDS will be deducted and your net receivable amount.
Understanding TDS on Professional Services
Section 194J of the Income Tax Act mandates that any person paying professional fees to a resident must deduct TDS. This applies when paying freelancers, consultants, and other professionals.
When is TDS Deducted?
- Payment exceeds ₹30,000 in aggregate during the financial year to a single professional
- Payer is a company, firm, or individual/HUF required to get accounts audited
- Payment is for professional or technical services
TDS Rates under 194J
| Scenario | TDS Rate |
|---|---|
| With valid PAN | 10% |
| Without PAN or invalid PAN | 20% |
| Call center services (194JA) | 2% |
TDS Amount = Gross Payment × TDS Rate
Net Receivable = Gross Payment - TDS Amount
How to Claim TDS Credit
The TDS deducted by your client is a prepayment of your income tax. To claim credit:
- Ensure client deposits TDS and files TDS return
- Check Form 26AS for TDS credit reflection
- Claim credit while filing your income tax return
- If TDS exceeds your tax liability, claim a refund
Assumptions & Limitations
- Assumes payment is for professional/technical services under 194J
- Threshold of ₹30,000 is per client per financial year
- Does not cover lower TDS certificate scenarios
- Surcharge and cess on TDS not applicable for most freelancers
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