What TDS section applies to freelancers?

Most freelancers fall under Section 194J (Professional/Technical Services) with a 10% TDS rate. If you are a contractor, 194C at 1% (individual) or 2% (company) applies.

What happens if I don't provide PAN?

Without PAN, TDS is deducted at a flat 20% regardless of the applicable section rate. Always share your PAN with clients.

Is this calculator accurate for FY 2025-26?

The rates reflect current Indian Income Tax Act provisions. Always verify with your CA for the latest amendments.

TDS Deduction Calculator

For Indian freelancers — instantly calculate TDS on gross payments.

Payment Details

Gross Payment Amount (₹)

TDS Section

Professional / Technical Services§194J10%

Most common for freelancers — covers consulting, design, development, etc.

Contractor Payments§194C1%

For individual contractors (non-company). 2% if paid to a company.

Contractor Payments (Company)§194C (Company)2%

For payments made to a company or firm.

Commission / Brokerage§194H5%

Applicable to agents, brokers, and commission-based work.

Rent (Land / Building)§194I10%

For freelancers renting office space to clients.

E-Commerce Participant§194-O1%

For income through e-commerce platforms.

PAN available

If PAN is not provided, TDS is deducted at a flat 20% rate.

Enter payment amount

Fill in the gross payment and select the applicable TDS section to see the deduction.

Work out what the client withheld, and why the payment is short

The first time an Indian client pays less than the invoice, most freelancers assume a dispute. Usually it is TDS — tax deducted at source — which the client is legally required to withhold and deposit against your PAN. It is not a discount and it is not lost: it appears in your Form 26AS and is credited against your tax liability when you file. What matters is that the right section and rate were applied, because the wrong one is worth chasing.

How This Local-First Tool Works

Professional and technical services fall under Section 194J. Professional fees are generally deducted at 10%; technical services at 2%, a distinction that is frequently applied incorrectly by clients who treat all consultancy the same.
Contract work falls under 194C, at a lower rate than 194J. Whether your engagement is a professional service or a contract determines the rate, so the description on your invoice has downstream tax consequences.
Without a PAN on file, deduction jumps to a flat 20% regardless of section. If a client has withheld at that rate, the usual cause is that your PAN never reached their accounts team.
Reconcile against Form 26AS before filing. Deduction is the client's obligation but crediting it is theirs too, and tax withheld from you that was never deposited is a problem you want to discover in July rather than in an assessment.

Frequently Asked Questions

Why did my client pay less than the invoice amount?: Almost certainly TDS. Clients above a threshold are required to withhold tax on professional payments and deposit it against your PAN. Ask for the TDS certificate — Form 16A — which documents the amount and the section applied.
Do I get the deducted amount back?: It is credited against your total tax liability when you file your return. If your final liability is lower than the total deducted across the year, the difference is refunded. It is prepaid tax, not a fee.
What if the client deducted at the wrong rate?: Raise it immediately, because correcting a deposited deduction requires the client to file a revised TDS return. The most common error is applying the 10% professional rate to work that qualifies as technical services at 2%, or deducting at 20% because your PAN was missing from their records.
Does TDS apply if I am below the taxable income threshold?: Deduction still happens at source — the client cannot assess your total income. You recover it by filing a return and claiming the refund, which is why filing is worth doing even in a year when you owe nothing.

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