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How-to guide

How to Calculate TDS: Formula, Steps & Examples

Learn how to calculate TDS — the formula explained step by step, with worked examples and a free calculator to check your answer.

By CA Rohan Gupta, Chartered Accountant (ICAI) · Updated Jun 2026 · 2 min read

Calculating your TDS deducted is straightforward once you know the TDS formula and what each input means. This guide explains the method in plain language, walks through a manual calculation, and gives worked examples you can follow — then you can do it instantly with the TDS Calculator.

What is TDS?

The TDS calculation tells you your TDS deducted from a few simple inputs. The figure you are solving for here is the TDS deducted, expressed in INR.

The TDS formula

This calculation combines several inputs through a multi-step method rather than a single one-line formula. Enter the values below and the calculator resolves each step in order. The inputs it needs are:

  • Payment amount — a money amount. Example: ₹1,00,000.
  • Payment type (TDS section) — one of: Professional / technical fees — 194J (10%), Contractor / sub-contractor — 194C (1%), Contractor (non-individual) — 194C (2%), Commission or brokerage — 194H (5%), Rent of land/building — 194I (10%), Rent of plant/machinery — 194I (2%). Example: Professional / technical fees — 194J (10%).

How to calculate it step by step

  • Write down the payment amount (for example, ₹1,00,000).
  • Choose the payment type (tds section) (for example, Professional / technical fees — 194J (10%)).
  • Apply the formula above to get your TDS deducted.
  • Double-check the result with the TDS Calculator.

Worked examples

Example 1

Input / OutputValue
Payment amount₹1,00,000
Payment type (TDS section)Professional / technical fees — 194J (10%)
TDS deducted₹10,000
Net payment₹90,000

With payment amount of ₹1,00,000 and payment type (tds section) of Professional / technical fees — 194J (10%), the TDS deducted works out to ₹10,000.

Example 2

With payment amount of ₹2,00,000 and payment type (tds section) of Professional / technical fees — 194J (10%), the TDS deducted works out to ₹20,000.

ResultValue
TDS deducted₹20,000
Net payment₹1,80,000

Example 3

With payment amount of ₹50,000 and payment type (tds section) of Professional / technical fees — 194J (10%), the TDS deducted works out to ₹5,000.

ResultValue
TDS deducted₹5,000
Net payment₹45,000

Tips for an accurate result

  • Keep your units consistent — mixing, say, months with years or grams with kilograms is the most common source of error.
  • Round only at the very end. Rounding inputs early can shift the final answer noticeably.
  • Re-run the numbers whenever an input changes, rather than estimating from an old result.
  • Annual rates must be converted to the period you are calculating for (for example, divide an annual rate by 12 for a monthly figure).

Prefer not to do the maths by hand? — the TDS Calculator does it instantly, for free, with the formula and a worked example built in.

Continue exploring tax calculators with these tools: GST Calculator, Income Tax Calculator, HRA Calculator, Take-Home Salary Calculator, Old vs New Tax Regime Calculator.

Calculators in this guide

Frequently asked questions

Gather each input, apply the formula step by step keeping your units consistent, and round only at the end. You can verify your answer instantly with the TDS Calculator.

It uses the standard formula with exact arithmetic, so the result is correct for the inputs you enter. Bear in mind that real-world outcomes can still differ when underlying assumptions change.

The TDS deducted is expressed in INR. Make sure your inputs use matching units so the result is correct.

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CA Rohan Gupta · Chartered Accountant (ICAI)

CA Rohan Gupta is a practising Chartered Accountant advising individuals and businesses on income tax, GST and personal finance compliance in India.