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Free tool · TDS

What actually lands in your account.

Enter your invoice amount and section. We'll show you what hits your bank after 194J / 194C / 194O / 195 is deducted — and what you can claim back at filing.

1Your invoice

before TDS
₹

Consulting, design, legal, accounting, writing. Most common for freelancers.

12/yr

Annual view (12 invoices)

Gross billed this year₹12,00,000
Total TDS deducted₹1,20,000
Estimated income tax (44ADA, new)₹0
Likely refund at filing₹1,20,000

Your TDS shows up in Form 26AS on the Income Tax e-filing portal — every rupee is credited against your total tax at ITR filing. You've likely overpaid TDS by about ₹1,20,000 — claim it as a refund.

What is TDS?

Tax Deducted at Source. Your client withholds 10% of your invoice before paying you. It isn't extra tax — it's a pre-payment of your income tax, paid by the client on your behalf. You get full credit for every rupee when you file your ITR. The client gives you a Form 16A each quarter, and it appears in your Form 26AS.

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Worked example

Software developer — ₹1L invoice under Section 194J(b), PAN provided

Invoice amount: ₹1,00,000 (service value, GST shown separately per CBDT Circular 23/2017 — TDS is on the service value only, not the GST component).

TDS @ 10% (Section 194J(b) — professional services): ₹1,00,000 × 10% = ₹10,000 deducted by client. Net received: ₹90,000.

Annual picture (12 such invoices): Gross = ₹12L. Total TDS = ₹1,20,000. Under 44ADA, taxable income = ₹12L × 50% = ₹6L. New-regime tax on ₹6L: slab ₹10,000, 87A rebate covers it fully (₹6L < ₹12L) → total tax ₹0. Likely refund at ITR filing: ₹1,20,000.

Note on 194J(a) — technical services (2%): If your client classifies your work as technical services rather than professional services, the applicable section is 194J(a) at 2%. On the same ₹1L invoice, TDS = ₹2,000 and net received = ₹98,000. Ask your client which sub-section they used — it affects your Form 26AS reconciliation.

How this works

TDS is a pre-payment, not a tax.

What's the TDS rate for freelancers in India?
Depends on the section. 194J(a) — 2% for technical services. 194J(b) — 10% for professional services (consultancy, design, dev, legal, etc.) — this is the most common for freelancers. 194O — 1% deducted by e-commerce platforms (Upwork, Fiverr, etc.). 195 — 10–30% on foreign payments, often reduced under DTAA treaty.
Can I get TDS deducted back?
Yes. TDS is a prepayment toward your annual income tax. When you file ITR, your total tax (per regime + slabs + 44ADA) is computed; TDS already paid is credited; you either get a refund or owe the balance. Most freelancers under 44ADA get a refund.
When do I receive Form 16A from my client?
Clients must issue Form 16A within 15 days of the quarterly TDS return due date. Practically: Q1 by ~15 Aug, Q2 by 15 Nov, Q3 by 15 Feb, Q4 by 30 May. If your client hasn't sent it, ask — they're legally obligated.
My client deducted TDS under the wrong section. What now?
Ask politely for a correction. The most common error is 194C (works contract, 2%) instead of 194J (professional, 10%). It affects your refund calculation. Mention "Please correct the deduction section in your next TDS challan" — most CAs and finance teams will fix it without pushback.
Do Upwork, Fiverr, and Toptal deduct TDS in India?
Yes. Indian-resident freelancers on these platforms have 1% TDS deducted under Section 194O on every withdrawal (since FY 2020-21). The 1% applies to the gross paid to you before platform fees. This is fully creditable — when you file your ITR, claim it back as a prepayment of your final tax. Most freelancers under 44ADA get most of it back as a refund.

TDS rates per Income Tax Act. Always verify the deduction on your client's TDS certificate (Form 16A) or Form 26AS. Results are indicative; consult a CA for filing.

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Related glossary

Plain-English definitions of the terms behind this calculator.