HourSlip
Sign inStart free →Start free

What actually lands in your account.

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

Your invoice

before TDS
₹

Professional fees, plus royalty, non-compete fees and director fees — the rate most clients apply to freelance professional work. From 1 Apr 2026: reported under Section 393(1) Sl. 6(iii).D(b) (rates unchanged).

12/yr

Annual view (12 invoices)

Gross billed this year₹12,00,000
Total TDS deducted₹1,20,000
Estimated income tax (if 44ADA applies, new regime)₹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.

Share your result:Share on WhatsApp

Take it with you

Take the note with you

What this client withholds and why, what it means across a year of invoices, and the conditions that change the rate — worth having on hand the next time a client applies the wrong section.

No email, no signup — the PDF downloads straight to your device.

Track TDS on every invoice — try HourSlip free →

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(b) — 10% for professional services; this is the most common for freelancers. 194J(a) — 2% for fees for technical services that are not professional services (plus call-centre work and film royalties); software work can be classified either way depending on the contract. 194C — 1% for contract work paid to an individual. 194O — 0.1% deducted by e-commerce platforms (Upwork, Fiverr, etc.), or 5% if your PAN is missing or not linked to Aadhaar; it was 1% until 30 Sep 2024. Foreign clients do not deduct Indian TDS — Section 195 applies only to payments made to non-residents. Any tax a foreign client's country withholds is foreign tax, claimed as foreign tax credit (Form 67), not as TDS.
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. If your clients' TDS exceeds your final tax — common for 44ADA filers with modest income — the excess is refunded.
When do I receive Form 16A from my client?
Clients must issue the TDS certificate (Form 16A; renumbered under the Income-tax Rules 2026 for deductions from 1 April 2026) within 15 days of the quarterly TDS statement due date: Q1 by 15 Aug, Q2 by 15 Nov, Q3 by 15 Feb, Q4 by 15 June. 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 (contract work — 1% for an individual) instead of 194J (professional, 10%). It affects your refund calculation. Ask the client to file a correction statement for that quarter's TDS return with the right section — most CAs and finance teams will fix it without pushback.
Do Upwork, Fiverr, and Toptal deduct TDS in India?
Upwork and Fiverr do — Section 194O binds e-commerce operators based outside India as well. Upwork withholds 0.1% where you have given it a valid PAN linked to your Aadhaar, and 5% where you have not; Fiverr publishes the same 0.1–5% band. The rate was 1% until 30 Sep 2024, cut by the Finance (No. 2) Act 2024. It is charged on the gross you invoice the client, before the platform takes its fee. Toptal does not currently publish an India TDS policy — check your own remittance statements. Whatever is withheld is fully creditable: claim it in your ITR against your final tax, and if it exceeds that tax the excess is refunded.

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.

Related guides

Continue your calculation

Related glossary

Plain-English definitions of the terms behind this calculator.