⌘K
GETTING STARTED
FIND — Get an Idea
VALIDATE — Hit PMF (Phase 3)
UNIT ECONOMICS — First (Phase 4)
SCALE — Build to ₹1L/mo
AI & AUTOMATION
ANALYTICS & DATA
FINANCE
TOOLS & CALCULATORS
RESOURCES
Finance
1%
TDS on Suppliers
Under Section 194Q
10%
TDS on Professional Fees
Under Section 194J
Quarterly
Filing
File TDS returns every quarter
Form 16/16A
Required
Issue certificates to deductees
| Payment Type | TDS Section | TDS Rate | Threshold |
|---|---|---|---|
| Goods Purchase (Suppliers) | 194Q | 0.1% (if ITC claimed), 1% (no ITC) | Purchases exceeding ₹50L/year from a single supplier |
| Professional Fees | 194J | 10% | Payments exceeding ₹30K/year to a single professional |
| Contractor Payments | 194C | 1% (individual/HUF), 2% (others) | Payments exceeding ₹30K/contract or ₹1L/year |
| Rent | 194I | 10% (plant/machinery), 2% (rent w/equipment) | Rent exceeding ₹2.4L/year |
| Commission/Brokerage | 194H | 5% | Payments exceeding ₹15K/year |
| Technical Services | 194J | 2% | Payments exceeding ₹30K/year |
1. Supplier payments (Section 194Q): If your total purchases from a single supplier exceed ₹50L in a financial year, you must deduct 0.1% TDS on all future payments to that supplier. This applies to most D2C brands buying inventory.
2. Freelancer/professional payments (Section 194J): Deduct 10% TDS on any payment to freelancers, consultants, or professionals exceeding ₹30K in a year. This includes designers, developers, accountants, and marketing agencies.
3. Contractor payments (Section 194C): Deduct 1-2% TDS on payments to contractors for services like packaging, fulfillment, and logistics exceeding ₹30K per contract.
4. When to deduct: Deduct TDS at the time of credit or payment, whichever is earlier. Don't wait until payment — deduct when you book the invoice.
5. Penalty for not deducting: If you fail to deduct TDS, the expense is disallowed under Section 40(a)(i), and you pay 30% more tax on that amount. Don't skip TDS.