Section 195 TDS estimator — free calculator
Estimates the Indian deduction at source on a payment to a non-resident and the net amount the recipient receives.
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Estimates the Indian deduction at source on a payment to a non-resident and the net amount the recipient receives.
Enter your figures
An estimate for planning only. Rates and thresholds used here are the assumptions stated on this page; we confirm every figure against the issuing authority for your own tax year before anything is filed.
How the estimate is built
India applies the more favourable of the domestic rate and the treaty rate, but the treaty rate is only available if the recipient's residency certificate and India's own declaration are in hand before the payment. The remittance itself also needs the remitter declaration and, for most chargeable sums, an accountant's certificate before a bank will process it.
How to get this moving
A calculator narrows the range; it does not settle a filing. Bring last year's returns and we will tell you what is missing.
Read and approved for the 2025 and 2026 filing seasons by Udit Gupta, Cross-Border Tax Expert, Legal Quotient Consultants. Published as general information. For a position on your own file, call the 24-hour helpline.
Corporate tax calculator — what this page covers
Most readers of this page are looking for corporate tax calculator. What follows sets out how it works for Section 195 TDS estimator: who is caught by it, what has to be filed, and what the work costs, agreed before it begins.
Why choose Legal Quotient for section 195 TDS estimator calculator
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The fee is fixed before we start
Quoted from your documents and agreed in writing. The number you accept is the number you pay.
We say early if it is not our work
If a file needs something this practice does not do, you hear that at the start rather than after a bill.
The reporting penalties get named early
The heaviest exposure on a cross-border file is usually a disclosure form, not the tax. We identify which ones apply before a deadline turns into a penalty.
What these engagements turn on
Characterising a software payment before the invoice was settled
An Indian company was about to pay an overseas vendor and had assumed no deduction arose. We worked through how the sum should be characterised under domestic law, what the treaty said about that class of payment, and whether the recipient's documents actually supported the treaty rate. The engagement produced a written determination of chargeability with the reasoning set out, the rate applied on the payment, and the certification the bank required, all completed before the invoice was released.
Recovering a deduction taken at the domestic rate
A non-resident had been paid net of deduction at the domestic rate because the residency certificate reached the payer after the remittance had gone. The recipient's route was an Indian return claiming credit for the amount deducted against the liability actually due on the sum. The work was assembling the deduction certificates, matching them to the payments and filing. The engagement produced a filed Indian return with the excess deduction claimed, and a documented procedure for the payer so the certificate arrives first next time.
Unblocking a remittance the bank had refused to process
A transfer abroad had been stopped because the certification the bank expects had not been prepared. We reviewed the underlying contract, settled the characterisation of the sum, confirmed what had been deducted, and prepared the remitter's declaration and the accountant's certificate to accompany it. The engagement produced the certified documents the bank required, and a note of which payment types under that contract would need the same treatment so later instalments did not repeat the delay.
Writing a standing determination for a recurring royalty payment
A group paid a related party abroad every quarter and had been applying a rate nobody could explain. We documented the characterisation of the payments, tested the treaty position against the recipient's certificate and the declaration on file, and set out where the rate came from. The engagement produced a standing determination the finance team applies each quarter, with the two triggers for re-examining it identified, namely the expiry of the certificate and any change to the contract terms.
Regularising payments made with no deduction at all
A payer discovered that several payments abroad had gone out without any deduction and without the accompanying certification. The work was historical: identifying each payment, characterising it, establishing what should have been deducted, and quantifying both the tax exposure and the risk to the expense deduction. The engagement produced a schedule of the affected payments with the position taken on each, the amounts brought to account, and a control routing future payments through a determination before release.
Testing a treaty claim the certificate did not actually cover
A payer had a residency certificate on file and had applied the treaty rate to successive payments. Reading the certificate closely showed it was issued for a defined period which had ended partway through. We identified the payments falling outside it, set out the domestic rate that applied to those, and quantified the shortfall. The engagement produced a corrected position for the affected payments and a calendar control tying each certificate's expiry to the payments it is meant to support.
An NRI Selling Indian Property With Tax Withheld on the Price
Withholding on a sale by a non-resident is applied to the sale value rather than to the gain, so it routinely exceeds the tax due. A lower-deduction certificate obtained before completion avoids locking the difference up until a return is assessed.
Read how this one runsWhich Country Taxes the Salary
The employment article turns on where the work is done, who pays, and who bears the cost — three tests that can point in different directions. The file establishes all three before either return is drafted.
Read how this one runsAll case studies — every published engagement in one place.
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Performance income is taxed where the performance happens, and the deduction is usually taken at source on the gross fee before expenses. Recovering the difference is a filing exercise in the other country, and it only works if the tour, the residency and the withholding certificates were documented while the work was being done.
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