What is the TDS rate for Digital Marketing Services under Sec 194M — HUF/Individual Payer?

TDS rate for Digital Marketing Services under Sec 194M — HUF/Individual Payer is 5% of the gross payment. If the payee does not furnish their PAN, TDS is deducted at 20% u/s 206AA. TDS must be deducted at the time of credit or payment (whichever is earlier).

What is the TDS threshold for Sec 194M — HUF/Individual Payer?

TDS under Sec 194M — HUF/Individual Payer is triggered only if the annual payment to a single person exceeds ₹50,00,000. Below this threshold, no TDS is required even though GST is applicable.

When must TDS be deposited to the government?

TDS must be deposited by the 7th of the following month for deductions made in any month, except for March (deductions in March must be deposited by 30th April). Use Challan 281 for deposit. Late deposit attracts interest at 1.5% per month u/s 201(1A).

TDS · 194M INDIVIDUAL

TDS Calculator — Digital Marketing Services (Sec 194M — HUF/Individual Payer)

Calculate TDS to be deducted on Digital Marketing Services payments at 5%. Includes threshold check, PAN penalty, advance tax, and quarterly TDS return filing summary.

✓ Rate: 5% ✓ Threshold: ₹5000K ✓ 20% Without PAN

Invoice / Payment Amount (₹) — excluding GST

TDS is on the base amount, not on GST component

Has Payee Provided Valid PAN?

Prior Payments to Same Payee This Year (₹)

Threshold: ₹50,00,000/year. TDS applies on current payment if cumulative exceeds this.

GST on Invoice (₹) — if applicable

TDS is NOT deducted on the GST component

Late Deposit Days (for interest calc)

TDS Calculation Summary

TDS to Deduct

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Net Payment to Payee

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Particulars	Amount
Invoice Value (Base)	—
GST Component	—
TDS Applicable On	—
Prior Payments This Year	—
Annual Threshold	₹50,00,000
TDS Rate Applied	—
TDS Amount	—
Net Payment to Payee	—
Gross (Base + GST)	—
Interest on Late Deposit (if any)	—

📋 Deposit via Challan 281 → CIN Number required for TDS certificate. File quarterly TDS return in Form 26QC. Issue Form 16A within 15 days of filing.

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Frequently Asked Questions

No — as per CBDT Circular No. 23/2017, TDS is not deducted on the GST component of an invoice if GST is separately indicated. TDS is only on the base invoice amount (excluding GST). However, if GST is not separately shown, TDS is on the full invoice amount.

Non-deduction of TDS makes you an "assessee in default" under Section 201. Consequences: (a) TDS amount is recoverable from you, (b) Interest @ 1% per month from due date to deduction date, (c) Penalty u/s 271C up to the TDS amount, (d) Disallowance of 30% of expense u/s 40(a)(ia) in your tax return.

Yes — the payee can apply to the Assessing Officer for a certificate u/s 197 authorizing deduction at a lower rate or nil TDS, if their estimated total tax liability is lower than the TDS rate. The certificate is valid for the financial year stated and must be provided to you before deduction.