Client Cut 10% TDS Without Telling You? Ask This First

Say you built a website for Aman's company and sent an invoice for ₹60,000. A week later your bank app shows ₹54,000 credited. No message from Aman. No note on the transfer.

It reads like an underpayment. You start drafting a message that tries to ask for ₹6,000 without sounding petty. Then, three replies later, someone in their accounts department says "that is TDS, sir" as if you should have known.

The TDS questions to ask before invoicing, a message to copy and the numbers with and without GST are all below.

Ask these five things first

Before you send the invoice, ask the client five things in writing:

1. Will you deduct TDS on this payment?
2. At what rate, and why that rate?
3. Will it be worked out on my fee before GST?
4. When will I get the TDS certificate?
5. Do you have my PAN?

Then show the deduction on the invoice itself. The invoice and your bank should agree before the money moves.

Why the short amount lands as a surprise

Freelancer forums have a standard TDS thread. The post is angry because the client deducted tax without a word, and the replies are blunt: the deduction is normal, and you should have asked before invoicing.

Both sides have a point. The client should have told you. You can also ask, and it takes one message.

I have already explained what the deduction is and how you get credit for it in TDS deduction on a service invoice and how to claim it back, so I will not repeat it. Here is the short version as of October 2026. Confirm with a CA, because these rules change:

• Tax is commonly deducted at 10% on professional fees and 2% on technical services, once payments from one client go above ₹50,000 in the financial year. After that, the rate applies to the whole year's total, so one payment can carry a catch-up deduction for earlier ones.
• Contractor-type work is 1% for individuals and Hindu undivided families and 2% for anyone else, with different limits.
• Without your PAN, the deduction goes up to 20%.
• From 1 April 2026 the Income-tax Act, 2025 groups these under Section 393. "194J" and "194C" are the older names. Clients still use them, so do not be thrown when you hear them.

The five questions to ask before you send the invoice

1. Will you deduct TDS on this payment?

A plain yes or no. Companies, firms and LLPs are required to deduct once payments pass the threshold. An individual or a small proprietor usually is not, unless their own turnover last year was above ₹1 crore, or ₹50 lakh for a profession. So the type of client matters more than its size.

2. At what rate, and why that rate?

The "why" is the useful part. On a ₹60,000 fee, 10% is ₹6,000 held back and 2% is ₹1,200. The person paying you picks the rate based on how they have classified your work. Ask which kind of work they have you down as.

3. Will it be worked out on my fee before GST?

Only relevant if you charge GST. When GST is shown separately on the invoice, TDS should be worked out on the fee before GST, not on the total. If the client applies the rate to the full invoice amount, they hold back more than they should. This is easier to settle before payment than after.

4. When will I get the TDS certificate?

The client should give you a TDS certificate for what they deducted. Ask when they send it and who sends it. Get a name or an email address.

5. Do you have my PAN?

If they do not, a higher rate applies. Send your PAN in the same message and put it on the invoice too. Check that the name they have on file matches the name on your PAN.

If you are still at the quote stage, even better. TDS is one of the things worth raising before you name a number, along with the rest of the list in what to ask before quoting a client.

The message to copy

Hi Aman, I am preparing the invoice for the website work. Quick check so the numbers match on both sides:

1. Will your accounts department deduct TDS on this payment?
2. If yes, at what rate, and which kind of work is it classified as?
3. I will show GST separately. Can you confirm TDS is worked out on the fee before GST?
4. When and from whom will I get the TDS certificate?
5. My PAN is [your PAN]. Please confirm it is on file.

I will show the deduction and the net amount on the invoice so there is no confusion at payment time. Thanks!

Drop line 3 if you do not charge GST. The same text works as an email. Add the invoice number to the subject line.

Send it to the person who approves the work, and ask them to forward it to whoever handles payments. The reply is your record.

What the numbers look like, with and without GST

On a ₹60,000 fee with TDS at 10%, ₹6,000 is held back and ₹54,000 lands in your account. Add GST at 18%, shown separately, and the invoice total becomes ₹70,800, but the TDS stays at ₹6,000, because it is worked out on the fee and not on the total. You receive ₹64,800.

Now the mistake question 3 is there to catch. If the client applies 10% to the full ₹70,800, they hold back ₹7,080 and you receive ₹63,720. That is ₹1,080 less in your account than it should be. The full worked example, with both columns side by side, is in show TDS on your invoice.

Put the deduction on the invoice

Once the client has answered, the invoice should say it: the total, the TDS, and the net amount to transfer.

This is what the TDS line on a Riffit invoice does. I built Riffit, so I am describing my own tool and you should weigh it that way. You declare the deduction on the invoice by picking the kind of work. The invoice then shows the deduction and the net amount the client should transfer, worked out on your fee before GST, and the Pay via UPI button asks for that same net amount.

What it will not do: decide whether your client has to deduct, work out what you owe, or watch thresholds. It applies the rate you pick and stores what you enter, so those answers still come from the client and your CA.

If the client picks 10% and you think 2% applies

Ask. Do not argue.

The person paying you decides which rate to apply at the time of payment. You may believe the lower rate fits your work. They may have every vendor like you down as professional fees. A WhatsApp debate about tax classification with someone's accounts department rarely ends well.

Send one calm question:

Thanks for confirming. I had expected 2% since this is [describe the work]. Could you check with your CA which rate applies? Happy to go with whatever they confirm.

If they come back with 10%, let it go for this invoice. The tax deducted is not lost. It should be credited to you either way: it should appear in your annual tax statement, and you claim it as credit when you file. The real cost of the higher rate is cash in hand today. On ₹60,000 that is ₹6,000 held back instead of ₹1,200.

If the gap hurts across a year of invoices, take it to your own CA. Ask which rate fits your work and what to say to the client.

How to check later that it was deposited

A deduction on your invoice is only half the job. The client also has to deposit it against your PAN.

Two things tell you it happened:

• The certificate arrives. The client gives you the TDS certificate for the amount deducted.
• Your annual tax statement shows it. The deducted amount should appear in your annual tax statement on the income tax portal.

Keep your own running list as you go: invoice number, fee, TDS deducted, net received, certificate received or not.

If an entry is missing, write to the client with the invoice number, the amount deducted and the date you were paid, and ask when it will show. Keep the invoice, the bank entry showing the net amount, and their reply. If it stays missing, that is a question for a CA.

If it has already happened

If the short amount has already landed, do the arithmetic first. A gap of exactly 10%, 2% or 1% of your fee points to TDS, and 20% usually means the client did not have your PAN. A bigger gap can still be TDS, if this payment took your total from that client over ₹50,000 and the client caught up on earlier payments. Any other gap is a different conversation, covered in client paid less than your invoice.

If it is TDS, do not open with "you underpaid". Send this:

Hi Aman, received ₹54,000 against INV26-019, thank you. I see ₹6,000 less than the invoice. Is that TDS? If so, could you confirm the rate and share the TDS certificate when it is ready? My PAN is [your PAN].

Then ask the five questions before the next invoice.

FAQ