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India TDS (tax deducted at source)

tds
Read-onlyIdempotent

Calculate statutory Tax Deducted at Source (TDS) under the Indian Income-tax Act, 1961 (AY 2025-26 / FY 2024-25). Supports Section 194C (contractor), 194J (professional/technical fees), 194Q (goods purchase), 194H (commission/brokerage), 194I (rent), higher deduction rate under Section 206AA for missing PAN, and precedence evaluation between 194Q and 206C(1H).

Input Schema

TableJSON Schema
NameRequiredDescriptionDefault
amountYesTransaction payment or credit amount in INR (₹).
residentYesWhether the payee is resident under s.6. Non-resident payments fall under s.195 and are out of scope, so false is refused rather than answered.
as_of_dateYesCivil date YYYY-MM-DD. Selects the statutory rate pack in force on that date. Required: the engine will not assume a date.
payee_typeYesPayee class. Under s.194C this selects 1% (individual or HUF) versus 2% (domestic company), so it changes the answer and is not defaulted. The legacy values 'individual' and 'company' are still accepted as exact synonyms; any other value is refused.
payment_typeYesStatutory nature of the payment, which selects the section and therefore the rate. State it exactly; the engine does not infer it. Note that professional_services (10%) and technical_services (2%) are DISTINCT and differ fivefold - there is deliberately no combined value, and a request that does not distinguish them is answered AMBIGUOUS rather than guessed.
pan_availableYesWhether the payee has furnished a PAN. Required: without a PAN, Section 206AA applies the higher rate, so it is never assumed.
pan_operativeYesWhether the furnished PAN is operative (linked to Aadhaar). Required when pan_available is true: an inoperative PAN is treated as no PAN under Section 206AA.

Schema Changelog

Changes observed during successful MCP inspections.

  1. Changed6 schema fields changed
    • addedInput schema / properties / amount / example
      Added value: +"50000.00"
    • addedInput schema / properties / amount / pattern
      Added value: +"^\\d+\\.\\d{2}$"
    • changedInput schema / properties / amount / type
      Previous value: -"number"New value: +"string"
    • changedInput schema / properties / pan_available / description
      Previous value: -"Whether the payee has furnished a valid PAN. false triggers the s.206AA higher rate of 20%."New value: +"Whether the payee has furnished a PAN. Required: without a PAN, Section 206AA applies the higher rate, so it is never assumed."
    • addedInput schema / properties / pan_operative
      Added value: +{
      +  "description": "Whether the furnished PAN is operative (linked to Aadhaar). Required when pan_available is true: an inoperative PAN is treated as no PAN under Section 206AA.",
      +  "type": "boolean"
      +}
    • changedInput schema / required
      Previous value: -[
      -  "amount",
      -  "as_of_date",
      -  "payment_type",
      -  "payee_type",
      -  "resident"
      -]New value: +[
      +  "amount",
      +  "as_of_date",
      +  "payment_type",
      +  "payee_type",
      +  "resident",
      +  "pan_available",
      +  "pan_operative"
      +]
  2. Changed12 schema fields changed
    • addedInput schema / properties / as_of_date
      Added value: +{
      +  "description": "Civil date YYYY-MM-DD. Selects the statutory rate pack in force on that date. Required: the engine will not assume a date.",
      +  "type": "string"
      +}
    • addedInput schema / properties / pan_available
      Added value: +{
      +  "description": "Whether the payee has furnished a valid PAN. false triggers the s.206AA higher rate of 20%.",
      +  "type": "boolean"
      +}
    • removedInput schema / properties / pan_status
      Removed value: -{
      -  "default": "valid",
      -  "description": "Status of payee PAN. 'missing_or_invalid' triggers Section 206AA higher withholding rate (20%).",
      -  "enum": [
      -    "valid",
      -    "missing_or_invalid"
      -  ],
      -  "type": "string"
      -}
    • removedInput schema / properties / payee_type / default
      Removed value: -"individual"
    • changedInput schema / properties / payee_type / description
      Previous value: -"Legal entity classification of the payee."New value: +"Payee class. Under s.194C this selects 1% (individual or HUF) versus 2% (domestic company), so it changes the answer and is not defaulted. The legacy values 'individual' and 'company' are still accepted as exact synonyms; any other value is refused."
    • changedInput schema / properties / payee_type / enum
      Previous value: -[
      -  "individual",
      -  "company"
      -]New value: +[
      +  "individual_or_huf",
      +  "domestic_company"
      +]
    • removedInput schema / properties / payment_type / default
      Removed value: -"contract"
    • changedInput schema / properties / payment_type / description
      Previous value: -"Statutory nature of payment under the Income-tax Act."New value: +"Statutory nature of the payment, which selects the section and therefore the rate. State it exactly; the engine does not infer it. Note that professional_services (10%) and technical_services (2%) are DISTINCT and differ fivefold - there is deliberately no combined value, and a request that does not distinguish them is answered AMBIGUOUS rather than guessed."
    • changedInput schema / properties / payment_type / enum
      Previous value: -[
      -  "contract",
      -  "technical_professional",
      -  "goods_purchase",
      -  "commission_brokerage",
      -  "rent_land_building",
      -  "rent_plant_machinery"
      -]New value: +[
      +  "contract",
      +  "professional_services",
      +  "technical_services",
      +  "purchase_of_goods",
      +  "royalty",
      +  "director_fees",
      +  "non_compete_fees",
      +  "call_centre"
      +]
    • addedInput schema / properties / resident
      Added value: +{
      +  "description": "Whether the payee is resident under s.6. Non-resident payments fall under s.195 and are out of scope, so false is refused rather than answered.",
      +  "type": "boolean"
      +}
    • removedInput schema / properties / resident_status
      Removed value: -{
      -  "default": "resident",
      -  "description": "Residential status of the payee under Section 6.",
      -  "enum": [
      -    "resident",
      -    "non_resident"
      -  ],
      -  "type": "string"
      -}
    • changedInput schema / required
      Previous value: -[
      -  "amount"
      -]New value: +[
      +  "amount",
      +  "as_of_date",
      +  "payment_type",
      +  "payee_type",
      +  "resident"
      +]
  3. Added

TDQS

A3.9/5.0
Behavior4/5

Does the description disclose side effects, auth requirements, rate limits, or destructive behavior?

The description goes beyond the annotations (readOnlyHint=true, idempotentHint=true, destructiveHint=false) by disclosing specific behavioral traits: it supports higher deduction rates under Section 206AA for missing PAN and evaluates precedence between 194Q and 206C(1H). These are concrete behaviors that an agent needs to know. It does not contradict any annotation, and the added detail enriches the safety and scope profile beyond what the structured hints convey.

Agents need to know what a tool does to the world before calling it. Descriptions should go beyond structured annotations to explain consequences.

Conciseness5/5

Is the description appropriately sized, front-loaded, and free of redundancy?

The description is a single, information-dense sentence that front-loads the core purpose ('Calculate statutory TDS') and then efficiently lists the supported sections and specific behaviors. Every phrase earns its place; there is no filler. The structure allows an agent to quickly grasp scope without wading through redundant detail.

Shorter descriptions cost fewer tokens and are easier for agents to parse. Every sentence should earn its place.

Completeness3/5

Given the tool's complexity, does the description cover enough for an agent to succeed on first attempt?

For a tool with 7 required parameters and no output schema, the description covers the statutory scope and key behaviors but omits the return format (e.g., whether it returns a rate or an amount) and does not explicitly mention edge-case refusals (e.g., non-resident payments) that are documented only in the schema. Given the complex statutory context and the absence of an output schema, the description is adequate but not fully complete—it leaves an agent to infer the call's outcome.

Complex tools with many parameters or behaviors need more documentation. Simple tools need less. This dimension scales expectations accordingly.

Parameters3/5

Does the description clarify parameter syntax, constraints, interactions, or defaults beyond what the schema provides?

The input schema already covers all parameters with detailed descriptions at 100% coverage, so the baseline is 3. The description adds only marginal parameter-related meaning: it mentions sections that map to payment_type (e.g., 194C for contract) and the PAN-related sections (206AA) that tie to pan_available, but it does not elaborate on parameter syntax or interactions beyond what the schema already states. It does not meaningfully compensate for any gap, but none exists.

Input schemas describe structure but not intent. Descriptions should explain non-obvious parameter relationships and valid value ranges.

Purpose5/5

Does the description clearly state what the tool does and how it differs from similar tools?

The description opens with a specific verb ('Calculate') and a precise resource ('statutory Tax Deducted at Source (TDS) under the Indian Income-tax Act, 1961'), then enumerates the exact statutory sections supported (194C, 194J, 194Q, 194H, 194I, 206AA, 206C(1H)). This unambiguously identifies the tool's function and distinguishes it from other tax tools in the sibling list (e.g., tcs, advance_tax, gst_composition).

Agents choose between tools based on descriptions. A clear purpose with a specific verb and resource helps agents select the right tool.

Usage Guidelines3/5

Does the description explain when to use this tool, when not to, or what alternatives exist?

The description clearly implies usage for TDS calculations by naming the supported sections, but it does not explicitly state when to use this tool versus alternatives like tcs, advance_tax, or indian_income_tax. There is no mention of exclusions (e.g., 'for TCS use tcs') or conditions that would route an agent to a sibling. The guidance is implicit rather than explicit, so it meets a baseline but not the bar for clear differentiation.

Agents often have multiple tools that could apply. Explicit usage guidance like "use X instead of Y when Z" prevents misuse.

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