Displacement current is the extra term Maxwell added to Ampere's law so that the law gives a consistent answer no matter what surface is chosen to bound the loop used in the calculation, even when that loop is drawn near a charging capacitor. A good way to see why it is needed, and where its formula comes from, is to look at the contradiction that arises without it.
Step 1: Set up the paradox.
Consider a wire carrying charging current \( i_c \) into one plate of a capacitor. Draw an Amperian loop encircling the wire, away from the plates. Two different surfaces can be bounded by this same loop: a flat disc that cuts straight through the wire, and a bulging surface that passes through the gap between the capacitor plates, never touching the wire.
Step 2: Apply the original (incomplete) Ampere's law to each surface.
Ampere's law states \( \oint \mathbf{B} \cdot d\mathbf{l} = \mu_0 i_{\text{enclosed}} \), where \( i_{\text{enclosed}} \) is the conduction current piercing the chosen surface. For the flat disc, the wire pierces it, so \( i_{\text{enclosed}} = i_c \), giving \( \oint \mathbf{B} \cdot d\mathbf{l} = \mu_0 i_c \). For the bulging surface passing through the gap, where no charge physically crosses, \( i_{\text{enclosed}} = 0 \), giving \( \oint \mathbf{B} \cdot d\mathbf{l} = 0 \). Both surfaces share the same boundary loop, so the result must be the same for both, yet \( \mu_0 i_c \) and \( 0 \) disagree, meaning conduction current alone cannot be the complete source term.
Step 3: Fix the paradox by adding a current-like term through the gap.
Between the plates, while the capacitor is charging, the electric field is changing with time. Maxwell proposed adding a term proportional to the rate of change of electric flux through the bulging surface, the displacement current:\[i_d = \varepsilon_0 \frac{d\Phi_E}{dt}\]so that Ampere's law becomes\[\oint \mathbf{B} \cdot d\mathbf{l} = \mu_0 (i_c + i_d)\]
Step 4: Check consistency.
Through the flat disc, only \( i_c \) contributes, giving \( \mu_0 i_c \). Through the bulging surface, only \( i_d \) contributes, and by the charge-field relation for a capacitor, \( i_d \) works out to exactly equal \( i_c \), again giving \( \mu_0 i_c \). The two surfaces now agree, which is exactly the condition needed for Ampere's law to hold for any surface bounded by the loop.
Step 5: Value for a conductor at constant voltage.
If a constant voltage is applied across a conductor, the associated electric field does not change with time, so \( \frac{d\Phi_E}{dt} = 0 \) and therefore \[i_d = 0\] Only steady conduction current flows; there is no time-varying field to contribute a displacement term.