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TDS Calculator India — FY 2025-26

Calculate TDS deducted on your income instantly. Covers all major sections — salary (192), FD interest (194A), rent (194I), professional fees (194J), property sale (194IA), and more. Check Form 15G/15H eligibility to avoid unnecessary TDS. Updated with rates from incometax.gov.in for FY 2025-26.

Select the type of payment on which TDS is deducted
Total amount of payment or income
Yes
Higher TDS at 20% if PAN is not provided (Section 206AA)

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How to Use This Calculator

TDS on Income tab

Select the income type (FD interest, rent, professional fees, property sale, etc.), enter the payment amount, and indicate whether PAN is available. The calculator shows the applicable TDS rate, threshold limit, TDS amount deducted, and net payment received. Without PAN, TDS is deducted at 20% under Section 206AA.

Monthly Salary TDS tab

Enter your monthly gross salary and select your tax regime (new or old). For the old regime, you can add deductions under Section 80C, 80D, and HRA exemption. The calculator estimates your monthly TDS as deducted by your employer, along with annual tax liability and effective tax rate.

Form 15G/15H tab

Enter your total estimated income for the financial year and select your age category. The calculator checks whether you are eligible to submit Form 15G (below 60) or Form 15H (senior citizens 60+) to avoid TDS on interest income from banks and post offices.

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The Formula

TDS (Tax Deducted at Source) is calculated as a percentage of the payment amount, depending on the type of income and applicable section of the Income Tax Act:

TDS on Non-Salary Income:
TDS Amount = Payment Amount × Applicable TDS Rate

Where TDS Rate depends on the section:
• FD Interest (194A): 10% above &rupee;40,000 (&rupee;50,000 for seniors)
• Rent — Land/Building (194I): 10% above &rupee;2,40,000/year
• Rent — Plant/Machinery (194I): 2% above &rupee;2,40,000/year
• Professional Fees (194J): 10% above &rupee;30,000
• Contractor — Individual (194C): 1% above &rupee;30,000
• Contractor — Company (194C): 2% above &rupee;30,000
• Property Sale (194IA): 1% above &rupee;50,00,000
• Commission (194H): 5% above &rupee;15,000
• Lottery/Gambling (194B): 30% above &rupee;10,000
• EPF Withdrawal (192A): 10% above &rupee;50,000 (if service < 5 years)

No PAN (Section 206AA): TDS at 20% or applicable rate, whichever is higher

Salary TDS (Section 192):
Taxable Income = Gross Salary − Standard Deduction − Exemptions − Deductions
Annual Tax = Tax on Taxable Income as per slab rates + 4% Cess
Monthly TDS = Annual Tax ÷ 12

TDS is an advance tax collection mechanism. The deductor (payer) deducts tax at source and deposits it with the government. The deductee (recipient) can claim credit for TDS when filing their Income Tax Return.

Example

Rahul — Mumbai salaried professional with FD investments

Rahul earns &rupee;80,000/month (gross salary) and has &rupee;5,00,000 in Fixed Deposits earning 7.5% interest. He is 32 years old and opts for the new tax regime.

Step 1: TDS on FD Interest

FD Amount&rupee;5,00,000
Annual FD Interest (7.5%)&rupee;37,500
Threshold (Section 194A)&rupee;40,000
TDS deducted&rupee;0 (below threshold)

Step 2: Monthly Salary TDS (New Regime)

Monthly salary&rupee;80,000
Annual salary&rupee;9,60,000
Standard deduction−&rupee;75,000
Taxable income&rupee;8,85,000

Step 3: Tax calculation

₹0-4L at 0%&rupee;0
₹4-8L at 5%&rupee;20,000
₹8-8.85L at 10%&rupee;8,500
Total tax&rupee;28,500
Cess (4%)&rupee;1,140
Annual tax payable&rupee;29,640
Monthly TDS&rupee;2,470

Rahul's FD interest is below the &rupee;40,000 threshold, so no TDS is deducted on it. His employer deducts approximately &rupee;2,470/month as TDS from his salary, leaving a monthly take-home of &rupee;77,530.

FAQ

TDS (Tax Deducted at Source) is a mechanism where the payer deducts tax at the time of making a payment and deposits it with the government on behalf of the payee. It was introduced to collect tax at the very source of income, ensuring regular inflow of tax revenue and reducing tax evasion. TDS applies to salary, interest on FDs, rent, professional fees, commission, property sale, and various other payments. The deducted amount is reflected in your Form 26AS and Annual Information Statement (AIS), and you can claim credit for it when filing your Income Tax Return.
If your total income for the financial year is below the taxable limit (or results in nil tax after deductions and rebates), you can claim a full refund of TDS deducted by filing your Income Tax Return. The refund is processed by CPC Bengaluru and typically credited within 1-4 months of filing. Alternatively, you can prevent TDS from being deducted in the first place by submitting Form 15G (if below 60) or Form 15H (if 60 or above) to the deductor, provided your estimated tax liability is nil.
Under Section 206AA, if the deductee does not furnish PAN to the deductor, TDS is deducted at the higher of: (a) the rate specified in the relevant section, (b) the rate in force (as per Finance Act), or (c) 20%. In practice, this means 20% for most income types. Additionally, under Section 206AB (applicable from 1 July 2021), if a person has not filed ITR for the last 2 years and aggregate TDS/TCS exceeds &rupee;50,000 in each year, TDS is deducted at the higher of: twice the applicable rate or 5%. Always provide PAN to avoid higher TDS deduction.
Your employer estimates your total annual salary, deducts the standard deduction (&rupee;75,000 new regime, &rupee;50,000 old regime), and applies claimed exemptions and deductions (HRA, 80C, 80D under old regime). Tax is then calculated on the taxable income using the applicable slab rates, plus 4% Health & Education Cess. This annual tax is divided by 12 (or remaining months) to determine monthly TDS. You can submit investment declarations at the start of the year and actual proofs (usually by January-February) to your employer to adjust TDS. If you have income from other sources, you should declare it to your employer under Section 192(2B) for accurate TDS calculation.
Form 15G can be submitted by an individual below 60 years of age (or HUF/trust) whose estimated tax on total income for the financial year is nil. It is commonly submitted to banks to avoid TDS on FD interest. Form 15H is exclusively for senior citizens aged 60 and above whose estimated tax on total income is nil. Under the new tax regime with Section 87A rebate, individuals with income up to &rupee;12 lakh can potentially use these forms. Both forms must be submitted at the beginning of each financial year. Filing a false declaration is punishable under Section 277 of the Income Tax Act.

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