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Total amount before TDS deduction

What is TDS?

Tax Deducted at Source collects tax at the point where income arises. The payer withholds a percentage and deposits it against your PAN, and you claim credit for it when you file your return. TDS is not an extra tax. If your final liability turns out lower than what was deducted, the excess comes back as a refund. You can estimate your actual liability with the income tax calculator. For most savers, the commonest trigger is fixed deposit interest crossing the threshold.

The Current Thresholds

Budget 2025 raised the limits substantially, and these apply for FY 2026-27. On bank and post-office interest under Section 194A, TDS at 10% applies only above ₹50,000 a year, or ₹1,00,000 for senior citizens. On rent under 194-I, the threshold is now ₹50,000 per month, and individuals paying rent above that deduct 2% under 194-IB. Professional fees under 194J attract TDS above ₹50,000 a year, and commission under 194H above ₹20,000 a year at a reduced 2% rate.

Worked Examples

Suppose your FD interest for the year is ₹80,000 and you are not a senior citizen. That is above the ₹50,000 threshold, so the bank deducts 10% on the full ₹80,000, which is ₹8,000. If you are in the 30% bracket, your real tax on that interest is about ₹24,960 including cess, and you pay the balance at filing. If you are in the zero-tax zone, you file and get the ₹8,000 refunded. Or take rent: on an office rented at ₹60,000 a month, the tenant deducts ₹1,200 a month and deposits it against the landlord's PAN.

How to Avoid Unnecessary TDS

If your total income is below the taxable limit, submit Form 15G, or Form 15H if you are a senior citizen, to your bank at the start of the financial year. The bank will then pay interest without any deduction. Also make sure your PAN is on record everywhere you earn: without a PAN, the TDS rate jumps to 20%.

Check Your TDS Before You File

Every deduction made against your PAN appears in your Form 26AS and AIS. Before filing, match those entries with your own records. Missing credits, usually because a deductor filed late or used a wrong PAN, are the most common cause of notices and stuck refunds. And remember: interest is taxable even when it is below the TDS threshold. The threshold only decides whether tax is withheld in advance, not whether you owe it.

FAQs about TDS Calculator

Banks deduct 10% TDS when your interest across deposits in that bank exceeds ₹50,000 in a financial year — ₹1,00,000 for senior citizens (thresholds raised by Budget 2025). Without a PAN the rate is 20%.
Submit Form 15G (or 15H if 60+) to the bank at the start of the financial year declaring your income is below the taxable threshold; the bank then pays interest without deduction.
No — TDS is an advance collection. Your actual tax is computed at filing; TDS already deposited is credited against it, and any excess is refunded (or shortfall paid).
If you pay rent above ₹50,000 a month as an individual, deduct 2% under Section 194-IB (once a year or at tenancy end) and deposit it against the landlord's PAN — 20% if the landlord has no PAN.
The deductor may have filed their TDS return late or against a wrong PAN. Follow up with them to correct it — you can only claim credit for TDS that appears against your PAN in 26AS/AIS.
No — the threshold only decides whether the bank withholds tax, not whether you owe it. All deposit interest is taxable at your slab and must be reported in your return, with credit for any TDS already deducted.