TDS Calculator India – Tax Deducted at Source FY 2025-26

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Section 194A — Interest (FD/RD)

TDS on interest income from banks, co-op societies and post offices

PAN Available?

Is Payee a Senior Citizen? (age 60+, affects threshold)

Payment Amount (annual amount for threshold check)

₹

TDS Amount

₹0

Rate: 10%

Gross Payment

₹0

Net Payment

₹0

Threshold Check

Section Details

TDS Rate Reference — FY 2025-26

All rates applicable for resident Indians. Higher of 20% or rate applies if PAN not furnished.

Section	Nature of Payment	Threshold	TDS Rate

What is TDS?

TDS (Tax Deducted at Source) is a mechanism where the payer deducts tax at the time of making certain payments — salary, interest, rent, professional fees, etc. — and deposits it with the government on behalf of the recipient.

The recipient gets credit for the TDS when filing their Income Tax Return (ITR). If TDS deducted is more than the actual tax liability, the excess is refunded by the IT department.

Key Rule

TDS is only applicable when the payment crosses the threshold limit. For example, Section 194A TDS on bank FD interest applies only if annual interest exceeds ₹50,000 (₹1,00,000 for senior citizens) — both limits were raised in Budget 2025.

TDS vs TCS — What's the Difference?

Feature	TDS	TCS
Full Form	Tax Deducted at Source	Tax Collected at Source
Who deducts	Payer	Seller/Collector
When	At time of payment	At time of sale
Examples	Salary, rent, FD interest	Car sale, scrap, forest
Form	Form 16/16A/26Q	Form 27D

How to Claim TDS Refund?

1.Download your Form 26AS from the IT portal (incometax.gov.in) — it shows all TDS deducted on your PAN.
2.File your ITR before July 31 (or the extended deadline) for the relevant assessment year.
3.In your ITR, enter the TDS details. The system automatically computes Tax Payable or Refund Due.
4.Verify your ITR via Aadhaar OTP or net banking. The refund is credited to your bank account usually within 30–45 days of e-verification.

Submit Form 15G / 15H to Avoid TDS

Form 15G — For individuals below 60

If your estimated total income is below the basic exemption limit (₹4 lakh under the new regime for FY 2025-26) and your tax liability is nil, submit Form 15G to the bank to request zero TDS on interest.

Form 15H — For senior citizens (60+)

Senior citizens can submit Form 15H if their estimated tax liability is nil (i.e., income after deductions falls below taxable limit), requesting the bank not to deduct TDS.

Submit at the start of each financial year. Forms are available at your bank branch or online banking portal.

Frequently Asked Questions

Common questions about TDS in India

What is the TDS rate on FD interest?

Under Section 194A, TDS on FD interest is 10% if annual interest from a bank exceeds ₹50,000 (₹1,00,000 for senior citizens aged 60+). Both limits were raised in Budget 2025 (earlier ₹40,000 / ₹50,000). Without PAN, the rate becomes 20%. Submit Form 15G/15H if your income is below the taxable limit to get zero TDS.

What is TDS on rent above ₹50,000/month?

Under Section 194-IB, individuals/HUFs (not under tax audit) paying rent exceeding ₹50,000 per month must deduct TDS at 2% (reduced from 5% w.e.f. 1 Oct 2024), once a year using Form 26QC — no TAN needed. Under Section 194-I (companies, firms and those under audit), TDS on rent for land/building is 10% and for plant/machinery 2%; from Budget 2025 the threshold is ₹50,000 per month (earlier ₹2,40,000 per year).

What is TDS on professional fees (194J)?

Under Section 194J, TDS is deducted on payments to professionals (doctors, lawyers, CAs, architects) at 10% if the amount exceeds ₹50,000 per year (raised from ₹30,000 in Budget 2025). For technical services (call centre, software development), the rate is 2%. Royalty payments also attract 10% TDS under 194J.

What happens if TDS is not deducted?

If TDS is not deducted when required: (1) The payer is liable to pay interest at 1% per month from the date TDS was deductible. (2) The payment amount may be disallowed as a business expense — increasing your taxable profit. (3) A penalty under Section 271C equal to the TDS amount may be levied. Always check TDS applicability before making large payments.

When does TDS apply on salary?

Under Section 192, TDS on salary applies when annual salary exceeds the basic exemption limit: ₹4 lakh (new regime, FY 2025-26) or ₹2.5 lakh (old regime). The employer deducts TDS as per the applicable income tax slab rate. Note: under the new regime, income up to ₹12 lakh is effectively tax-free after the Section 87A rebate, so many employees see little or no salary TDS. Employees declare their regime choice to the employer at the start of the year, and Form 16 is issued showing salary and TDS details.

What is TDS on property purchase?

Under Section 194-IA, the buyer must deduct 1% TDS when purchasing immovable property (other than agricultural land) worth ₹50 lakh or more. The buyer must deposit this TDS using Form 26QB and provide Form 16B to the seller. This applies to resident sellers; for NRI sellers, Section 195 with higher TDS rates applies.

What is Section 194T (TDS on partner's remuneration)?

Section 194T is a new TDS section introduced in Budget 2025, effective 1 April 2025. A partnership firm or LLP must now deduct 10% TDS on salary, remuneration, bonus, commission or interest paid to its partners once the total to a partner exceeds ₹20,000 in a year. Earlier, no TDS applied on such payments. The firm files it in Form 26Q and issues Form 16A to the partner.

By when must deducted TDS be deposited?

TDS deducted in a month must generally be deposited by the 7th of the next month (for March, by 30 April). Quarterly TDS returns (Form 24Q for salary, 26Q for others) are due by 31 July, 31 October, 31 January and 31 May. Late deposit attracts interest of 1.5% per month, and late filing of the return attracts a fee of ₹200 per day under Section 234E.