TDS Calculator India

What TDS Actually Does to Your Money

Every time a business pays interest, rent, a contractor or a consultant in India, a slice of that payment is shaved off before it lands in the recipient's account. That slice is TDS — Tax Deducted at Source — and it is the government's way of collecting income tax at the moment money changes hands rather than waiting for a return to be filed months later.

The deductor (the payer) is legally responsible for cutting the right percentage, depositing it with the Income Tax Department, and issuing a TDS certificate (Form 16 or 16A). The payee then claims that amount as a credit against their final tax bill. Our TDS Calculator India shows you both sides of that transaction instantly: how much gets deducted and how much actually reaches the bank.

The Sections That Matter Most

TDS is organised by section, and each one carries its own rate and threshold. For FY 2025-26 the common ones are:

• 194A — Interest: 10% on bank or post-office interest above ₹40,000 (₹50,000 for seniors).
• 194I — Rent: 10% on rent for land, building or furniture above ₹2,40,000 a year.
• 194J — Professional fees: 10% on consulting, legal, technical and design work above ₹30,000.
• 194C — Contractors: 1% for individuals/HUFs, 2% for companies, on payments above ₹30,000 per bill.
• 194H — Commission/Brokerage: 5% on commission income above ₹15,000.
• 192 — Salary: no flat rate; deducted at your average slab rate.

A Worked Example in Rupees

Imagine you are a freelance designer who invoices a company ₹1,20,000 for a branding project. This falls under Section 194J (professional fees), which carries a 10% rate for FY 2025-26, and your invoice comfortably crosses the ₹30,000 threshold.

The company deducts:

TDS = ₹1,20,000 × 10% = ₹12,000

You receive a net payment of ₹1,08,000, and the company deposits ₹12,000 against your PAN. When you file your return, that ₹12,000 already sits in your Form 26AS as a credit. If your total tax for the year works out to only ₹9,000, you claim a ₹3,000 refund.

Now flip one detail: suppose you forgot to share your PAN. Under Section 206AA, the rate jumps to the higher of 10% or 20% — so the company deducts ₹24,000 instead, leaving you only ₹96,000 and a much larger refund to chase later. That single missing document doubled the deduction, which is why PAN should always travel with your invoice.

Thresholds Are Your Friend

Thresholds exist so small payments aren't burdened with paperwork. If your bank interest for the year is ₹35,000, it stays below the ₹40,000 194A limit and no TDS is cut — though the interest is still taxable and must be declared. The calculator flags this automatically, showing a "No TDS Required" notice whenever a payment falls under its section's threshold.

Why Estimating TDS Early Pays Off

Knowing your TDS in advance helps in three ways. Freelancers and landlords can price their work knowing the cash that will actually arrive. Employers and finance teams can deduct accurately and avoid interest penalties for short deduction. And anyone earning interest can plan whether to submit Form 15G/15H to avoid deduction when their income is below the taxable limit.

If your income is largely investment-based, pair this tool with the fixed deposit calculator to see how interest accrues before TDS, or the PPF calculator for a fully tax-free alternative where no TDS ever applies.

A Word of Caution

The rates and thresholds used here are indicative for FY 2025-26 and simplified for common resident-payee scenarios. Surcharge, cess, lower-deduction certificates and special categories can all change the figure. Treat the result as a planning estimate and confirm the exact applicable rate with a qualified Chartered Accountant or the official income-tax portal before deducting or filing.