TDS Calculator
Calculate TDS deducted on salary, FD interest, rent, or professional fees. Deduct or reverse.
🧾 What is TDS?
TDS stands for Tax Deducted at Source. It is a mechanism under the Indian Income Tax Act where the payer deducts tax at the time of making payment and deposits it with the government on behalf of the payee. The payee (receiver of payment) can claim this deducted tax as a credit when filing their Income Tax Return (ITR).
TDS applies to a wide range of payments: salary, interest on fixed deposits, professional fees, rent, contractor payments, commission, and more. Each category has a specific TDS rate prescribed by the Income Tax Department. For example, banks deduct TDS at 10% on FD interest exceeding ₹40,000 per year (₹50,000 for senior citizens).
This calculator has two modes. Deduct TDS mode calculates the TDS amount and net payment from a gross amount. Gross from Net mode works backwards - if you received a net payment after TDS was deducted, it calculates the original gross amount and the TDS that was deducted.
📐 TDS Formulas
TDS = Gross Amount × TDS Rate / 100
Net Payment = Gross Amount − TDS
Gross (reverse) = Net Amount / (1 − TDS Rate / 100)
Gross Amount = the total payment before TDS deduction
TDS Rate = the applicable percentage for the payment type
Net Payment = amount actually received after TDS
Common TDS rates (FY 2025-26): FD interest 10%, professional fees 10%, rent on land/building 10%, contractor payments 1%–2%, lottery winnings 30%. Surcharge and cess may apply for high-income individuals.
📖 How to Use This Calculator
Steps
1
Select mode: "Deduct TDS" if you know the gross and want to find TDS. "Gross from Net" if you received payment after TDS and want to find the gross.
2
Choose the TDS category from the dropdown, or select "Custom Rate" to enter any rate.
3
Enter the amount and click Calculate.
💡 Example Calculations
Example 1 - FD Interest TDS
FD Interest earned: ₹60,000 | TDS Rate: 10%
1
TDS = ₹60,000 × 10% = ₹6,000
Net interest received = ₹60,000 − ₹6,000 = ₹54,000
Try this example →Example 2 - Reverse: Net to Gross
Net received: ₹90,000 after 10% TDS
1
Gross = ₹90,000 / (1 − 0.10) = ₹90,000 / 0.90 = ₹1,00,000
TDS deducted = ₹1,00,000 − ₹90,000 = ₹10,000
Try this example →❓ Frequently Asked Questions
What is the TDS threshold for FD interest?
TDS on FD interest is deducted only when total FD interest from a single bank exceeds ₹40,000 in a financial year (₹50,000 for senior citizens aged 60+). Below this threshold, no TDS is deducted. If your PAN is not registered with the bank, TDS is deducted at 20% regardless of the amount.
What is the difference between TDS and advance tax?
TDS (Tax Deducted at Source) is deducted by the payer at the time of payment and deposited with the government. Advance tax is a self-assessed tax paid in installments by the taxpayer during the year if total tax liability exceeds Rs 10,000. Both are credited against your final tax liability; excess results in a refund.
How do I claim a TDS refund?
File your Income Tax Return (ITR) accurately. If total TDS deducted exceeds your tax liability, the excess is automatically calculated as a refund. Ensure all TDS entries in your Form 26AS match your ITR. Refunds are typically processed within 20-45 days of ITR verification for electronically filed returns.
What happens if TDS is not deducted?
The deductor faces interest of 1% per month from the date TDS was deductible to the date it was actually deducted, plus 1.5% per month from deduction date to deposit date. Penalty under Section 271C can be equal to the TDS amount not deducted. For the deductee, 30% of the expense may be disallowed if TDS was not deducted on a covered payment.
Can I get a refund of TDS deducted?
Yes. TDS deducted is credited to your account in Form 26AS. When you file your ITR, TDS appears as advance tax paid. If total TDS deducted exceeds your actual tax liability, the excess is refunded by the Income Tax Department directly to your bank account - typically within a few months of filing.
How do I submit Form 15G to stop TDS on FD?
Form 15G (for individuals below 60) and Form 15H (for senior citizens) are self-declarations stating that your total income is below the taxable limit. Submit the form to your bank at the beginning of each financial year. The bank will not deduct TDS if the form is valid. Note: submitting a false 15G/15H declaration when you are taxable is a punishable offence.
What happens if the payer does not deduct TDS?
If a payer is legally required to deduct TDS but fails to do so, the payer faces penalties and interest under Sections 201 and 201(1A) of the Income Tax Act. The payer is considered an "assessee in default." The payee also remains liable to pay the tax directly. This is why businesses keep careful records of TDS obligations.
What is TDS on salary under Section 192?
Under Section 192, employers deduct TDS from salary based on the employee's estimated annual income and the applicable tax slab. There is no fixed percentage - the employer calculates projected annual tax, divides by 12 (or remaining months), and deducts monthly. Employees must declare their regime choice (New or Old) and investment proofs to their employer. Any shortfall or excess is adjusted in the last quarter. Form 16 issued by the employer summarises all TDS deducted.
What is TDS on professional fees under Section 194J?
Section 194J mandates TDS deduction on professional or technical services fees. The rate is 10% for most professional services (doctors, lawyers, consultants, architects). For purely technical services (e.g. software support, IT services), the rate was reduced to 2% from FY 2020-21. TDS applies when the payment to a single professional exceeds ₹30,000 in a financial year. Freelancers and consultants should factor this into cash flow planning, as TDS is deducted before receiving payment.
What is the threshold limit for TDS deduction?
TDS thresholds vary by payment type. For salary: no threshold (TDS applies from the first rupee above exemption). For bank FD interest: Rs 40,000/year (Rs 50,000 for seniors). For professional fees (194J): Rs 30,000. For rent (194I): Rs 2.4 lakh/year. For contractor payments (194C): Rs 1 lakh (aggregate) or Rs 30,000 per payment. Always verify current thresholds on the Income Tax portal.
How can I reduce TDS on my income?
For salary: submit Form 12BB to your employer declaring investments (80C, 80D, HRA, LTA). For bank interest: submit Form 15G/15H if total income is below the basic exemption limit. For other TDS: apply for a lower deduction certificate (Form 13) from the Income Tax Officer if you expect lower overall tax liability.