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
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
💡 Example Calculations
Example 1 - FD Interest TDS
FD Interest earned: ₹60,000 | TDS Rate: 10%
Example 2 - Reverse: Net to Gross
Net received: ₹90,000 after 10% TDS
❓ Frequently Asked Questions
🔗 Related Calculators
What is the TDS threshold for FD interest?
TDS on FD interest is deducted when total FD interest from a single bank exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). Below this threshold, no TDS is deducted. If your PAN is not registered with the bank, TDS is deducted at 20% regardless of amount.
Can I get a refund of TDS deducted?
Yes. TDS deducted is credited in your Form 26AS. When you file your ITR, it is treated as advance tax paid. If total TDS exceeds your actual tax liability, the Income Tax Department refunds the excess 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 that your total income is below the taxable limit. Submit to your bank at the start of each financial year. The bank will not deduct TDS if the form is valid. Submitting a false 15G/15H when you are taxable is a punishable offence.
What is TDS on salary under Section 192?
Employers deduct TDS on salary monthly under Section 192, based on the employee's estimated annual income and declared deductions. The rate is not flat - it is the applicable income tax slab rate on projected annual income. Employees should declare their deductions (80C, 80D, HRA etc.) to their employer at the start of the year to avoid excess TDS deduction.
What is the TDS rate on professional fees (Section 194J)?
TDS under Section 194J is 10% on professional or technical service fees paid to individuals or firms. The threshold is ₹30,000 per year per payee. From FY 2020-21, TDS on fees for technical services (not professional services) is reduced to 2%. Examples of professional services: doctors, lawyers, architects, consultants. Examples of technical services: maintenance contracts, software services.
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.