TDS (Tax Deducted at Source) means the person paying you deducts a part of the payment as tax and deposits it with the government in your name. Your bank does it on FD interest, your client on professional fees, a tenant company on rent. TDS is not an extra tax. It is an advance payment of your income tax, and it is adjusted against your final tax when you file your return.
How to use the TDS calculator
- Choose the type of payment, such as FD interest, rent or professional fees.
- Enter the amount. The label tells you what to enter, for example interest for the whole year or rent for one month.
- Choose whether the payee has given their PAN.
The calculator shows the TDS, the amount left after TDS, the rate, the limit above which TDS applies, and the section of the law.
What changed from April 2026
From 1 April 2026, the new Income-tax Act, 2025 replaced the Income-tax Act, 1961. All TDS rules that were spread across sections 193 to 196D are now in one place, section 393 (salary and EPF are in section 392). The TDS rates and limits stayed the same as in FY 2025-26. The calculator shows both the new section and the old one, because most people still know them as 194A, 194J and so on.
Forms 15G and 15H, which stopped banks from deducting TDS, have been replaced by a single Form 121 for all ages.
TDS formula
TDS = Amount × TDS rate ÷ 100 (only when the amount crosses the limit)
Amount received = Amount − TDSExamples
- FD interest, age below 60: your bank pays ₹80,000 interest in a year. It is above the ₹50,000 limit, so TDS at 10% is ₹8,000 and you receive ₹72,000.
- Same interest, senior citizen: the limit is ₹1,00,000, so no TDS is deducted on ₹80,000.
- No PAN given: TDS on the same ₹80,000 becomes 20%, which is ₹16,000.
- Freelancer fees: a client pays ₹1,20,000 in a year. TDS at 10% is ₹12,000.
- Office rent: a company pays ₹60,000 rent a month. TDS at 10% is ₹6,000 every month.
- Buying a flat for ₹60 lakh: the buyer deducts 1%, which is ₹60,000.
TDS rates and limits for FY 2026-27
| Payment | Old section | TDS applies when | Rate |
|---|---|---|---|
| FD/RD interest from a bank or post office | 194A | Above ₹50,000 a year (₹1,00,000 for 60+) | 10% |
| Interest from others | 194A | Above ₹10,000 a year | 10% |
| Dividend | 194 | Above ₹10,000 a year | 10% |
| Mutual fund income (IDCW) | 194K | Above ₹10,000 a year | 10% |
| Rent on land, building or furniture | 194-I | Above ₹50,000 a month | 10% |
| Rent on plant or machinery | 194-I | Above ₹50,000 a month | 2% |
| Rent paid by individuals/HUF (no audit) | 194-IB | Above ₹50,000 a month | 2% |
| Professional fees | 194J | Above ₹50,000 a year | 10% |
| Fees for technical services | 194J | Above ₹50,000 a year | 2% |
| Contractor | 194C | Above ₹30,000 per payment or ₹1,00,000 a year | 1% individual/HUF, 2% others |
| Commission or brokerage | 194H | Above ₹20,000 a year | 2% |
| Insurance commission (individual) | 194D | Above ₹20,000 a year | 2% |
| Lottery, game show winnings | 194B | Above ₹10,000 per win | 30% |
| Online gaming winnings | 194BA | Any amount | 30% |
| Buying property | 194-IA | ₹50 lakh or more | 1% |
| EPF withdrawal before 5 years | 192A | ₹50,000 or more | 10% |
| Partner's salary or commission | 194T | Above ₹20,000 a year | 10% |
If the payee does not give a PAN, TDS is 20% or the normal rate, whichever is higher.
How to avoid extra TDS
- Give your PAN to everyone who pays you. Without it, TDS usually jumps to 20%.
- Submit Form 121 to your bank or company if your total income is below the taxable limit. It replaced Forms 15G and 15H from April 2026.
- Ask for a lower-deduction certificate from the Income Tax Department if your actual tax will be much lower than the TDS.
How to check and claim your TDS
Every rupee of TDS is credited against your PAN. You can see it in your annual tax statement on the income tax e-filing portal. When you file your return, the TDS is subtracted from the tax you owe. If more TDS was deducted than your actual tax, the extra is refunded to your bank account.
FAQ
Is TDS an extra tax?
No. TDS is part of your income tax, collected in advance. It is adjusted against your total tax when you file your return, and any excess is refunded.
How do I get a refund of TDS?
File your income tax return. If the TDS deducted is more than your tax for the year, the department refunds the difference to your bank account after processing the return.
Is TDS deducted on FD interest for senior citizens?
Only if the interest from one bank is more than ₹1,00,000 in a year. Seniors with no tax payable can submit Form 121 to stop TDS completely.
What is Form 121?
It is the self-declaration that tells your bank or payer not to deduct TDS because your total income is below the taxable limit. From April 2026 it replaced both Form 15G and Form 15H.
What is section 393?
It is the section of the Income-tax Act, 2025 that contains almost all TDS rules from April 2026. It replaces old sections such as 194A, 194C, 194I and 194J, with the same rates.
Does this calculator cover TDS on salary?
No. TDS on salary depends on your full income, deductions and tax regime, so it needs a full income tax calculation.