How to use the TDS calculator
- Pick the type of payment, such as rent, professional fees or FD interest.
- Enter the amount: the yearly total for fees and interest, the monthly rent for rent, or the price for property.
- Choose who is being paid and whether they have given a PAN.
- Read the TDS rate, the amount to deduct, the threshold and the section to quote.
How TDS is worked out
TDS = payment × rate, once the payment crosses the threshold
Thresholds work as a switch: once crossed, TDS is due on the whole amount. Without a valid PAN the rate becomes 20% (or the normal rate, if higher). Salary is different: your employer estimates your tax for the year at slab rates and deducts it evenly from each month's pay.
TDS examples
| Payment | Rate | TDS |
|---|---|---|
| FD interest of ₹80,000 in the year | 10% | ₹8,000 |
| Rent of ₹75,000 a month paid by a salaried tenant | 2% | ₹18,000 |
| Professional fees of ₹1.2 lakh | 10% | ₹12,000 |
| Contractor bill of ₹40,000 to a company | 2% | ₹800 |
| Flat bought for ₹80 lakh | 1% | ₹80,000 |
| Professional fees of ₹1.2 lakh, no PAN | 20% | ₹24,000 |
TDS on salary in the new regime
| Annual salary | TDS for the year | TDS a month |
|---|---|---|
| ₹8,00,000 | ₹0 | ₹0 |
| ₹12,75,000 | ₹0 | ₹0 |
| ₹15,00,000 | ₹97,500 | ₹8,125 |
| ₹20,00,000 | ₹1,92,400 | ₹16,033 |
| ₹30,00,000 | ₹4,75,800 | ₹39,650 |
With the ₹75,000 standard deduction and the rebate, there is no TDS on salary up to ₹12.75 lakh in the new regime. For the old regime and deductions, use the income tax calculator.
New and old TDS sections
| Payment | Income-tax Act, 2025 | 1961 Act |
|---|---|---|
| Salary | Section 392 | 192 |
| Interest on deposits (bank, post office, co-op) | Section 393(1), table serial 5(ii) | 194A |
| Rent of land, building or furniture | Section 393(1), table serial 2(ii) | 194-I(b) |
| Rent of plant, machinery or equipment | Section 393(1), table serial 2(ii) | 194-I(a) |
| Rent paid by a salaried person or small business | Section 393(1), table serial 2(i) | 194-IB |
| Professional fees | Section 393(1), table serial 6(iii) | 194J |
| Fees for technical services, royalty on films | Section 393(1), table serial 6(iii) | 194J |
| Contractor or sub-contractor | Section 393(1), table serial 6(i) | 194C |
| Commission or brokerage | Section 393(1), table serial 1(ii) | 194H |
| Dividend | Section 393(1), table serial 7 | 194 |
| Purchase of property (other than farmland) | Section 393(1), table serial 3(i) | 194-IA |
Interest from a bank, co-operative bank or post office has a ₹50K threshold; interest from anyone else, such as a company deposit, has a ₹10,000 threshold.
Frequently asked questions
What changed in TDS from 1 April 2026?
The Income-tax Act, 2025 replaced the 1961 Act from tax year 2026-27. TDS on salary moved to Section 392 and almost every other TDS item to the table in Section 393, so 194A, 194C, 194J and the rest are now serial numbers in Section 393(1). Rates and thresholds carried over unchanged, but payment codes in the TDS return are new.
When does a bank deduct TDS on FD interest?
When your total interest from that bank is more than ₹50,000 in the tax year, or ₹1 lakh if you are 60 or older. The rate is 10%, or 20% without a PAN. If your income is below the taxable limit, submit Form 15G or 15H to stop the deduction.
Do I need to deduct TDS on the rent I pay?
If you are salaried (or a small business not under audit) and your rent is more than ₹50,000 a month, you must deduct 2% under Section 393(1) serial 2 (earlier 194-IB), once a year from the last month's rent. On ₹75,000 a month that is ₹18,000. You file Form 26QC with your PAN; no TAN is needed.
What is the TDS rate on professional fees?
10% once fees to the same person cross ₹50,000 in the year (raised from ₹30,000 from April 2025). Fees for technical services, as opposed to professional services, attract 2%. Fees or commission paid to a company director attract 10% from the first rupee.
What happens if the payee does not give a PAN?
TDS is deducted at the higher of the normal rate and 20% under Section 397(2) of the Income-tax Act, 2025 (earlier 206AA). A PAN that is not linked to Aadhaar is inoperative and is treated as no PAN.
Is TDS on buying property deducted on the full price?
Yes. If the price (or the stamp duty value, if higher) is ₹50 lakh or more, the buyer deducts 1% of the whole amount, not just the part above ₹50 lakh, and deposits it with Form 26QB. Different, higher rates apply if the seller is a non-resident.
Is TDS my final tax?
No. TDS is an advance payment of the payee's tax. It shows in Form 26AS and the Annual Information Statement, and is set off against the tax worked out in the return. If too much was deducted, you get a refund.