TDS Calculator 2026
Estimate Tax Deducted at Source (TDS) on salary, interest, rent, and other income with category-wise thresholds.
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TDS (Tax Deducted at Source) affects almost every financial transaction you make — from your salary and bank FD interest to rent payments and professional fees. Understanding TDS rates and thresholds helps you plan your taxes better and avoid unwanted deductions at source. Use the calculator above to estimate TDS for different income types. Check your total tax liability with the income tax calculator or estimate your in-hand salary.
TDS Rates for Common Payment Types — FY 2026-27
| Section | Payment Type | TDS Rate | Threshold Limit |
|---|---|---|---|
| 192 | Salary Income | As per slab | Basic exemption limit |
| 194A | Bank FD / Interest | 10% | ₹40,000 (₹50k for senior citizens) |
| 194B | Lottery / Game Show Winnings | 30% | ₹10,000 |
| 194C | Contractor / Sub-Contractor | 1% / 2% | ₹30,000 single / ₹1L annual |
| 194H | Commission / Brokerage | 5% | ₹15,000 |
| 194I | Rent (Plant / Machinery) | 2% | ₹2,40,000 annual |
| 194I | Rent (Land / Building) | 10% | ₹2,40,000 annual |
| 194J | Professional / Technical Fees | 10% | ₹30,000 |
| 194O | E-Commerce Participant | 1% | ₹5,00,000 annual |
Rates are for Indian residents. Non-residents and NRIs may have different TDS rates. Always check the latest CBDT circular.
TDS Calculation Examples for Different Incomes
| Income Type | Annual Amount | Threshold Crossed? | TDS Deducted |
|---|---|---|---|
| FD Interest (Age: 35) | ₹35,000 | No | ₹0 |
| FD Interest (Age: 35) | ₹60,000 | Yes | ₹6,000 |
| FD Interest (Age: 65) | ₹55,000 | No (₹50k limit) | ₹0 |
| Rent (Building) ₹40k/month | ₹4,80,000 | Yes (₹2.4L) | ₹48,000 |
| Contractor Payment (Individual) | ₹1,00,000 | Yes | ₹1,000 |
| Professional Fees (Doctor) | ₹75,000 | Yes (₹30k) | ₹7,500 |
Tips to Minimize TDS Deduction
Submit Form 15G/15H
If your total income is below the taxable limit, submit Form 15G (below 60) or 15H (senior citizen) to banks to avoid TDS on interest income.
Declare Investments to Employer
Submit investment proofs for 80C, 80D, HRA, and home loan to your employer so they deduct lower TDS from your salary throughout the year.
File Returns to Avoid Higher TDS
If you did not file ITR for the past 2 years and your total interest income exceeds ₹50,000, TDS will be deducted at 20% instead of the standard rate.
Check TDS on Property Purchase
When buying property worth ₹50L+, you must deduct TDS at 1% under Section 194IA before making payment to the seller, and file Form 26QB.
How to Calculate TDS
In plain words
Tax Deducted at Source (TDS) is a mechanism where the payer deducts tax before making payment to the payee. The deducted amount is deposited with the government and credited to the payee's tax account. Different TDS rates apply for different types of payments, and thresholds determine when TDS becomes applicable.
TDS = Payment Amount × Applicable TDS Rate
Common TDS Rates (FY 2026-27):
Salary: As per income tax slab
Interest on FD (194A): 10% (above ₹40,000)
Rent (194I): 10% (Plant/Machinery 2%)
Professional Fees (194J): 10%
Contractor (194C): 1% (Individual) / 2% (Others)A quick example
Let us calculate TDS for common scenarios:
Step by step
- 1.TDS on Salary: Calculated as per income tax slab. For ₹12L gross with std deduction of ₹75,000, taxable = ₹11.25L. Approx TDS/month = ₹6,000
- 2.TDS on FD Interest: ₹60,000 @ 10% = ₹6,000 (deducted by bank)
- 3.TDS on Rent: ₹3,00,000 @ 10% = ₹30,000 (deducted by tenant if rent > ₹50,000/month)
- 4.Total TDS deducted during the year ≈ ₹1,08,000
So the answer is: TDS on Salary ≈ ₹72,000/yr | TDS on FD Interest = ₹6,000 | TDS on Rent = ₹30,000 | Total TDS ≈ ₹1,08,000/year