Free TDS Calculator 2025-26
Tax Deducted at Source Made Simple
Calculate TDS on salary, FD interest, rent, professional fees & contract payments. Updated with all FY 2025-26 rates, latest threshold limits, and section references.
| Month | Gross Salary | Monthly TDS | Cumulative TDS | Net Salary |
|---|
What is TDS (Tax Deducted at Source)?
TDS, or Tax Deducted at Source, is one of India’s most important tax collection mechanisms. Under this system, the payer deducts a portion of the payment as tax before handing over the remaining amount to the recipient. The deducted amount is then deposited with the Income Tax Department on behalf of the payee.
Think of it this way: instead of waiting for citizens to pay their taxes at year-end, the government collects tax at the source of income itself — ensuring steady revenue flow and reducing tax evasion. Your employer, bank, landlord or client acts as a tax collector on behalf of the government.
How to Calculate TDS — The Formula
TDS calculation varies by income type, but the core logic is always the same: find the taxable base, apply the applicable TDS rate, and round to the nearest rupee.
TDS Rate Chart FY 2025-26 (AY 2026-27)
The table below covers the most common TDS sections applicable to salaried individuals, businesses, and investors in India as of FY 2025-26:
| Section (Old Act) | Nature of Payment | Threshold Limit | TDS Rate |
|---|---|---|---|
| 192 | Salary Income | Basic exemption limit | As per slab |
| 193 | Interest on Securities | ₹10,000/year | 10% |
| 194A | FD/Bank Interest (Bank/Post Office) | ₹50,000/year (₹1L for seniors) | 10% |
| 194A | Interest – Other Sources | ₹10,000/year | 10% |
| 194C | Contractor (Individual/HUF) | ₹30,000 per payment / ₹1L aggregate | 1% |
| 194C | Contractor (Company/Other) | ₹30,000 per payment / ₹1L aggregate | 2% |
| 194H | Commission / Brokerage | ₹20,000/year | 2% (reduced from 5%) |
| 194I | Rent – Land/Building/Furniture | ₹50,000/month | 2% |
| 194I | Rent – Plant & Machinery | ₹50,000/month | 2% |
| 194IB | Rent by Individual/HUF | ₹50,000/month | 2% |
| 194J | Professional Fees (Doctors, CA, Lawyers) | ₹50,000/year | 10% |
| 194J | Technical Services / Call Centre | ₹50,000/year | 2% |
| 194T | Payments to Partners (New from Apr 2025) | ₹20,000/year | 10% |
| 194O | E-commerce participants | ₹5L via digital mode | 0.10% |
Worked Example — TDS on Salary FY 2025-26
Let’s calculate TDS for Rahul, a salaried employee in Delhi earning ₹12 lakh per year (New Tax Regime):
| Particulars | Amount |
|---|---|
| Gross Salary (CTC) | ₹12,00,000 |
| Less: Standard Deduction | – ₹75,000 |
| Net Taxable Salary | ₹11,25,000 |
| Tax on ₹0–₹4L (Nil) | ₹0 |
| Tax on ₹4L–₹8L @ 5% | ₹20,000 |
| Tax on ₹8L–₹11.25L @ 10% | ₹32,500 |
| Subtotal Tax | ₹52,500 |
| Add: 4% Health & Education Cess | ₹2,100 |
| Total Annual TDS | ₹54,600 |
| Monthly TDS Deduction | ₹4,550/month |
5 Smart Ways to Reduce Your TDS Liability
- Submit Form 15G / 15H to your bank if your total income is below the taxable limit. This prevents TDS deduction on FD interest entirely. From April 2026, Form 121 under the new Income Tax Act replaces these forms.
- Max out Section 80C investments (₹1.5L limit) via ELSS, PPF, NPS, or life insurance. This directly reduces your taxable salary and monthly TDS under the old regime.
- Claim Section 80D health insurance premiums (₹25,000–₹50,000 for senior parents). Submit investment declarations to your employer at the start of the financial year.
- Always furnish PAN to every deductor — bank, employer, landlord, client. Without PAN, TDS is deducted at 20%, which is 2× the normal rate on FD interest.
- If your annual income is within the rebate limit of ₹12 lakh (new regime), file ITR and claim full refund of any TDS deducted by banks or other parties during the year.
TDS Deposit Due Dates & Penalties
Deductors must deposit TDS with the government within strict timelines. Missing these deadlines attracts interest and penalties:
| TDS Deduction Month | Deposit Due Date | Late Fee (Sec 234E) |
|---|---|---|
| April to February | 7th of the next month | ₹200/day of default |
| March | 30th April | ₹200/day of default |
| TDS on Purchase of Property | 30 days from end of deduction month | ₹200/day of default |
| Interest for late deposit | — | 1.5% per month (Sec 201) |
| Quarterly TDS return (Form 24Q/26Q) | 15th of month after quarter end | ₹200/day of default |