TDS Calculator India 2026 — Calculate TDS on Salary, FD, Rent, Property & Fees
Calculate Tax Deducted at Source (TDS) on salary, fixed deposit interest, rent, property sale, and professional fees using 2026 rates and thresholds.
Calculate TDS
Disclaimer: This is an estimated calculation based on 2026 TDS rates. Actual TDS may vary based on your income slab, regime, PAN status, and other factors. Consult a tax advisor for accurate TDS computation.
TDS Rates Summary (FY 2026-27)
| Section | Payment Type | Threshold | TDS Rate (With PAN) | TDS Rate (No PAN) |
|---|---|---|---|---|
| 192A | Salary | As per slab | 0%-30% | 30% flat |
| 194A | FD Interest | ₹40,000/year | 10% | 20% |
| 194A (Senior) | FD Interest (60+) | ₹50,000/year | 10% | 20% |
| 194-IB | Rent (> ₹50K/mo) | ₹50,000/month | 2% | 5% |
| 194-IB (Annual) | Rent (> ₹2.4L/yr) | ₹2,40,000/year | 5% | 5% |
| 194-IA | Property Sale | ₹50,00,000 | 1% | 1% |
| 194J | Professional Fees | ₹30,000 | 10% | 10% |
| 194C | Contractor Payment | ₹30,000 | 5%-10% | 20% |
| 194H | Commission | ₹15,000 | 5% | 20% |
| 194N | Cryptocurrency Purchase | ₹50,000 | 1% | 1% |
What is TDS and How Does It Work?
TDS (Tax Deducted at Source) is a mechanism used by the Indian government to collect income tax in advance. When you receive income such as salary, interest, rent, or professional fees, the payer is required by law to deduct a portion of it and deposit it directly to the government on your behalf. This deducted amount is called TDS.
The TDS system serves multiple purposes: (1) It ensures collection of tax in installments rather than a lump sum at year-end, (2) It improves tax compliance by making deduction mandatory, (3) It provides liquidity to the government throughout the financial year. When you file your Income Tax Return (ITR), you claim this TDS as a credit against your total tax liability. If the total TDS paid exceeds your actual tax, you receive a refund. If it's less, you pay the balance with your return.
Who Must Deduct TDS?
Any person making payments falls under the following categories: (1) Employers deducting TDS on salary (Section 192A), (2) Banks deducting TDS on interest (Section 194A), (3) Landlords/Property managers deducting TDS on rent (Section 194-IB), (4) Buyers deducting TDS on property purchase (Section 194-IA), (5) Payers of professional fees/commissions/contractor payments.
The obligation to deduct TDS arises when the payment amount exceeds the prescribed threshold for that section. For salary, it depends on your income slab. For interest, it's ₹40,000/year; for rent, it's ₹50,000/month; for property sale, it's ₹50 lakh.
TDS Rates for Different Income Types (FY 2026-27)
1. TDS on Salary (Section 192A)
TDS on salary is deducted based on your income tax slab. The rates are progressive and depend on your gross salary, age, and other eligible deductions. Employers calculate and deduct TDS monthly based on your expected annual income and claim deductions under Sections 80C, 80D, etc.
Key Points: TDS on salary is deducted every month, employers provide Form 16 (TDS Certificate), you can adjust deductions with your HR to optimize TDS, NRIs face 30% flat rate on salary.
2. TDS on Fixed Deposit Interest (Section 194A)
Banks deduct TDS on FD interest at the following rates: With PAN and interest > ₹40,000/year: 10%, Without PAN: 20% (on full amount, no threshold), For Senior Citizens (60+ years) with PAN: 10% (threshold ₹50,000/year), For HUF/Company: 10%.
Example: FD interest of ₹60,000 → TDS = ₹6,000 (10%) → Net interest = ₹54,000. Without PAN: TDS = ₹12,000 (20%) → Net = ₹48,000. Senior citizen with PAN and ₹55,000 interest: TDS = ₹5,500 (10%) → Net = ₹49,500.
3. TDS on Rent (Section 194-IB)
Landlords/Property managers must deduct TDS on rent payments to individuals at the following rates: Monthly rent > ₹50,000: 2% TDS, Monthly rent ≤ ₹50,000: No TDS, Annual rent > ₹2,40,000: 5% TDS (if monthly > ₹50K not already applied).
Example: Monthly rent ₹60,000 → TDS = ₹1,200/month → Annual TDS = ₹14,400. For rent ₹40,000/month: No TDS (below threshold). Important: TDS applies only if the tenant is an individual; corporate tenants have different rules.
4. TDS on Property Sale (Section 194-IA)
When you sell a property, the buyer must deduct 1% TDS on the purchase price if it exceeds ₹50 lakh. This applies to all property transactions (residential, commercial, agricultural land with buildings).
Example: Property sold for ₹1 crore → TDS = ₹1,00,000 (1%). This TDS is deducted and credited to your account (usually through bank/counsel). You claim this TDS in your ITR when filing returns on the capital gains.
5. TDS on Professional Fees (Section 194J)
Businesses deduct TDS at 10% on payments to professionals if a single payment exceeds ₹30,000 (or cumulative payments in a financial year exceed ₹30,000 without a valid PAN).
Example: Payment to a consultant = ₹1,00,000 → TDS = ₹10,000 (10%) → Net payment = ₹90,000.
Other Important TDS Sections
- Section 194C (Contractor Payments): 5%-10% TDS on contractor/subcontractor payments (varies by nature of work)
- Section 194H (Commission): 5% TDS on commission payments (₹15,000+ threshold)
- Section 194N (Cryptocurrency): 1% TDS on purchase of virtual digital assets exceeding ₹50,000
- Section 194LA (Mutual Fund Redemption): 20% TDS on capital gains (above ₹1 lakh per financial year)
- Section 194LB (Lottery Winnings): 30% TDS on lottery winnings
What is Form 26AS and AIS?
Form 26AS (TDS Certificate): An annual consolidated statement issued by the government showing all TDS deducted in your name. It includes TDS from salary (Form 16), interest, rent, professional fees, etc. Available on the income tax portal after March 31 each year. Use this to verify all TDS entries and claim them in your ITR.
AIS (Annual Information Statement): Similar to 26AS but includes additional information such as cash deposits, foreign assets, and other financial transactions. It's a broader statement combining TDS and other financial data reported to the IT department.
How to Check: Login to https://www.incometaxindiaefiling.gov.in, go to the "View" menu, and select "26AS" or "AIS". Download and cross-check with your own records.
How to File TDS Return if You're a Deductor
If you are a business owner, employer, or property owner and are required to deduct TDS, you must file TDS returns quarterly or annually: (1) TDS return is filed using Form 24Q (for Section 194 — payments like interest, rent, commissions), Form 24G (for Section 192A — salary), (2) Deadline: 15th of the month following the quarter (e.g., July 15 for June quarter), (3) Penalties: Late filing attracts penalties, non-filing can result in prosecution, (4) Use the online system at https://www.tdscpc.gov.in/
As a salary earner, your employer files TDS returns for you, and you receive Form 16 before March 31.
How to Claim TDS Refund
- Check Form 26AS: Login to the income tax portal and verify all TDS credits for the year
- File ITR: File your Income Tax Return (ITR-1, ITR-2, or relevant form) with accurate income and TDS details
- Claim TDS Credit: In the ITR, there's a section for claiming tax credit. Fill in all TDS amounts from Form 26AS
- Calculate Refund: If total TDS (including advance tax) > your tax liability, the excess is your refund
- Submit ITR: E-file the ITR and wait for processing (usually 90-120 days)
- Receive Refund: Once processed, the refund is credited to your registered bank account
Tips to Reduce TDS Deduction
- Provide Valid PAN: Always provide your PAN to the deductor (employer, bank, landlord). With PAN, TDS rates are lower. Without PAN, 20% TDS applies to FD interest and higher rates to rent (5% instead of 2%)
- Claim Eligible Deductions: Inform your employer of eligible deductions under Section 80C (PPF, NSC, LIC), 80D (health insurance), 80E (education loan), 80G (charitable donations), 80CCD (NPS). These reduce your taxable income and hence TDS
- File ITR on Time: Filing ITR on time ensures you claim all TDS and get refunds timely. Non-filers lose this benefit
- Maintain Exemptions: Maintain proof of exemptions (e.g., senior citizen status, life insurance policies, medical bills for 80D) to claim higher exemptions and reduce TDS
- Update PAN with Banks/Deductors: If you provided an old/invalid PAN, get it updated immediately to avoid 20% TDS
- Rent Payments Under ₹50K/month: If possible, arrange rent such that monthly payments are below ₹50,000 to avoid TDS (though not advised, know the threshold)
- E-TDS Tracking: Monitor your TDS online via Form 26AS monthly to ensure correct deductions
TDS Refund Process & Timeline
Automatic Refund (e-filing): If you e-file your ITR and a refund is due, it's processed by the department. Timeline: 90-120 days typically, though it can take up to 6 months in complex cases. Refund is credited via electronic transfer (NEFT/RTGS) to your registered bank account.
Manual Refund Request: If you didn't file ITR but have excess TDS, file Form 139 (Refund Claim) within 1 year of the end of the financial year. This is processed similarly with penalties for late filing.
Provisional Refund: In case of hardship, you can apply for provisional refund during the year (Form 39) before filing your full ITR. Requires proof of financial hardship.
TDS for NRIs (Non-Resident Indians)
NRIs face higher TDS rates on Indian income: Salary: 30% flat rate (regardless of income level), Interest: 30% (or 10% if India-US tax treaty applies), Rent: 30% (no residential exemption), Professional Fees: 30%.
NRIs can claim treaty benefits by filing Form 10F with the deductor (employer, bank, landlord), which may reduce TDS to 5%-15% depending on the source country's tax treaty with India. Always file ITR to claim TDS refunds and treaty benefits.
Important Points to Remember
- TDS is a prepayment of tax; it does NOT reduce your total tax liability (only when filed in ITR)
- If TDS is not deducted when it should be, you're liable to pay the tax with interest and penalties
- Providing PAN is mandatory to reduce TDS; always have a valid, PAN-linked bank account and email with the deductor
- Higher education institutions, hospitals, and certain organizations have TDS exemption certificates (Form 80(G), 12A) and don't attract TDS
- TDS from different deductors can be claimed together in your ITR; there's no limit
- Dividend income, mutual fund redemptions, and lottery winnings have separate TDS rules and rates
- Interest on late TDS payment is charged at 12% per annum (Section 201)
- Always maintain a copy of TDS certificates (Form 16, 16A) for at least 5 years for income tax compliance
Frequently Asked Questions — TDS Calculator
What is TDS and how does it work?
TDS (Tax Deducted at Source) is a method of collecting income tax in India where the payer deducts a portion of the payment and deposits it directly to the government. It applies to salary, interest, rent, commissions, and professional fees. TDS acts as an advance tax payment. The deductor provides a TDS certificate (Form 16/16A), and you claim it as a credit during income tax filing. If TDS exceeds your actual tax liability, you get a refund. TDS rates vary by payment type and income threshold.
What are the TDS rates on FD interest in 2026?
TDS on fixed deposit interest (Section 194A): For individuals with PAN: 10% if FD interest exceeds ₹40,000 in FY; 20% if interest exceeds ₹50,000 for senior citizens (60+ years). For individuals without PAN: 20% on the full FD interest amount (no threshold). For HUF/non-individuals: varies by category. It is mandatory to provide PAN to avoid 20% TDS. Interest earned below the threshold is not subject to TDS.
How is TDS calculated on rent payments (Section 194-IB)?
TDS on rent (Section 194-IB) applies only to individual tenants (not corporate): 2% if monthly rent exceeds ₹50,000. No TDS if rent is ≤ ₹50,000/month. For annual rent > ₹2.4 lakh: 5% TDS applies (for individuals without PAN or non-compliance). TDS is deducted from the rent amount monthly. The property owner provides TDS certificate (Form 26AS). Rent includes only lease payments, not maintenance charges (if separately stated). Quarterly or monthly deduction applies based on rent period.
What is TDS on property sale (Section 194-IA)?
TDS on property sale (Section 194-IA): 1% of the purchase price if sale value exceeds ₹50,00,000 (₹50 lakh). Applies to all buyers purchasing residential or commercial property. 1% TDS is deducted by the purchaser and paid to the government. Exemptions: If the seller provides proof of tax compliance or if it is an exempted transaction. The TDS certificate is provided by the buyer's counsel or bank. Applicable on individual-to-individual or individual-to-entity transactions equally.
How do I claim TDS refund?
To claim TDS refund: (1) File ITR (Income Tax Return) if your total income exceeds the filing threshold. (2) Check Form 26AS on the income tax portal to verify all TDS entries. (3) Claim TDS credit in ITR under 'TDS' column against the relevant section. (4) If TDS exceeds your tax liability, the excess is refunded. (5) Refunds are typically processed within 90-120 days after e-filing. (6) If you did not file ITR, you can file a refund claim (Form 139) within 1 year. Keep all TDS certificates (Form 16, 16A) for records.
What is the difference between TDS for NRIs vs resident Indians?
TDS for NRIs is higher: On interest/dividend: 30% for NRI (or 10% if treaty applies) vs 10% for resident (with PAN). On salary: 30% for NRI (flat rate) vs progressive slabs for resident. On rent: 30% for NRI (no PAN available) vs 2%-5% for resident. NRIs must provide valid passport/visa proof. Treaty benefits require Form 10F filing. Resident status is determined by physical presence in India during the FY. NRIs benefit from India's tax treaties with other countries (DTAA), allowing lower rates.
This TDS calculator is for educational purposes only. Actual TDS deduction depends on your income slab, regime, PAN status, residential status, and other tax factors. TDS rates are subject to change as per budget announcements. Please consult a qualified tax professional or Chartered Accountant for accurate TDS calculations.