TDS Calculator - Estimate Tax Deducted at Source

TDS Calculator for FY 2025-26: Section-Wise Calculation Made Simple

Tax Deducted at Source affects almost every earning Indian. Your employer deducts it from salary. Your bank deducts it from fixed deposit interest. Your clients deduct it from professional fees. Yet most people only discover the deduction after the money is gone.

The PlanMyReturns TDS calculator solves this. Select your payment type, enter the amount, and see the exact TDS, the applicable section, the threshold, and your net amount in hand. It uses the updated FY 2025-26 rates and thresholds announced in Budget 2025, and also supports FY 2024-25 for older calculations. Everything runs privately in your browser, with no sign-up and no data stored.

What Is TDS (Tax Deducted at Source)?

TDS is a system under the Income Tax Act, 1961 where the person making a payment deducts tax before paying you. The deductor deposits this tax with the government against your PAN. It appears in your Form 26AS and Annual Information Statement (AIS), and you claim it as credit when filing your income tax return.

TDS is not an extra tax. It is an advance collection of your income tax. If your final tax liability is lower than the TDS deducted, you get a refund after filing your ITR. If it is higher, you pay the balance.

Key Features of This TDS Calculator

This calculator goes beyond a basic rate lookup. Here is what it does:

• Covers six payment types: salary (192), interest (194A), professional fees (194J), rent (194I), contractor payments (194C) and dividends (194)
• Applies correct FY 2025-26 thresholds updated after Budget 2025, with an FY 2024-25 toggle
• Handles PAN available and PAN not available cases, applying the higher 20% rate under Section 206AA when PAN is missing
• Adjusts rates for resident and non-resident payees, including 10% surcharge on non-resident payments above ₹50 lakh
• Adds 4% Health and Education Cess as an optional toggle
• Calculates salary TDS using the new tax regime with the ₹75,000 standard deduction and Section 87A rebate
• Shows section, effective rate, threshold, base TDS, surcharge, cess, net amount received and the TDS certificate you should expect
• Includes quick scenario presets, a shareable link, a share image option and CSV download of the full breakdown

TDS Thresholds for FY 2025-26: What Changed in Budget 2025

Budget 2025 raised several TDS thresholds from 1 April 2025. This is the single most important update most calculators still miss.

If your payment is below the threshold, no TDS applies at all. The calculator checks this automatically and tells you when your amount is safely under the limit.

TDS Rates by Section for FY 2025-26

Non-residents face different rates under Section 195, often 20% to 30% plus surcharge and cess, subject to DTAA relief. The calculator applies the standard non-resident rates when you select non-resident status.

How TDS Is Calculated

For Non-Salary Payments

The formula is straightforward once the payment crosses the threshold:

TDS = Payment Amount × Applicable Rate

Then, where applicable:

Total TDS = Base TDS + Surcharge + 4% Health and Education Cess

Surcharge generally applies only to non-resident payments above ₹50 lakh. For most resident payments, TDS is just the base rate, and cess is typically applied on salary TDS and non-resident deductions.

For Salary (Section 192)

Salary TDS works differently. There is no flat rate. Your employer estimates your annual tax liability using the applicable income tax slabs, then deducts one twelfth of it every month.

This calculator uses the FY 2025-26 new tax regime:

1. Gross salary minus ₹75,000 standard deduction gives taxable income
2. Slab rates apply: nil up to ₹4 lakh, then 5%, 10%, 15%, 20%, 25% and 30% in ₹4 lakh bands, with 30% above ₹24 lakh
3. Section 87A rebate makes tax zero if taxable income is up to ₹12 lakh
4. 4% cess is added on the final tax

The practical effect: a salary up to ₹12.75 lakh attracts zero TDS under the new regime. Use our Income Tax Calculator to compare regimes in detail.

Step-by-Step: How to Use This TDS Calculator

1. Select the income or payment type from the dropdown
2. Enter the annual payment amount, or gross salary for the salary option
3. Choose payee type: Individual/HUF or Firm/Company (this changes the 194C rate)
4. Select residential status: resident or non-resident
5. Set PAN status. Missing PAN triggers the 20% rate
6. Toggle surcharge and cess inclusion
7. Pick the financial year: FY 2025-26 or FY 2024-25
8. Click Calculate

The summary shows TDS deducted, effective rate, threshold and net amount received. The breakdown table below itemizes base TDS, surcharge, cess and the certificate type. You can download the full breakdown as CSV or share it as a link or image.

Practical TDS Examples for FY 2025-26

Example 1: Bank FD Interest of ₹1,00,000

Section 194A applies. The threshold is ₹50,000, so TDS is deducted on the full ₹1,00,000 at 10%. TDS comes to ₹10,000 and you receive ₹90,000. A senior citizen with the same interest pays zero TDS, because their threshold is ₹1,00,000.

Example 2: Professional Fees of ₹2,00,000

Section 194J applies. The amount exceeds the ₹50,000 threshold, so TDS at 10% equals ₹20,000. The freelancer receives ₹1,80,000 and claims the ₹20,000 as credit in their ITR. Without PAN, the deduction doubles to ₹40,000.

Example 3: Office Rent of ₹8,00,000 Per Year

Section 194I applies since annual rent exceeds ₹6,00,000. TDS at 10% equals ₹80,000. Note that under the old FY 2024-25 threshold of ₹2,40,000, far more tenants had to deduct TDS. The Budget 2025 hike freed most small rent arrangements from TDS entirely.

Example 4: Salary of ₹15,00,000

Section 192 applies. After the ₹75,000 standard deduction, taxable income is ₹14,25,000. New regime tax works out to roughly ₹97,500 plus 4% cess, around ₹1,01,400 annually, or about ₹8,450 deducted per month. Run your exact figure in the calculator above, and check your in-hand pay with the Take Home Salary Calculator.

What Happens When PAN Is Not Provided

Section 206AA mandates TDS at 20% (or the applicable rate, whichever is higher) when the payee does not furnish PAN. A freelancer earning ₹1,00,000 in fees loses ₹20,000 instead of ₹10,000. Worse, without PAN the credit may not reflect properly in Form 26AS, making refunds harder. Always share your PAN with deductors.

How to Reduce or Avoid TDS Legally

• Form 15G or 15H: If your total income is below the taxable limit, submit Form 15G (below 60) or Form 15H (senior citizens) to your bank to stop TDS on interest
• Section 197 certificate: Apply to the Assessing Officer for a lower or nil deduction certificate if your actual tax liability is lower than standard TDS
• Spread deposits: Senior citizens can keep interest per bank within the ₹1,00,000 threshold
• File ITR on time: Excess TDS comes back as a refund with interest under Section 244A

TDS vs Income Tax vs Advance Tax

If TDS does not cover your full liability, you may owe advance tax. Estimate it with the Advance Tax Calculator.

Common TDS Mistakes to Avoid

1. Assuming TDS is the final tax. It is only a prepayment. Your slab decides the real liability
2. Not checking Form 26AS and AIS before filing. Mismatches delay refunds
3. Forgetting that interest across branches of the same bank is aggregated for the 194A threshold
4. Missing Form 15G/15H submission at the start of the financial year
5. Using old thresholds. Many sites still show the ₹2.4 lakh rent limit and ₹30,000 professional fees limit that ended in FY 2024-25
6. Ignoring TDS on dividends above ₹10,000 when planning equity income

Expert Tips

• Reconcile every TDS entry in your AIS with your own records each quarter, not just at filing time
• If you switched jobs mid-year, tell your new employer your previous income. Otherwise both employers apply the exemption and you face a tax shortfall
• Freelancers should track TDS certificates (Form 16A) quarterly. Deductors sometimes deposit late, and credit appears only after they file their TDS return
• Landlords crossing the ₹6 lakh rent threshold should factor the 10% deduction into cash flow planning

Sources and Methodology

Rates and thresholds on this page follow the Income Tax Act, 1961 as amended by the Finance Act, 2025, and rate schedules published by the Income Tax Department of India (incometaxindia.gov.in). Salary TDS uses the FY 2025-26 new regime slabs with the ₹75,000 standard deduction and Section 87A rebate. See our full Calculation Methodology for assumptions.

Last updated: 18 July 2026

Disclaimer: This calculator provides indicative estimates for informational purposes only. Actual TDS may vary with senior citizen status, Section 197 certificates, surcharge slabs and DTAA relief for non-residents. Consult the Income Tax Department or a qualified tax professional for definitive guidance.

Frequently Asked Questions