TDS Calculator
TaxCalculate TDS deduction for FD interest, rent, professional fees, property purchase and more. Instant results for Indian taxpayers with rates shown.
Reviewed by the thecalcu.com team Ā· Last updated 25 June 2026
FD / Bank Interest
Threshold: per year per bank
TDS Deducted
What is a TDS?
A TDS Calculator computes the Tax Deducted at Source on a payment, the amount the payer must withhold and deposit with the Income Tax Department before remitting the balance to the recipient. TDS is India's primary mechanism for collecting direct tax at the point of payment, covering everything from FD interest and rental income to professional fees, contractor payments, and property purchases.
TDS is governed by Chapter XVII-B of the Income Tax Act, 1961, and covers over a dozen payment categories, each with its own section, rate, and exemption threshold. The rate applicable to a payment depends on three factors: the nature of the payment (which determines the section), whether the recipient has furnished a valid PAN (missing PAN triggers Section 206AA, raising the rate to a minimum of 20%), and whether the payment amount exceeds the specified threshold for that section.
Understanding your TDS liability before making or receiving a payment matters for two distinct reasons. For deductors, businesses, landlords, and individuals, failing to deduct TDS or depositing the wrong amount triggers interest (1% per month for non-deduction, 1.5% per month for late deposit) and can result in disallowance of the payment as a business expense. For recipients, employees, freelancers, FD holders, and property sellers, knowing the expected TDS helps in planning quarterly advance tax payments and ensures no surprises when the net amount hits the account.
This calculator covers the nine most common TDS sections in India, including Section 194A (FD and bank interest), Section 194I (rent), Section 194J (professional and technical fees), Section 194C (contractor payments), Section 194H (commission and brokerage), and Section 194-IA (property purchase above ā¹50 lakh). It also models the Section 206AA rate for cases where PAN has not been furnished.
Unlike GST Calculator which computes the indirect tax component added to a transaction, TDS reduces the recipient's income, it is a direct tax collected upfront, recoverable through the ITR filing process.
Why Use a TDS Calculator?
The nine TDS sections covered by this calculator each have different rates and thresholds, and the applicable rate doubles (to 20%) if PAN is absent. Mentally tracking these combinations is error-prone, especially for businesses processing multiple types of vendor payments every month.
Instant section-specific calculation. Selecting the payment type auto-fills the correct section, rate, and threshold. You see immediately whether TDS applies (above threshold or not) and exactly how much to deduct, without looking up the rate in the Income Tax Act.
PAN impact in one click. Toggling the PAN Provided selector from Yes to No immediately shows the Section 206AA impact: a contractor payment of ā¹2 lakh goes from ā¹2,000 TDS (1%) to ā¹40,000 TDS (20%). This makes the cost of missing PAN documentation viscerally clear.
Threshold check for borderline payments. For small payments near the threshold, for example, FD interest of ā¹38,000 on a ā¹40,000 limit, the calculator confirms whether TDS applies and how far the payment is from triggering it. This is especially useful for businesses deciding whether to split or aggregate payments across financial years.
Pre-filing reconciliation. Recipients can use this calculator to verify that the TDS deducted by the payer matches the correct rate, before checking their Form 26AS.
Who Should Use This Calculator?
Businesses and companies making vendor payments. Any entity paying contractors, professionals, or agents above the specified threshold must deduct TDS and deposit it using a challan by the 7th of the following month. This calculator helps accounts teams verify the correct TDS before processing payments, particularly when the vendor has or has not provided PAN.
Freelancers and consultants receiving professional fees. If you are a freelancer receiving payments above ā¹30,000 per year from a single client, TDS at 10% (or 2% for technical services) is deducted before you are paid. Knowing the expected TDS helps you plan your quarterly advance tax payments accurately and ensures your Form 26AS reconciles correctly when filing your ITR.
FD holders and depositors. Banks deduct TDS on FD interest once it exceeds ā¹40,000 per year (ā¹50,000 for senior citizens). If your FD interest is near this limit, this calculator shows exactly when TDS will start applying and helps you decide whether to submit Form 15G/15H.
Landlords and tenants paying high rents. Tenants paying annual rent above ā¹2.4 lakh to a resident Indian must deduct TDS at 10% under Section 194I. For NRI landlords, different rules apply (Sec 195, typically 30%). This calculator covers the resident Indian scenario and helps both parties understand the net payment.
Property buyers. When purchasing property above ā¹50 lakh, the buyer must deduct 1% TDS under Section 194-IA and deposit it via Form 26QB within 30 days. Use this calculator alongside the Home Loan EMI Calculator to get a complete picture of the cash flows involved in a property purchase.
What Insights Does the TDS Calculator Give You?
TDS Deducted is the primary output, the exact rupee amount the payer must withhold before remitting the payment. This figure must match what is deposited with the Income Tax Department and reported in the TDS return (Form 24Q for salary, Form 26Q for others, Form 27Q for NRIs). Any discrepancy between what is deducted and what is deposited attracts interest and penalty.
Net Amount Payable is the amount the recipient actually receives, payment amount minus TDS. For a ā¹1 lakh FD interest payment at 10% TDS, the recipient gets ā¹90,000 in hand; the remaining ā¹10,000 goes to the government on their behalf. This output helps recipients know exactly what to expect in their bank account.
TDS Rate Applied shows the effective rate used in the calculation. When PAN is provided, this matches the statutory rate for the section. When PAN is absent, it jumps to 20% under Section 206AA, and this output makes that rate change explicit. A 0% rate indicates the payment is below the threshold and TDS does not apply.
TDS Threshold shows the statutory threshold for the selected payment type. Payments at or below this amount are exempt from TDS entirely. Seeing this number alongside your payment amount lets you quickly judge whether you are safely below, right at the edge, or clearly above the limit, and the Section Info card above the result explicitly flags which situation applies.
How to use this TDS calculator
Select the Payment Type, choose the correct TDS section from the dropdown. Each option shows the section number and applicable rate. If you are unsure which section applies, select the type that best describes the nature of the payment: FD/bank interest (194A), rent for a building (194I), professional consultancy fees (194J), contractor/sub-contractor work (194C), commission or brokerage (194H), or a property transaction above ā¹50 lakh (194-IA).
Enter the Payment Amount, the gross payment amount before any deduction, in rupees. For FD interest, enter the total interest earned from one bank in the financial year. For rent, enter the annual rent payable. For property purchase, enter the total transaction value. Do not enter the net amount, the calculator derives the net from the gross.
Set PAN Provided, select "Yes" if the recipient has furnished a valid PAN, or "No" if PAN is unavailable or invalid. The PAN status directly determines whether the standard rate or the higher 20% Section 206AA rate applies. Always verify PAN at the time of payment, collecting it retrospectively after a dispute is far more difficult.
Read the Section Info card, this shows the applicable section code, the with-PAN and without-PAN rates, the threshold limit, and a coloured status badge indicating whether TDS is applicable (orange) or not (green). If the amount is below the threshold, the card also shows how much more is needed before TDS triggers.
Review TDS Deducted and Net Amount, these are the two numbers the deductor needs for payment processing and the recipient needs for cash flow planning. If TDS Rate Applied shows 0%, the payment falls below the threshold and no deduction is required.
Expand "How was this calculated?", the step-by-step breakdown confirms the section applied, the threshold check, the rate used, and the arithmetic. This is useful for explaining the deduction to a vendor or client who queries the net amount received.
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Formula & Methodology
TDS calculation follows a straightforward formula once the applicable rate and threshold are determined: If Payment Amount > Threshold: TDS = Payment Amount Ć TDS Rate Ć· 100 Net Amount = Payment Amount ā TDS If Payment Amount ā¤ Threshold: TDS = 0 Net Amount = Payment Amount PAN not provided (Section 206AA): Effective Rate = max(Applicable Rate, 20%) Variables: - Payment Amount (P) = Gross payment before TDS (ā¹) - TDS Rate (r) = Section-specific rate or 20% under Sec 206AA - Threshold = Statutory exemption limit for the section Worked example, FD interest of ā¹1,50,000, PAN provided: Section: 194A | Threshold: ā¹40,000 | Rate: 10%ā¹1,50,000 > ā¹40,000 ā TDS applicableTDS = ā¹1,50,000 Ć 10% = ā¹15,000Net = ā¹1,50,000 ā ā¹15,000 = ā¹1,35,000 Same example, PAN not provided: Section 206AA rate = max(10%, 20%) = 20%TDS = ā¹1,50,000 Ć 20% = ā¹30,000Net = ā¹1,50,000 ā ā¹30,000 = ā¹1,20,000 Worked example, Property purchase of ā¹75,00,000, PAN provided: Section: 194-IA | Threshold: ā¹50,00,000 | Rate: 1%ā¹75,00,000 > ā¹50,00,000 ā TDS applicableTDS = ā¹75,00,000 Ć 1% = ā¹75,000Net = ā¹75,00,000 ā ā¹75,000 = ā¹74,25,000 Assumptions and limitations: - This calculator applies the standard TDS rates for resident Indians under the Income Tax Act. Lower rates under Double Taxation Avoidance Agreements (DTAAs) for NRI payments are not modelled - Surcharge and health & education cess (4%) on TDS are not included, these apply only in specific cases (e.g., salary TDS above ā¹50 lakh, NRI payments) - The threshold for Section 194A reflects the ā¹40,000 limit applicable to banks; the ā¹50,000 limit for senior citizens must be verified separately - This calculator does not model Section 194M (5% TDS on contract/professional payments by individuals/HUF above ā¹50 lakh)
Frequently Asked Questions