TDS Calculator
Calculate Tax Deducted at Source for FD interest, rent, professional fees, contractor payments, and more under FY 2026-27 rules.
TDS Details
$50,000
$60,000
TDS Amount
$5,000
Net Payment
$45,000
TDS Rate Applied
10%
Gross Payment
$50,000
194A â Interest on FD / Bank Deposits
10%
20%
30%
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Understanding TDS in India
Tax Deducted at Source (TDS) is India's mechanism for collecting tax at the point of payment rather than waiting for the recipient to file returns. The Income Tax Act mandates TDS on various payment types â salaries, interest income, rental income, contractor payments, professional fees, and more. Each payment category has its own TDS section number, rate, and annual threshold below which TDS is not applicable.
- Section 194A: TDS on FD/bank interest â 10% above âš40,000/year
- Section 194I: TDS on rent â 10% (land/building) above âš2.4L/year
- Section 194J: TDS on professional fees â 10% above âš30,000
TDS Rate Chart 2026-27
TDS rates are updated in the Union Budget each year. For FY 2026-27, the key rates remain: 10% on FD interest (194A), 1% on contractor payments (194C), 10% on professional fees (194J), and 10% on rent for land/building (194I). Always verify rates at incometaxindia.gov.in before deducting as rates may be updated mid-year by notification.
Disclaimer: TDS thresholds and rates are subject to change. This calculator reflects rates as of July 2026. Verify at incometaxindia.gov.in before deducting.
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What is TDS (Tax Deducted at Source)?
TDS is a mechanism where the payer deducts income tax at source before making payment to the recipient. The deducted amount is deposited with the government on behalf of the recipient. TDS applies to salaries, FD interest, rent, contractor payments, professional fees, and more.
What is the TDS rate on FD interest?
TDS on FD interest (Section 194A) is 10% for resident individuals with PAN. If annual FD interest exceeds âš40,000 (âš50,000 for senior citizens). Without PAN, TDS is deducted at 20%.
What happens if I don't have a PAN?
Without a PAN, TDS is deducted at 20% or double the applicable rate, whichever is higher. This is significantly higher than the standard rate, so always link your PAN to prevent excess TDS deduction.
What is TDS for NRI?
TDS rates for NRIs are generally higher than for resident Indians. For FD interest (194A), NRI rate is 30%. Additionally, surcharge and cess may apply. Consult a CA for NRI-specific situations.
How do I claim TDS refund?
If TDS deducted is more than your actual tax liability, you can claim a refund by filing your Income Tax Return (ITR). The excess TDS will be refunded to your bank account after processing.