TDS Calculator for FY 2025-26
Calculate TDS on FD interest, rent, professional fees, contractor and commission - Section 194A, 194C, 194H, 194I, 194J
Payment Details
TDS Breakdown
TDS vs Net Amount
Estimates for FY 2025-26. Verify TDS amounts with your bank or CA for filing.
What is TDS and How Does It Work
TDS stands for Tax Deducted at Source. It is a mechanism under the Income Tax Act 1961 where the person making a payment - the payer - deducts a fixed percentage of tax before passing the remaining amount to the recipient. The deducted tax is then deposited directly with the government. This ensures continuous tax collection without waiting for the recipient to file a return.
The payer is called the "deductor" and the recipient is the "deductee." The deducted amount is reflected in the deductee's Form 26AS and AIS (Annual Information Statement) on the IT portal, and can be claimed as tax credit when filing the income tax return.
TDS applies to specific payment categories above defined threshold limits. For FY 2025-26, the Finance Act 2025 raised several thresholds - bank FD interest to Rs 50,000 (Rs 1,00,000 for senior citizens), rent to Rs 50,000 per month, and professional fees to Rs 50,000 per year. Once a threshold is crossed, TDS applies on the full payment amount - not just the excess over the threshold.
If the recipient does not provide their PAN, the TDS rate increases to 20% under Section 206AA - regardless of the normal applicable rate. Section 206AB, which previously imposed higher TDS on non-ITR-filers, was omitted entirely from April 1 2025.
TDS Rates for FY 2025-26
The table below lists TDS rates for the most common payment types under the Income Tax Act for FY 2025-26 (Assessment Year 2026-27). The Finance Act 2025 revised thresholds for several sections effective April 1 2025. Section 194H saw a rate reduction from 5% to 2% effective October 1 2024.
| Section | Nature of Payment | Threshold (FY 2025-26) | Rate (PAN) | Rate (No PAN) |
|---|---|---|---|---|
| 194A | FD / bank interest (general) | Rs 50,000/yr | 10% | 20% |
| 194A | FD / bank interest (senior citizen) | Rs 1,00,000/yr | 10% | 20% |
| 194C | Contractor - individual/HUF | Rs 30,000 single / Rs 1L annual | 1% | 20% |
| 194C | Contractor - company/firm | Rs 30,000 single / Rs 1L annual | 2% | 20% |
| 194H | Commission / brokerage | Rs 20,000/yr | 2% | 20% |
| 194I(a) | Rent - plant / machinery | Rs 50,000/month | 2% | 20% |
| 194I(b) | Rent - land / building / furniture | Rs 50,000/month | 10% | 20% |
| 194J | Professional services | Rs 50,000/yr | 10% | 20% |
| 194J | Technical services | Rs 50,000/yr | 2% | 20% |
| 194N | Cash withdrawal (ITR filer) | Rs 1 crore | 2% on excess | N/A |
| 194N | Cash withdrawal (non-filer) | Rs 20 lakh | 2%/5% tiered | N/A |
| Section 206AB omitted by Finance Act 2025. Section 206AA (20% for no PAN) continues to apply to all sections above. | ||||
Example TDS Calculation - FD Interest
Scenario: You earn Rs 1,20,000 as FD interest from a bank in FY 2025-26. You are not a senior citizen. You have provided your PAN.
Section 194A - FD Interest Calculation
TDS is deducted on the full Rs 1,20,000 - not just on the Rs 70,000 excess above the threshold. The deducted Rs 12,000 appears in your Form 26AS and can be claimed as tax credit when filing your ITR.
Senior citizen variation: If you were 60 or above, the threshold would be Rs 1,00,000. On interest of Rs 1,20,000, TDS still applies on the full amount at 10% = Rs 12,000. Net = Rs 1,08,000. The higher threshold benefits depositors whose interest stays below Rs 1,00,000.
Without PAN: TDS would be 20% = Rs 24,000. Net amount = Rs 96,000. Always ensure your PAN is on file with the bank.
When TDS Does Not Apply - Form 15G and 15H
TDS is not deducted in two situations: when the payment is below the threshold limit, or when the deductee submits a declaration (Form 15G or 15H) before income is credited.
Below threshold
If your total FD interest from a bank is below Rs 50,000 in a financial year (or Rs 1,00,000 if you are a senior citizen), the bank will not deduct TDS. Note that this threshold applies per bank - if you have FDs with multiple banks, each bank checks against its own interest payments independently.
Form 15G
Available to resident individuals below 60 years of age whose estimated total taxable income for the year is below the basic exemption limit. You declare that no tax is due on your income. The bank is then required not to deduct TDS. Submit at the start of each financial year - a declaration lapses at year-end.
Form 15H
Same as Form 15G but for senior citizens aged 60 and above. The condition is that tax calculated on estimated total income for the year is nil - even if income exceeds the basic exemption limit.
Important: Form 15G cannot be submitted if your total interest income alone exceeds the basic exemption limit. Banks file quarterly returns of all 15G/15H declarations with the IT Department. Form 15G/15H cannot be used to avoid TDS under Section 194N (cash withdrawals).