TDS Calculator — Calculate TDS on Salary FD Rent and More — India 2026
Calculate TDS applicable on salary interest income rent payments contractor payments and professional fees. Know current TDS rates for FY 2025-26.
Tax Deducted at Source is a mechanism where the payer deducts tax before making payments to you and deposits it with the government on your behalf. TDS applies to salary payments FD interest exceeding Rs 40000 rent payments above Rs 50000 per month contractor payments above Rs 30000 and professional fees above Rs 30000. Understanding TDS rates helps you plan your cash flows better and claim refunds when excess TDS is deducted.
Why is my FD interest less than expected?
Banks deduct TDS at 10% on FD interest when it exceeds Rs 40000 per year (Rs 50000 for senior citizens). If your total income is below the taxable limit you can submit Form 15G (or Form 15H for seniors) at the beginning of the financial year to avoid TDS deduction. If TDS is already deducted you can claim a refund while filing your ITR.
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Income Tax Calculator (India FY 2025-26)
How Tax Calculation Works
Income tax is calculated on your total taxable income after deducting eligible exemptions and deductions from your gross income. The tax is applied progressively — you pay a lower rate on initial income slabs and higher rates only on income that exceeds each threshold. This means moving into a "higher tax bracket" does not mean your entire income is taxed at the higher rate. Understanding marginal vs effective tax rate is crucial: your marginal rate applies only to the last rupee earned, while your effective rate is the average across all slabs.
Tax-Saving Strategies
Under the old regime, maximize deductions: Section 80C allows up to Rs 1.5 lakh through PPF, ELSS, EPF, and life insurance. Section 80D covers health insurance premiums up to Rs 25,000 (Rs 50,000 for senior citizens). Section 80CCD(1B) offers an additional Rs 50,000 deduction for NPS contributions. Home loan interest up to Rs 2 lakh is deductible under Section 24. Under the new regime, the Rs 75,000 standard deduction and lower slab rates may save you more if your total deductions are below Rs 3.75 lakh. Calculate under both regimes before choosing.
Key Information
| Parameter | Details |
|---|---|
| TDS on Salary | As per applicable slab rate |
| TDS on FD Interest | 10% (above Rs 40000/year) |
| TDS on Rent (above Rs 50000/month) | 5% for individual landlord |
| TDS on Professional Fees | 10% (above Rs 30000) |
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Use Calculator NowFrequently Asked Questions
Why is my FD interest less than expected?
Banks deduct TDS at 10% on FD interest when it exceeds Rs 40000 per year (Rs 50000 for senior citizens). If your total income is below the taxable limit you can submit Form 15G (or Form 15H for seniors) at the beginning of the financial year to avoid TDS deduction. If TDS is already deducted you can claim a refund while filing your ITR.
How to avoid TDS on rent payments?
As a tenant if your monthly rent exceeds Rs 50000 you must deduct TDS at 5% before paying the landlord. However if the landlord provides a declaration that their total income is below the taxable limit they can request non-deduction. You must deposit the deducted TDS using Form 26QC within 30 days of the end of the month.
What happens if excess TDS is deducted?
If excess TDS is deducted you can claim a refund by filing your Income Tax Return. The excess amount will be refunded to your bank account after processing usually within 30-45 days. Check Form 26AS on the income tax portal to verify all TDS credits before filing your return.
Which tax regime should I choose — old or new?
Choose the new regime if your total deductions are below Rs 3.75 lakh. Choose the old regime if you claim HRA, 80C (Rs 1.5L), 80D, home loan interest, and NPS totaling more than Rs 3.75 lakh. Salaried employees can switch every year.
Is income up to Rs 12 lakh really tax-free?
Under the new regime for FY 2025-26, income up to Rs 12 lakh is effectively tax-free due to Section 87A rebate. After Rs 75,000 standard deduction, taxable income is Rs 11.25 lakh which qualifies for full rebate. However, income even slightly above Rs 12 lakh loses this entire benefit.
How can I save more tax legally?
Under the old regime, maximize 80C (Rs 1.5L via PPF, ELSS, EPF), 80D (Rs 25K-50K for health insurance), 80CCD(1B) (Rs 50K for NPS), HRA exemption, and home loan interest (Rs 2L under Section 24).
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Last updated: March 2026