India TDS Calculator 2026

TDS (Tax Deducted at Source) is a mechanism where the payer deducts tax before making payment to the payee. The deducted amount is deposited with the government on the payee's behalf. TDS rates vary by payment type — 10% on FD interest (Section 194A), 10% on rent (Section 194I), 10% on professional fees (Section 194J), and slab rates on salary (Section 192). Health and Education Cess of 4% is added on top of the base TDS amount.

Under Section 206AA of the Income Tax Act, if you fail to provide your PAN to the deductor, TDS will be deducted at twice the applicable rate or 20%, whichever is higher. For example, if the normal TDS rate on FD interest is 10%, without PAN it becomes 20%. Always provide your PAN to banks and employers to ensure TDS is deducted at the correct rate.

TDS deducted appears in your Form 26AS and Annual Information Statement (AIS). If excess TDS has been deducted (more than your actual tax liability), you can claim a refund by filing your Income Tax Return (ITR). The refund is processed by the Income Tax Department and credited to your bank account. File your ITR before July 31st of the assessment year to claim the refund without penalty.

Banks deduct TDS on FD interest only if the total interest paid exceeds ₹40,000 in a financial year (₹50,000 for senior citizens). Below this threshold, no TDS is deducted. If your total income is below the taxable limit, submit Form 15G (for non-seniors) or Form 15H (for senior citizens) to your bank to prevent TDS deduction altogether.

Form 16 is issued by employers as a TDS certificate for salary income (Section 192). It shows total salary paid and TDS deducted during the financial year. Form 16A is issued for non-salary TDS — by banks for FD interest TDS, by companies for professional fee TDS, etc. Both forms are required when filing your ITR. Your employer must issue Form 16 by June 15th of the assessment year.