🇮🇳 India · TDS · FY 2025-26
TDS Calculator India 2025-26: All Rates, How to Calculate & How to Avoid TDS
Updated May 26, 2026·11 min read·India Tax
TDS is deducted before you receive salary, FD interest, rent or professional fees. Knowing the exact rates, thresholds and how to submit Form 15G/15H can save you thousands every year.
✅ Quick Answer — Key TDS Rates FY 2025-26
Salary → As per slab | FD Interest → 10% (above ₹40,000/yr) | Rent → 2% (above ₹50,000/mo) | Professional Fees → 10% | No PAN → 20% on everything. Submit Form 15G/15H to avoid TDS on FD if your income is below taxable limit.
What Is TDS — Tax Deducted at Source Explained
TDS is India's mechanism for collecting tax at the source of income — before money reaches you. Instead of waiting for you to pay tax at year end, the government collects it upfront through whoever pays you.
- Who deducts: Employer (salary), bank (FD interest), tenant (rent), company (professional fees)
- Who gets credit: You — the TDS deducted shows in Form 26AS and is credited against your tax liability when filing ITR
- What if TDS > actual tax: You get a refund when you file ITR
- What if TDS < actual tax: You pay the balance as advance tax or self-assessment tax
All TDS Rates FY 2025-26 — Complete Reference
| Payment Type | Section | Threshold | TDS Rate (PAN) | TDS Rate (No PAN) |
|---|
| Salary | 192 | Basic exemption limit | As per slab | Higher rate |
| FD / Bank Interest (General) | 194A | ₹40,000/yr | 10% | 20% |
| FD / Bank Interest (Senior) | 194A | ₹50,000/yr | 10% | 20% |
| Rent — Individual/HUF Tenant | 194-IB | ₹50,000/mo | 2% | 20% |
| Rent — Company/Firm Tenant | 194-I | ₹2.4L/yr | 10% | 20% |
| Professional Services | 194J | ₹30,000/yr | 10% | 20% |
| Technical Services | 194J | ₹30,000/yr | 2% | 20% |
| Contractor (Individual) | 194C | ₹30K single / ₹1L annual | 1% | 20% |
| Contractor (Company) | 194C | ₹30K single / ₹1L annual | 2% | 20% |
| Commission / Brokerage | 194H | ₹15,000/yr | 5% | 20% |
| Winnings (Lottery, Games) | 194B | ₹10,000 | 30% | 30% |
⚠️ No PAN = 20% TDS on everything. Always provide your PAN to every payer — bank, employer, tenant, client. Without PAN, even your FD interest gets deducted at 20% instead of 10%. A simple PAN submission saves you 10% on every payment.
TDS on Salary — How It's Calculated
Unlike other TDS categories, salary TDS has no fixed rate. Your employer calculates it like this:
1
Estimate annual gross salary — CTC minus employer PF, gratuity etc.
2
Apply deductions — Standard deduction ₹75,000 (new regime) or ₹50,000 + 80C + HRA + others (old regime)
3
Calculate annual tax — Apply slab rates on taxable income + 4% cess
4
Divide by 12 — Monthly TDS = Annual tax ÷ 12. This is deducted every month from your salary
5
Adjust at year end — If salary changed, bonus paid or deductions added, employer adjusts TDS in February-March
TDS on FD Interest — Complete Rules
| Category | Threshold | TDS Rate | How to Avoid |
|---|
| General (below 60) | ₹40,000/yr | 10% | Form 15G |
| Senior Citizen (60–80) | ₹50,000/yr | 10% | Form 15H |
| Super Senior (80+) | ₹50,000/yr | 10% | Form 15H |
| No PAN provided | Any amount | 20% | Provide PAN |
Form 15G & 15H — How to Pay Zero TDS on FD
If your total income is below the taxable limit, you can submit these forms to your bank and pay zero TDS on FD interest:
| Form | Who Submits | Condition | Submit When |
|---|
| Form 15G | Below 60 years | Total income below basic exemption + total tax liability is nil | Start of every financial year (April) |
| Form 15H | 60 years and above | Total tax liability for the year is nil | Start of every financial year (April) |
💡 Submit at every bank separately. If you have FDs at SBI, HDFC and Post Office — submit Form 15G/15H at all three. TDS threshold of ₹40,000 applies per bank, not across all banks combined.
TDS on Rent — Section 194-IB Rules
- Applies when monthly rent exceeds ₹50,000
- Rate: 2% (reduced from 5% from October 2024 onwards)
- Who deducts: Tenant — individual or HUF paying rent
- When to deduct: Once a year — last month of tenancy or March, whichever is earlier
- Filing: Form 26QC within 30 days of deduction
- Certificate: Issue Form 16C to landlord within 15 days of filing 26QC
- No TAN required for individual tenants under 194-IB
How to Claim TDS Refund
1
Check Form 26AS — Login to incometax.gov.in → View Form 26AS → Verify all TDS entries are correct
2
Collect Form 16 / 16A — Employer gives Form 16 (salary TDS). Banks/others give Form 16A (other TDS)
3
File ITR on time — Include all income and claim all TDS credits. If TDS > tax liability, excess becomes refund
4
Pre-validate bank account — On IT portal, pre-validate your bank account for faster refund credit
5
Track refund — Check status on incometax.gov.in → Refund/Demand Status. Refunds credited in 2–6 months
Penalties for Non-Deduction of TDS
| Violation | Penalty |
|---|
| TDS not deducted at all | Interest 1% per month from due date to deduction date |
| TDS deducted but not deposited | Interest 1.5% per month from deduction date to deposit date |
| Expense disallowance | 30% of payment disallowed as business expense u/s 40(a)(ia) |
| Late TDS return filing | ₹200 per day late fee under Section 234E |
| Wrong TDS return filed | Penalty ₹10,000 to ₹1,00,000 under Section 271H |
Frequently Asked Questions
What is TDS and how does it work?
TDS (Tax Deducted at Source) is tax collected by the payer before making payment. The deducted amount is deposited with the government. You get credit for TDS deducted when filing ITR. If TDS deducted exceeds your actual tax liability, you get a refund.
What is TDS rate on FD in 2025-26?
10% TDS on FD interest when annual interest exceeds ₹40,000 (₹50,000 for senior citizens) and PAN is provided. 20% if PAN is not provided. Submit Form 15G or 15H at the start of the financial year to avoid TDS if your total income is below taxable limit.
How do I calculate TDS on salary?
TDS on salary = Annual estimated tax liability ÷ 12 per month. Employer estimates total annual tax based on salary, deductions and chosen tax regime, then deducts one-twelfth each month. No fixed percentage — it depends entirely on your income level and deductions claimed.
How do I claim TDS refund?
File your ITR — if total TDS deducted exceeds actual tax liability, the excess is refunded to your pre-validated bank account within 2-6 months. Verify all TDS entries in Form 26AS match your Form 16 and 16A before filing to avoid discrepancies.
What is TDS on rent above ₹50,000 per month?
2% TDS under Section 194-IB when monthly rent exceeds ₹50,000. Tenant deducts TDS once — in the last month of tenancy or March, whichever is earlier. File Form 26QC within 30 days and issue Form 16C to landlord.
What happens if TDS is not deducted?
The payer faces: interest at 1% per month for non-deduction, 1.5% per month if deducted but not deposited, and 30% of the payment disallowed as business expense. The recipient must still pay the full tax when filing ITR. Always deduct and deposit TDS on time.
For educational purposes. TDS rules and rates subject to change. Consult a CA for specific tax advice.