TDS Explained: What It Is and How to Calculate It (India)

TDS (Tax Deducted at Source) is tax the payer deducts before paying you — on salary, interest, rent, commission and professional fees — and deposits with the government on your behalf. Here's how it works.

Common TDS sections & rates

• 194A — Interest / FD: 10% (threshold ₹40,000; ₹50,000 for senior citizens)
• 194I — Rent (land/building): 10% (threshold ₹2,40,000/year)
• 194J — Professional/technical fees: 10% (2% technical; threshold ₹30,000)
• 194H — Commission/brokerage: 2% (threshold ₹20,000)
• 194C — Contractor: 1% (individual/HUF) or 2% (others)

Rates and thresholds are revised periodically — several changed in 2024.

How to calculate TDS

If the amount is above the threshold, TDS = payment × rate. For example, ₹1,00,000 of FD interest at 10% = ₹10,000 TDS, so you receive ₹90,000. Do it instantly with the free TDS Calculator — pick the section, enter the amount, and it applies the rate and threshold for you.

No PAN? Higher TDS

If you don't provide a valid PAN, TDS is usually deducted at a higher 20%. Always share your PAN to avoid over-deduction.

Getting TDS back

TDS is only an advance tax. If your total tax is lower than the TDS deducted, you claim a refund when filing your return. Check your overall tax with the Income Tax Calculator. This is general information, not tax advice.