India TDS Calculator (Salary, FD Interest & Rent)

Tax Deducted at Source (TDS) is how India collects tax in near-real time rather than waiting for an annual return, and it works completely differently depending on what kind of payment is involved. Salary TDS under Section 192 has no fixed rate or threshold at all -- your employer estimates your full-year tax liability and withholds an even slice of it from each remaining paycheck. Fixed deposit interest under Section 194A and rent payments under Section 194-I, by contrast, use fixed percentage rates that only kick in once a payment threshold is crossed -- and both thresholds changed in the Finance Act 2025, so figures you may remember from a year or two ago (₹40,000 for bank interest, an annual ₹2,40,000 rent threshold) are now out of date.

This calculator handles all three sections in one place: pick the payment type, enter the relevant numbers, and get the exact withholding amount using the current FY2025-26 thresholds and rates -- including the newly monthly-tested rent threshold, which trips up even experienced filers who still remember it as an annual figure.

Section 192 (Salary): No flat rate exists. Your employer computes your estimated total tax liability for the whole financial year at the "average rate of income-tax" -- using whichever regime you (or, by default, the new regime) apply -- and divides it evenly across however many pay periods remain.

Section 194A (FD/Interest): No TDS applies at all until cumulative interest from a single payer in the year crosses the threshold. For FY2025-26: ₹50,000 at banks/co-operative banks/post offices, raised to ₹1,00,000 for senior citizens at those same payers, or ₹10,000 for any other payer (e.g., a company deposit). Once crossed, the ENTIRE interest amount (not just the excess over the threshold) is subject to TDS at 10% with PAN furnished, or 20% without PAN (Section 206AA).

Section 194-I (Rent): Finance Act 2025 replaced the old annual ₹2,40,000 threshold with a monthly ₹50,000 threshold, tested on rent for a month or part-month, effective 1 April 2025. Rates remain 2% for plant/machinery/equipment and 10% for land/building/furniture/fittings (20% without PAN). This section applies to a business/non-individual payer; an individual/HUF tenant paying over ₹50,000/month falls under the separate Section 194-IB instead.

TDS is a threshold system, so the numbers that matter are the ones either side of a line. Each of the three sections below is worked at a value just under its threshold and again just over it.

Section 194A: fixed deposit interest

Step 1 -- Identify the threshold for the payer and the depositor. Bank deposit, depositor under 60: ₹50,000 a year

Step 2 -- Interest of ₹50,000, exactly at the line. Threshold not exceeded, so TDS = ₹0

Step 3 -- Interest of ₹50,001, one rupee over. Threshold exceeded, and TDS applies to the whole amount rather than the excess: ₹50,001 × 10% = ₹5,000.10

That is the single most misunderstood mechanic in Indian withholding. One extra rupee of interest does not attract ten paise of tax; it attracts tax on the entire ₹50,001. The threshold is a switch, not an allowance.

Step 4 -- The same ₹50,001 for a senior citizen at the same bank. Senior threshold: ₹1,00,000. Not exceeded, so TDS = ₹0

Step 5 -- Where the senior threshold bites, at ₹1,00,001. ₹1,00,001 × 10% = ₹10,000.10

Step 6 -- The same ₹55,000 of interest with no PAN on file. Section 206AA raises the rate to 20%: ₹55,000 × 20% = ₹11,000, against ₹5,500 with PAN furnished

Failing to give the bank a PAN doubles the withholding. It is recoverable at filing, but only after sitting with the department for the better part of a year.

Section 194-I: rent paid by a business

Step 7 -- The post-Finance Act 2025 threshold is monthly, not annual. ₹50,000 a month

Step 8 -- Rent of exactly ₹50,000 a month. Not exceeded, so TDS = ₹0 a month and ₹0 for the year

Step 9 -- Rent of ₹50,001 a month. ₹50,001 × 10% = ₹5,000.10 a month Annualised: ₹60,001.20

Step 10 -- Rent of ₹60,000 a month on land or building. ₹60,000 × 10% = ₹6,000 a month, or ₹72,000 for the year

A tenancy priced at ₹50,000 and one priced at ₹50,001 differ by twelve rupees a year in rent and by sixty thousand rupees a year in withholding. That is worth knowing before a lease is signed, and it is why the 2025 switch from an annual to a monthly test changed behaviour so sharply.

Section 192: salary

Step 11 -- Salary TDS has no threshold; it uses the average-rate method. Estimated annual taxable income: ₹15,00,000, new regime

Step 12 -- Estimated annual tax liability, cess included. ₹1,09,200

Step 13 -- Spread across the remaining pay periods. ₹1,09,200 / 8 months = ₹13,650 withheld per month

Step 14 -- The rebate cliff that does behave like a threshold. ₹12,00,000 of income: annual liability ₹0 ₹12,01,000 of income: annual liability ₹1,040

Step 14 is the exception that proves the point. The Section 87A rebate does have a hard ₹12,00,000 ceiling under the new regime, but Parliament attached marginal relief to it, so the extra ₹1,000 of income costs ₹1,040 of tax rather than the full slab-computed liability a bare cliff would produce. The interest and rent thresholds in steps 3 and 9 carry no such relief.

• Section 194-IB, the separate provision for individual/HUF tenants (not covered by 194-I) paying more than ₹50,000/month rent, which carries its own distinct rate (2%) and annual-return mechanics rather than monthly TDS deposits.
• Lower/nil TDS certificates issued under Section 197, which can reduce or eliminate TDS for a specific taxpayer regardless of the standard thresholds/rates shown here.
• Form 15G/15H self-declarations, which can exempt FD interest from TDS entirely for taxpayers whose total income is below the taxable threshold, even if the interest itself exceeds the Section 194A threshold.
• Non-bank payers under Section 194A. The FD interest mode assumes the payer is a bank, co-operative bank, or post office, so it tests interest against ₹50,000, or ₹1,00,000 for a senior citizen. It does not model the ₹10,000 threshold that applies to any other payer, such as a company deposit or an NBFC. If your interest comes from one of those, TDS can be due at a level this calculator will report as nil, and the senior citizen uplift does not apply there at all.
• TDS on other common payments -- professional fees (Section 194J), contractor payments (Section 194C), commission (Section 194H), and dividends (Section 194) are not covered by this calculator.
• Actual employer withholding mechanics, such as mid-year regime changes, bonus payments, or reimbursement of previously over-withheld tax -- this tool computes the theoretical average-rate spread, not a payroll system's exact month-by-month behavior.

• Assuming the old ₹2,40,000 annual rent threshold still applies. Finance Act 2025 replaced it with a ₹50,000 monthly threshold effective FY2025-26 -- a landlord receiving ₹45,000/month for 12 months (₹5,40,000/year, which would have crossed the old annual threshold) is actually below the new monthly threshold and faces no TDS at all.
• Believing TDS applies only to interest above the threshold. Once FD interest crosses the Section 194A threshold, TDS applies to the entire interest amount, not merely the portion exceeding the threshold -- this is a step function, not a marginal one.
• Forgetting the higher senior-citizen threshold applies only at banks/co-operative banks/post offices, not at every payer -- a senior citizen earning interest from a company deposit still faces the general ₹10,000 threshold, not ₹1,00,000.
• Not furnishing PAN and being surprised by 20% TDS. Section 206AA's higher rate applies uniformly whenever PAN is missing, across both Section 194A and Section 194-I.
• Confusing salary TDS's "average rate" method with a flat percentage. Unlike interest or rent TDS, salary TDS recalculates every time your estimated annual income or regime choice changes mid-year, since it is always the full annual liability divided across remaining pay periods.

• Section 192(1), Income-tax Act, 1961 (average-rate salary TDS method). incometax.gov.in/iec/foportal

Also consulted: Section 194A, Income-tax Act, 1961, as amended by the Finance Act, 2025 (Act No. 7 of 2025), effective 1 April 2025; Section 194-I, Income-tax Act, 1961, as amended by the Finance Act, 2025, effective 1 April 2025 (monthly ₹50,000 threshold); Section 206AA, Income-tax Act, 1961 (20% TDS rate absent PAN).