TDS Calculator
Calculate TDS on salary and FD interest for FY 2025-26 using new regime slabs and Section 194A rates.
TDS calculator computes tax deducted at source on salary and fixed deposit interest for FY 2025-26. Salary mode uses new regime slabs with ₹75,000 standard deduction and Section 87A rebate up to ₹12 lakh. FD mode applies Section 194A rules: 10% TDS above ₹40,000 interest (₹50,000 for senior citizens), or 20% without PAN. See annual tax, monthly TDS, and net FD interest instantly.
Enter your total annual CTC before any deductions
State-levied professional tax, typically ₹2,400/year
NPS employer contribution (80CCD2) or other allowed deductions
Enter your annual salary to calculate TDS
Frequently Asked Questions
- What is TDS on salary?
- TDS on salary is tax deducted at source by your employer under Section 192 of the Income Tax Act. The employer estimates annual tax liability and deducts one-twelfth each month. For FY 2025-26, the new tax regime applies by default. Standard deduction is ₹75,000. Slabs start at 5% above ₹4 lakh.
- How is TDS on salary calculated?
- Subtract ₹75,000 standard deduction, professional tax, and other deductions from gross salary to get taxable income. New regime slab rates: 5% (₹4-8L), 10% (₹8-12L), 15% (₹12-16L), 20% (₹16-20L), 25% (₹20-24L), 30% above ₹24L. Add 4% cess. Divide annual tax by 12 for monthly TDS.
- What is the Section 87A rebate for FY 2025-26?
- Under the new regime, taxpayers with net taxable income up to ₹12 lakh get a full rebate under Section 87A. The rebate covers the entire tax liability up to ₹60,000. After the rebate and 4% cess, no tax is payable if taxable income stays at or below ₹12 lakh.
- What is TDS on FD interest?
- Banks deduct TDS at 10% on annual FD interest above ₹40,000 under Section 194A. For senior citizens, the threshold is ₹50,000. Without a PAN card, the rate doubles to 20%. Submit Form 15G (or 15H for seniors) if your total income is below the taxable limit.
- What is the TDS threshold for senior citizens on FD?
- Senior citizens (60 and above) get a TDS threshold of ₹50,000 on annual FD interest, against ₹40,000 for others. No TDS applies if interest at a single bank stays below ₹50,000. The limit is per bank, not across all banks combined.
- How do I avoid TDS on FD?
- Submit Form 15G to the bank if you are below 60 and annual income is below the basic exemption limit. Senior citizens use Form 15H. Submit at the start of April, before interest is credited. If TDS is still deducted, claim a refund when filing your ITR.
- What is the standard deduction for salaried employees in FY 2025-26?
- The standard deduction under the new tax regime for FY 2025-26 is ₹75,000. All salaried employees and pensioners get this deduction automatically. No proof or declaration is needed. Under the old regime, the standard deduction remains ₹50,000.
What is TDS Calculator?
TDS calculator computes Tax Deducted at Source on two common income types: salary and fixed deposit interest. TDS is a pay-as-you-earn system where the payer deducts tax before crediting income to the recipient. For salary, the employer deducts TDS monthly. For FD interest, the bank deducts TDS annually or at the time of credit.
The tool covers Section 192 (salary TDS using FY 2025-26 new regime slabs) and Section 194A (FD interest TDS). Switch between the two modes using the tab toggle at the top.
How does it work?
Salary mode subtracts ₹75,000 standard deduction, professional tax, and other eligible deductions from gross annual salary. New regime rates apply to the result: 5% (₹4-8L), 10% (₹8-12L), 15% (₹12-16L), 20% (₹16-20L), 25% (₹20-24L), 30% above ₹24L. A 4% cess applies on tax payable. Taxable income up to ₹12 lakh qualifies for full Section 87A rebate. Annual tax divided by 12 gives monthly TDS.
FD mode checks annual interest against the applicable threshold. Most depositors have a ₹40,000 limit. Senior citizens aged 60 and above have a ₹50,000 limit. Above the threshold, TDS is 10% with PAN or 20% without PAN. Below the threshold, no TDS applies.
TDS Calculator in India
TDS rules in India are governed by the Income Tax Act, 1961. Employers must deduct salary TDS under Section 192 from the very first month if projected annual tax is above zero. The deduction should be spread evenly across 12 months. Employers who under-deduct face penalties under Section 201. Employees can adjust TDS by declaring investments and deductions to their employer at the start of the year.
For FDs, the ₹40,000 TDS threshold under Section 194A applies per bank, not across all banks. Splitting FDs across two or three banks can keep individual bank interest below the threshold and legally avoid TDS deduction. However, all FD interest must still be declared in your ITR regardless of whether TDS was deducted.
The Section 87A rebate for FY 2025-26 makes the new regime tax-free up to ₹12.75 lakh gross salary. Subtracting ₹75,000 standard deduction gives taxable income of ₹12 lakh, exactly at the rebate ceiling. Monthly TDS for such a salary is zero throughout the year.
Form 15G lets depositors below 60 declare that total income is below the taxable limit. Form 15H is the senior citizen equivalent. Submit the form to each bank at the start of April. Banks receiving the form in time will not deduct TDS for that financial year.
Tips to get the best results
- Declare all investments and deductions to your employer by April each year. Employer TDS adjusts monthly. Late declarations create a large deduction in February and March to compensate for under-deduction earlier.
- For FD TDS, check interest per bank, not total. Splitting deposits across banks each below the ₹40,000 threshold is a valid strategy for small depositors.
- Senior citizens above 75 can opt into a bank-managed tax scheme if pension and FD are at the same bank. Under that scheme, no ITR filing is needed. The bank handles TDS directly.
- If excess TDS is deducted from salary or FD, file an ITR to claim a refund. Refunds with interest at 6% per annum are processed within a few months of a valid ITR filing.
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