TDS Calculator Online
Calculate Tax Deducted at Source on salary, interest, rent, contractor payments and more - instantly, for all payment types under the Income Tax Act.
Formula to Calculate TDS
TDS = Amount × TDS Rate / 100
Net Amount = Amount − TDS
Amount = Payment amount = ₹ 6,00,000
TDS Rate = 10% (Section 192A)
Your Calculation
TDS = ₹ 6,00,000 × 10% / 100
TDS = ₹ 6,00,000 × 0.1000
TDS = ₹ 60,000
Net Amount = ₹ 6,00,000 − ₹ 60,000
Net = ₹ 5,40,000
Applied Section
192A — Premature withdrawal from EPF
Rate with PAN: 10% • Without PAN: 20%
TDS Rates — All Sections
| Section | Nature of Payment | With PAN | Without PAN |
|---|---|---|---|
| 192 | Salary | Slab | 20% |
| 192A | Premature withdrawal from EPF | 10% | 20% |
| 193 | Interest on Securities | 10% | 20% |
| 194 | Dividend | 10% | 20% |
| 194A | Interest (Banks/FD) | 10% | 20% |
| 194B | Lottery / Crossword Puzzle | 30% | 30% |
| 194C | Contractor Payment | 1% | 20% |
| 194D | Insurance Commission | 5% | 20% |
| 194H | Commission / Brokerage | 5% | 20% |
| 194I(a) | Rent - Plant & Machinery | 2% | 20% |
| 194I(b) | Rent - Land/Building/Furniture | 10% | 20% |
| 194J | Professional / Technical Fees | 10% | 20% |
| 194N | Cash Withdrawal > ₹1Cr | 2% | 20% |
| 194Q | Purchase of Goods > ₹50L | 0.1% | 5% |
| 195 | Payment to NRI | 20% | 20% |
What Is TDS - and What Does This Calculator Do?
How to Calculate TDS on Salary: Step-by-Step
Salary TDS is calculated differently from other payment types. Under Section 192, there is no fixed TDS rate - instead, the employer estimates your total annual taxable income, applies the applicable income tax slab rates, and divides the resulting tax liability across the months remaining in the financial year. Here's how the calculation works:
- Step 1 - Estimate total annual salary Add up basic pay, HRA, allowances, and any bonus or variable pay expected for the full financial year.
- Step 2 - Subtract standard deduction Under the New Tax Regime, a standard deduction of ₹75,000 is available to salaried employees. Under the Old Tax Regime, the standard deduction is ₹50,000.
- Step 3 - Subtract eligible deductions (Old Regime only) If you've opted for the Old Tax Regime, subtract deductions claimed under Section 80C (up to ₹1.5 lakh), Section 80D (health insurance), HRA exemption, and other eligible heads. Under the New Tax Regime, most deductions are not available.
- Step 4 - Apply income tax slab rates Under the New Tax Regime, the tax slabs for FY 2025-26 are: 0% for income up to ₹3 lakh, 5% for ₹3-7 lakh, 10% for ₹7-10 lakh, 15% for ₹10-12 lakh, 20% for ₹12-15 lakh, and 30% for income above ₹15 lakh. Under the Old Tax Regime, the slabs are: 0% for income up to ₹2.5 lakh, 5% for ₹2.5-5 lakh, 20% for ₹5-10 lakh, and 30% for income above ₹10 lakh.
- Step 5 - Divide by remaining months The annual tax liability is divided by the number of months remaining in the financial year. This figure is deducted from your salary each month as TDS.
Worked example: Annual salary: ₹12,00,000 | New Tax Regime | Standard deduction: ₹75,000 | Taxable income: ₹11,25,000 Tax on ₹11,25,000 (New Regime slabs) = approximately ₹1,12,500 + 4% cess = ₹1,17,000 Monthly TDS = ₹1,17,000 ÷ 12 = ₹9,750 per month.
Why PAN Availability Changes Your TDS Rate Significantly
Whether or not the recipient provides a valid PAN is one of the most practically important inputs in any TDS calculation—and the difference is significant.
When a valid PAN is provided, TDS is deducted at the section-specific rate. When PAN is not provided or is invalid, Section 206AA of the Income Tax Act mandates TDS at 20%, regardless of the standard rate for that payment type.
| Payment Type | With PAN | Without PAN |
|---|---|---|
| Salary (Section 192) | Applicable slab rate | 20% |
| FD Interest (Section 194A) | 10% | 20% |
| Contractor Payment (Section 194C) | 1–2% | 20% |
| Professional Fees (Section 194J) | 10% | 20% |
| Commission (Section 194H) | 5% | 20% |
Important: For most payment types, not providing PAN doubles or even quadruples the TDS deduction. Submit your PAN to your employer, bank, or any entity making payments to you. Otherwise, although the excess TDS can be claimed back while filing your Income Tax Return (ITR), your cash flow remains blocked until the refund is processed.
TDS Threshold Limits - When No TDS Is Deducted
TDS is not deducted on every payment - most sections have a threshold below which TDS does not apply. If a payment falls below the threshold in a financial year, no TDS is deducted even if the standard rate applies above it.
| Section | Nature of Payment | TDS Threshold |
|---|---|---|
| 192 | Salary | Below basic exemption limit (₹3L New / ₹2.5L Old) |
| 194A | Interest - Banks / FD | ₹40,000 (₹50,000 for senior citizens) |
| 194C | Contractor - Single payment | ₹30,000 per transaction |
| 194C | Contractor - Aggregate in FY | ₹1,00,000 aggregate |
| 194H | Commission / Brokerage | ₹15,000 |
| 194I | Rent | ₹2,40,000 per year |
| 194J | Professional / Technical Fees | ₹30,000 |
| 194Q | Purchase of Goods | ₹50,00,000 aggregate |
| 194N | Cash Withdrawal | ₹1,00,00,000 (₹20L if ITR not filed for 3 years) |
Understanding threshold limits helps both the payer and the recipient plan transactions correctly. A single FD interest payment below ₹40,000 from a bank will not attract TDS, but if interest across all branches of the same bank exceeds the limit during the financial year, TDS applies on the full amount.
How TDS Affects Your Net Salary - and Your Loan Eligibility
TDS on salary reduces your monthly take-home pay - and lenders calculate your personal loan eligibility based on net monthly income, not gross salary. Understanding your TDS deduction gives you a more accurate picture of your actual repayment capacity before you apply for a loan.
Here's how it connects: if your gross monthly salary is ₹1,00,000 and your monthly TDS deduction is ₹9,750, your net monthly income is approximately ₹90,250. Lenders use this net figure to calculate your Fixed Obligation to Income Ratio (FOIR) - the percentage of your income already committed to EMIs. Most lenders prefer FOIR to stay below 40–50%.
If you're planning to apply for a personal loan, use the TDS calculator above to estimate your monthly take-home, then use Personal Loan EMI Calculator to check what EMI you can comfortably service before applying. Knowing both numbers upfront helps you choose the right loan amount and tenure rather than discovering a mismatch after applying.
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