Your bank silently deducted ₹8,000 from your FD interest. Your client withheld 10% from your freelancing invoice. Your employer cuts tax from every paycheck. This is TDS — Tax Deducted at Source — and honestly, most Indians do not understand when it applies, at what rate, or how to get it back if too much was deducted.
After helping thousands of users navigate tax season, we built this no-jargon guide. It covers TDS rates for every common scenario (salary, FD, rent, freelancing, property), how to check your TDS on Form 26AS, when you need to file for a refund, and the PAN card mistake that can double your TDS rate overnight. Spoiler: Form 15G can save you from unnecessary TDS on FDs entirely.
Calculate TDS — All Income Types
Salary, FD, rent, freelance, property. See exact TDS and net amount.
TDS Rate Chart 2026 — Every Common Scenario
| Income Type | Section | TDS Rate | Threshold |
|---|---|---|---|
| Salary | 192 | As per slab | Basic exemption |
| FD Interest | 194A | 10% | ₹40,000/year (₹50,000 seniors) |
| Freelance/Professional | 194J | 10% | ₹30,000/year |
| Rent (by individual) | 194IB | 5% | ₹50,000/month |
| Rent (by company) | 194I | 10% | ₹2,40,000/year |
| Property Sale | 194IA | 1% | ₹50 lakh+ |
| Lottery/Winnings | 194B | 30% | ₹10,000 |
| Commission | 194H | 5% | ₹15,000/year |
| Insurance Payout | 194DA | 5% | ₹1 lakh |
Critical: If you do not provide PAN to the deductor, TDS is charged at 20% instead of the normal rate. Always share your PAN with employers, banks, and clients.
TDS on Salary — How Your Employer Calculates It
Your employer estimates your total annual income, applies deductions (80C, 80D, HRA), and divides the tax equally across 12 months. Here is how it works:
- Start with gross salary — CTC minus employer PF and gratuity
- Subtract exemptions — HRA, LTA, standard deduction (₹75,000)
- Subtract 80C deductions — PPF, ELSS, insurance (up to ₹1.5L)
- Apply tax slabs — New or old regime, whichever you chose
- Divide by months remaining — Monthly TDS amount
Why your March TDS might be higher: If you did not submit investment proofs by January, your employer assumes no deductions and deducts higher TDS in Jan-March to catch up. Submit proofs early to avoid this cash crunch.
TDS on Fixed Deposit Interest — What Banks Do Not Tell You
Banks deduct TDS at 10% on FD interest exceeding ₹40,000/year (₹50,000 for senior citizens) per bank.
- Multiple FDs, same bank: Interest is combined across all FDs in that bank. Total above ₹40,000 = TDS applies.
- Multiple banks: Threshold is per bank. You can have ₹40,000 interest from Bank A and ₹40,000 from Bank B with zero TDS.
- Below tax limit? Submit Form 15G (or 15H for seniors) to your bank at the start of the financial year. This tells the bank not to deduct TDS because your total income is below taxable limit.
The most common mistake: People forget to submit Form 15G and then have to file an ITR to claim TDS refund. Submit it every April — even if you submitted last year, it needs to be renewed annually.
TDS on Freelancing and Professional Income
If you freelance or consult, your clients must deduct 10% TDS (Section 194J) on payments above ₹30,000/year.
- You invoice ₹50,000: Client pays you ₹45,000 and deposits ₹5,000 as TDS with the government.
- This is NOT extra tax: TDS is an advance payment of your income tax. When you file your ITR, this TDS is adjusted against your total tax liability.
- If too much TDS was deducted: File your ITR and claim a refund. Refunds typically arrive in 2-4 months if your ITR is filed correctly.
For freelancers earning under ₹7 lakh: Your actual tax liability may be zero (under the new regime). But clients still deduct 10% TDS. You must file ITR to get this money back — it is not automatic.
How to Check Your TDS — Form 26AS and AIS
Two ways to verify that TDS deducted from you was actually deposited with the government:
Form 26AS
- Login to income tax portal (incometax.gov.in)
- Go to e-File → Income Tax Returns → View Form 26AS
- Select the financial year
- See all TDS deducted by every deductor (employer, bank, client)
Annual Information Statement (AIS)
AIS is the newer, more detailed version. It shows the same TDS info plus your financial transactions (mutual fund purchases, property registrations, high-value transactions).
Check this in June/July every year. If any TDS is missing (deductor took money but did not deposit it), raise a complaint. You cannot claim credit for TDS that does not appear in 26AS.
How to Use the Tool (Step by Step)
- 1
Select income type
Salary, FD interest, freelance, rent, property.
- 2
Enter amount
Gross income or payment amount.
- 3
Choose applicable section
Auto-selected based on income type.
- 4
See TDS amount
TDS deducted, net amount received, and refund eligibility.
Frequently Asked Questions
What is TDS and why is it deducted?+−
TDS (Tax Deducted at Source) is the government collecting tax at the point of income — before it reaches you. Your employer, bank, or client deducts tax and deposits it directly with the government. It is an advance tax payment, not an additional tax.
How much TDS is deducted on salary?+−
TDS on salary depends on your total income and the tax regime you choose. Your employer estimates annual tax, subtracts deductions (80C, HRA, etc.), and divides the tax equally across 12 months. There is no flat percentage — it varies per person.
How to avoid TDS on FD interest?+−
Submit Form 15G (or 15H if you are a senior citizen) to your bank at the start of every financial year. This declares that your total income is below the taxable limit, so the bank will not deduct TDS. You need to submit it every April — it does not auto-renew.
What happens if TDS is deducted but my income is below taxable limit?+−
File your Income Tax Return (ITR) and claim a refund. The excess TDS will be refunded to your bank account, typically within 2-4 months. You must file ITR to get it back — it does not happen automatically.
What is the TDS rate without PAN?+−
20% — double the normal rate in most cases. If you do not provide PAN to the deductor (employer, bank, client), TDS jumps to 20% regardless of the actual applicable rate. Always share your PAN.
How do I check TDS deducted on my income?+−
Login to incometax.gov.in → e-File → Income Tax Returns → View Form 26AS. This shows all TDS deducted by every deductor for the selected financial year. Also check the Annual Information Statement (AIS) for more detailed info.
Is TDS applicable on rent below ₹50,000/month?+−
For individuals/HUFs paying rent: TDS (Section 194IB) applies only if monthly rent exceeds ₹50,000. Below that, no TDS. For companies: TDS applies if annual rent exceeds ₹2,40,000 (Section 194I at 10%).
Can I claim TDS refund without filing ITR?+−
No — TDS refund requires filing an Income Tax Return. The ITR shows your actual tax liability, and the excess TDS is refunded after processing. This is why filing ITR is important even if your income is below the taxable limit — otherwise you forfeit your TDS refund.
Calculate TDS — All Income Types
Salary, FD, rent, freelance, property. See exact TDS and net amount.
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