TDS Calculator

When you pay your salary, rent, commission, or interest, a certain amount is taken out of your check for Tax Deducted at Source (TDS). The payer takes TDS out of the payment before sending it, and the recipient gets the net amount after the deduction.

Taxpayers sometimes mix up TDS with their final tax bill. TDS is a way to pay taxes in advance, and the real tax bill is figured out when you file your annual income tax return.

What is a TDS Calculator?

A TDS calculator is a tool you can use online to figure out how much TDS should be taken out of different types of payments according to the Income Tax Act.

You give these things:

• Type of recipient: Individual, HUF, sole proprietor, or other (company, firm)

• Availability of PAN: If the recipient has given PAN

• Type of Payment: Salary, rent, professional fees, interest on an FD, etc.

• Amount of payment: Total amount being paid

The calculator shows:

• TDS Deductible: Does TDS apply (Yes/No)?

• TDS Amount: The exact amount to be taken out

• Net Payment: The amount you owe after TDS is taken out

Keep in mind that TDS rates and thresholds change depending on the type of payment and the type of recipient. Most sections under Section 206AA take out TDS at a higher rate of 20% if you don't have a PAN.

How do TDS Calculators work?

The type of payment and the Income Tax section that applies will affect how TDS is calculated. The basic idea is to check the threshold limits and use the rates that are set.

TDS Sections and Rates (FY 2025-26):

Key Notes:

• Without a PAN, most sections have a 20% TDS rate (except for 194-O and 194Q, which have a 5% rate).

• People who are 60 years old or older are considered seniors.

• Threshold limits are yearly unless stated otherwise

How to calculate TDS?

Calculating TDS is simple, you take a set rate (e.g. 10%) from total amount and that's your TDS.

For example, TDS on interest from a bank FD

HDFC Bank has fixed deposits for Mr. Sharma. In the fiscal year 2025–26, he made ₹50,000 in interest.

Given:

• Total FD Interest: ₹50,000

• Recipient: Person (not a senior citizen, but a regular person)

• Section: 194A

• Limit: ₹40,000 (for bank deposits)

• 10% TDS Rate

Step 1: See if the threshold has been crossed. Interest earned (₹50,000) is greater than the threshold (₹40,000).

Yes, TDS does apply.

Step 2: Find out how much TDS you owe: TDS = Total Interest × TDS Rate TDS = ₹50,000 × 10%

TDS is ₹5,000

Step 3: Find out how much net interest you got:

Net Interest = Total Interest minus TDS Deducted

Net Interest = ₹50,000 - ₹5,000

Net Interest is ₹45,000.

In short:

Total Interest: ₹50,000

TDS Taken Away: ₹5,000

Interest Credited: ₹45,000

The bank will put ₹45,000 into Mr. Sharma's account and ₹5,000 into the government's account as TDS. When Mr. Sharma files his income tax return, he can claim this ₹5,000 TDS credit.

How to use Stockify's TDS Calculator?

1. Choose the type of recipient

Select Individual/HUF/Sole Proprietor or Other (Company/Partnership).

2. Show that PAN is available

Choose whether the recipient has given you their PAN (this changes the TDS rate).

3. Choose the type of payment

Choose a payment method: Salary (192), Professional Fees (194J), Rent (194I), FD Interest (194A), and so on.

4. Type in the amount of the payment

Enter the total amount of the payment to see if the threshold has been crossed.

5. Look at the Results

The calculator shows if TDS applies, how much TDS is due, and the net payment after the deduction.

Advantages of using Stockify's TDS Calculator

These are the advantages of using the calculator:

Compliance Assurance:

• Makes sure the right TDS deduction is made according to the rules, so you don't have to pay fines for not deducting enough or not at all.

Financial Planning:

• To better manage your budget and cash flow, know how much money you have in your hand or how much you get after TDS is taken out.

Quick Check:

• Check to see if the TDS the payer took out is correct based on the rates and thresholds that apply.

Saves time:

• It eliminates mistakes made by hand and saves time compared to looking at complicated TDS rate charts.