How TDS Works
TDS (Tax Deducted at Source) means the payer withholds tax before paying you and deposits it with the government against your PAN. TDS = Amount × section rate, applied only once the payment crosses that section's threshold. The deducted amount appears in your Form 26AS/AIS and is credited against your final tax when you file your return — excess TDS is refunded.
No PAN? Section 206AA forces deduction at the higher of the normal rate or 20% — toggle "PAN provided" above to see the impact. Estimating your final tax bill? Use our Income Tax Calculator; billing clients with tax on top? See the GST Calculator.
Common TDS Rates & Thresholds — FY 2025-26
Rates/thresholds reflect FY 2025-26 (AY 2026-27) as commonly published, without surcharge/cess where inapplicable. Salary TDS (section 192) follows your slab — use the Income Tax Calculator. Verify against the current Finance Act or a tax professional before deducting; this tool is an estimate, not tax advice.
Frequently Asked Questions
What is TDS?
Tax Deducted at Source — the payer withholds income tax before paying you and deposits it against your PAN. You claim it as credit when filing your return.
How is TDS calculated?
Amount × the section's rate, only if the payment crosses the section's threshold. ₹60,000 professional fees at 10% (194J) → ₹6,000 TDS, ₹54,000 net.
What happens if I don't provide my PAN?
Section 206AA: deduction at the higher of the normal rate or 20%. A 10% deduction doubles — and the credit is hard to claim. Always share a valid PAN.
Is TDS deducted below the threshold?
No — each section has a threshold (e.g. ₹50,000/yr bank interest, ₹50,000/month rent, ₹50,000/yr professional fees for FY 2025-26). The calculator warns you when you're below it.
How do I get back excess TDS?
File your income-tax return — TDS in your Form 26AS/AIS is credited against your tax; any excess is refunded to your bank account, usually with interest.