TDS Calculator

TDS (Tax Deducted at Source) is tax collected by the payer (employer, bank, tenant) before paying you. The deductor deposits this TDS with the government on your behalf. You can claim credit for TDS when filing your ITR. It appears in Form 26AS and AIS.

TDS on FD interest (Section 194A) is 10% if you've submitted PAN, and 20% without PAN. No TDS if annual interest is below ₹40,000 (₹50,000 for senior citizens). You can avoid TDS entirely by submitting Form 15G (below 60) or Form 15H (senior citizen) if your total income is below taxable limit.

Three ways: (1) Submit Form 15G/15H to your bank at start of financial year if total income is below taxable limit. (2) Split FDs across multiple banks to stay below ₹40K threshold per bank. (3) Invest in tax-saving FD (5-year lock-in) which offers 80C deduction but TDS still applies on interest.

File your Income Tax Return (ITR) and claim a refund. The excess TDS will be refunded to your bank account, usually within 1-3 months of processing. Check Form 26AS on TRACES to verify all TDS credits before filing.

If you fail to deduct TDS: interest at 1% per month from the date TDS was deductible. If deducted but not deposited: interest at 1.5% per month + penalty up to the TDS amount. Late filing of TDS return: ₹200 per day (max = TDS amount). Plus prosecution under Section 276B.