TDS Calculator India: Calculate Tax Deducted at Source

What is TDS (Tax Deducted at Source)?

Tax Deducted at Source (TDS) is a system used in India to collect income tax before money reaches the person who earned it. An employer, bank, or client deducts a portion of a payment and sends it to the government, instead of the earner paying the full tax bill at the end of the year. This calculator estimates TDS on income for a resident individual under 60, using the old tax regime slabs, Section 87A rebate, surcharge with marginal relief, and the 4% health and education cess.

How TDS is calculated

The calculator works in five steps.

1. Taxable income = Total income − Deductions − Exemptions
2. Basic tax is worked out from the taxable income using the slab rates below.
3. Section 87A rebate is subtracted from the basic tax, if the taxpayer qualifies.
4. Surcharge is added for taxable income above ₹50 lakh, reduced where needed by marginal relief.
5. Cess (4%) is added on top of tax after rebate plus surcharge.

$\text{Total TDS} = (\text{Basic Tax} - \text{Rebate} + \text{Surcharge}) \times 1.04$

Income tax slabs (old regime, individuals under 60)

Each rate applies only to the slice of income inside that band, not to the whole income. Someone with ₹6,00,000 of taxable income pays nothing on the first ₹2,50,000, 5% on the next ₹2,50,000, and 20% only on the final ₹1,00,000.

Section 87A rebate

A resident individual whose taxable income is ₹5,00,000 or less gets a rebate equal to the smaller of the calculated tax or ₹12,500. This can reduce the tax to zero. For example, taxable income of exactly ₹5,00,000 produces a basic tax of ₹12,500, which the rebate cancels out completely, leaving no tax and no cess.

Surcharge on high incomes

Above a taxable income of ₹50 lakh, an extra surcharge applies on top of the basic tax (after the rebate). The rate depends on the income band:

A flat surcharge can create an odd result near each threshold: a taxpayer who earns slightly more than ₹50 lakh could end up with less money after tax than someone who earns exactly ₹50 lakh. Marginal relief fixes this. It caps the surcharge so that the combined tax and surcharge never grows by more than the extra income that pushed the taxpayer over the threshold.

Worked examples

Example 1: income within the rebate limit

• Total income: ₹5,00,000; deductions: ₹0; exemptions: ₹0
• Taxable income: ₹5,00,000
• Basic tax: ₹12,500
• Rebate (Section 87A): ₹12,500
• Cess: ₹0
• Total TDS: ₹0

Example 2: salaried employee with deductions

• Total income: ₹8,00,000; deductions: ₹1,50,000; exemptions: ₹50,000
• Taxable income: ₹6,00,000
• Basic tax: ₹12,500 + (₹1,00,000 × 20%) = ₹32,500
• Rebate: ₹0 (taxable income above ₹5,00,000)
• Cess: ₹32,500 × 4% = ₹1,300
• Total TDS: ₹33,800

Example 3: income above ₹50 lakh, with surcharge

• Taxable income: ₹60,00,000
• Basic tax: ₹1,12,500 + (₹50,00,000 × 30%) = ₹16,12,500
• Surcharge: 10% of ₹16,12,500 = ₹1,61,250 (below the marginal relief cap, so it applies in full)
• Cess: 4% of (₹16,12,500 + ₹1,61,250) = ₹70,950
• Total TDS: ₹18,44,700

Example 4: marginal relief just above the threshold

• Taxable income: ₹50,10,000 (₹10,000 over the ₹50 lakh surcharge threshold)
• Basic tax: ₹13,15,500
• Surcharge before relief: 10% of ₹13,15,500 = ₹1,31,550
• Marginal relief caps the surcharge at ₹7,000, so tax plus surcharge rises by only the ₹10,000 of extra income
• Cess: 4% of (₹13,15,500 + ₹7,000) = ₹52,900
• Total TDS: ₹13,75,400

How to use this calculator

Enter total income, then total deductions (such as Section 80C investments or Section 80D health insurance premiums), then total exemptions (such as house rent allowance). The calculator subtracts deductions and exemptions from total income to get taxable income, then shows basic tax, rebate, surcharge, cess, and total TDS.

Limitations

The calculator applies the old-regime slabs for a resident individual under 60. It does not model the new tax regime, the higher basic exemption limits for senior citizens (60–79) and super senior citizens (80+), or income types with their own fixed TDS rates, such as professional fees or rent. For anything beyond a standard salary or business income estimate, consult a chartered accountant or the Income Tax Department.

Frequently asked questions

What is the difference between deductions and exemptions? Deductions are amounts subtracted from total income because of investments or spending in specific categories, such as Section 80C. Exemptions are portions of income that the law treats as tax-free from the start, such as house rent allowance. Both reduce taxable income.

Why is my Total TDS zero even though I have income? If taxable income is ₹5,00,000 or less, the Section 87A rebate cancels out the basic tax, so total TDS is zero.

Does this calculator include the surcharge for high earners? Yes. For taxable income above ₹50 lakh, it adds the surcharge and applies marginal relief where the surcharge would otherwise take more than the extra income earned.

Can I get a refund if too much TDS was deducted? Yes. When a return is filed, the Income Tax Department compares total TDS credited under a taxpayer's PAN (shown in Form 26AS) against actual tax owed, and refunds any excess.

Does this calculator apply to senior citizens or the new tax regime? No. It uses the old-regime slabs for individuals under 60. Senior citizens have a higher basic exemption limit, and the new regime uses different slabs and does not allow most deductions.

References

1. Income Tax Department of India – TDS
2. Section 87A rebate
3. Surcharge and marginal relief
4. Income Tax e-filing portal — view Form 26AS and file returns