TDS Interest Calculator (India)

Calculate your net interest, TDS deduction, and total returns on deposits and interest incomes.

This calculator helps you determine the net interest you receive after TDS (Tax Deducted at Source) is deducted from your interest income. Enter your investment details to see your gross interest, TDS amount, net interest, and total returns.

Examples

Click on any example to load it into the calculator.

Fixed Deposit (1 Year, 10% TDS)

Fixed Deposit

INR 100,000 invested for 1 year at 6.5% interest, 10% TDS.

Principal: 100000 INR

Interest Rate: 6.5%

Period: 1 Years

TDS Rate: 10%

Savings Account (6 Months, 10% TDS)

Savings Account

INR 50,000 for 6 months at 4% interest, 10% TDS.

Principal: 50000 INR

Interest Rate: 4%

Period: 6 Months

TDS Rate: 10%

FD Without PAN (1 Year, 20% TDS)

FD Without PAN

INR 200,000 for 1 year at 7% interest, 20% TDS (no PAN).

Principal: 200000 INR

Interest Rate: 7%

Period: 1 Years

TDS Rate: 20%

Direct Gross Interest Entry

Direct Gross Interest Entry

Gross interest INR 10,000, TDS 10%.

Gross Interest: 10000 INR

TDS Rate: 10%

Other Titles
Understanding TDS Interest Calculator: A Comprehensive Guide
Master TDS deduction and net interest calculation for Indian investments. Learn the formulas, use cases, and best practices.

What is the TDS Interest Calculator?

  • TDS Basics
  • Why TDS is Deducted
  • Who Should Use This Calculator
The TDS Interest Calculator is a specialized tool for Indian investors, savers, and taxpayers. It helps you determine the net interest you receive after TDS (Tax Deducted at Source) is deducted from your interest income. TDS is a tax collected by banks and financial institutions on interest payments exceeding a certain threshold, as mandated by Indian tax laws.
Why is TDS Deducted on Interest?
TDS is deducted to ensure timely tax collection and to bring more transparency to the taxation of interest income. If your total interest income in a financial year exceeds INR 40,000 (INR 50,000 for senior citizens), banks are required to deduct TDS at the applicable rate before crediting the interest to your account.
Who Should Use This Calculator?
Anyone earning interest from fixed deposits, recurring deposits, savings accounts, or other interest-bearing instruments in India can use this calculator to estimate their net returns after TDS deduction.

Key Concepts:

  • TDS is usually 10% if PAN is provided, 20% if not.
  • TDS is deducted only if interest exceeds the threshold.
  • You may claim TDS refund if your total income is below taxable limit.

Step-by-Step Guide to Using the TDS Interest Calculator

  • Input Your Investment Details
  • Choose TDS Rate
  • Interpret the Results
To use the TDS Interest Calculator, enter your principal amount, interest rate, investment period, and TDS rate. The calculator will compute your gross interest, TDS amount, net interest, and total return.
1. Enter Principal and Interest Rate
Input the amount you have invested (principal) and the annual interest rate offered by your bank or financial institution.
2. Specify Period and Unit
Enter the duration of your investment and select whether it is in years or months. The calculator will adjust the interest calculation accordingly.
3. Enter TDS Rate
Input the TDS rate applicable to your interest income. Standard is 10%, but it can be 20% if PAN is not provided.
4. (Optional) Enter Gross Interest
If you already know your gross interest, enter it directly. The calculator will use this value and ignore other fields.

Practical Scenarios:

  • INR 1,00,000 FD for 1 year at 6.5% interest, 10% TDS.
  • INR 50,000 savings for 6 months at 4% interest, 10% TDS.
  • INR 2,00,000 FD for 1 year at 7% interest, 20% TDS (no PAN).
  • Gross interest INR 10,000, TDS 10%.

Real-World Applications of TDS Interest Calculator

  • Tax Planning
  • Investment Comparison
  • TDS Refund Estimation
The TDS Interest Calculator is useful for tax planning, comparing investment options, and estimating TDS refunds. It helps you understand your net returns and plan your finances better.
Tax Planning and Compliance
Use the calculator to estimate your tax liability and ensure compliance with Indian tax laws. It helps you avoid surprises at the end of the financial year.
Comparing Investment Options
Compare different investment options by calculating net returns after TDS deduction. This helps you choose the best option for your financial goals.
TDS Refund Estimation
If your total income is below the taxable limit, you can claim a refund for the TDS deducted. The calculator helps you estimate the refund amount.

Use Cases:

  • Tax planning for fixed deposits and savings accounts.
  • Comparing net returns from different banks.
  • Estimating TDS refund eligibility.

Common Misconceptions and Correct Methods

  • TDS vs Final Tax
  • TDS on Different Accounts
  • Gross vs Net Interest
Many people confuse TDS with the final tax liability. TDS is only a part of your total tax; you may have to pay more or claim a refund based on your total income.
TDS is Not the Final Tax
TDS is an advance tax. Your actual tax liability is calculated at the end of the financial year based on your total income.
TDS on Different Accounts
TDS is applicable on fixed deposits, recurring deposits, and sometimes on savings accounts if the interest exceeds the threshold.
Gross vs Net Interest
Gross interest is the total interest earned before TDS deduction. Net interest is what you actually receive after TDS is deducted.

Misconceptions Explained:

  • TDS is not the final tax; you may need to pay more or claim a refund.
  • TDS applies to FDs, RDs, and sometimes savings accounts.
  • Gross interest is before TDS; net interest is after TDS.

Mathematical Derivation and Examples

  • TDS Calculation Formula
  • Annualization of Net Interest
  • Worked Examples
The calculator uses the following formulas: Gross Interest = (Principal × Rate × Period) / 100. TDS = Gross Interest × (TDS Rate / 100). Net Interest = Gross Interest - TDS. Total Return = Principal + Net Interest. If period is in months, it is converted to years for calculation.
Annualizing Net Interest
If your investment period is less than a year, the calculator annualizes the net interest for comparison purposes.
Worked Example
Example: Principal = INR 1,00,000, Rate = 6.5%, Period = 1 year, TDS Rate = 10%. Gross Interest = 6,500. TDS = 650. Net Interest = 5,850. Total Return = 1,05,850.

Calculation Examples:

  • Principal: 1,00,000, Rate: 6.5%, Period: 1 year, TDS: 10% → Net Interest: 5,850
  • Principal: 50,000, Rate: 4%, Period: 6 months, TDS: 10% → Net Interest: 900
  • Gross Interest: 10,000, TDS: 10% → Net Interest: 9,000