The invention discloses a torque detecting device and a detecting method used in a tractor gearbox inner cavity. The torque detecting device comprises main and auxiliary box signal disks, main and auxiliary box detecting sensor, a main box signal disk spline sleeve, a gearbox case, front and rear bearings, a flexible signal shaft, a power output shaft 7, a power output drive gear, a power output driven gear, a power output shaft bearing, a controller, and the like. The torque detecting device consisting of the above components is installed inside a tractor gearbox, performs measurement and feedback of the torque and the rotation speed through a detection system and a sensor analysis system to monitor the change of the working rotation speed and the torque of the tractor in real time, can effectively control the reasonable range of the rotation speed difference and the size range of the inertia moment during a matching and gear-shifting process, can accurately calculate the power outputof the engine and the rotation speed of the tractor to achieve real-time monitoring of the output power of the tractor, can effectively adjust the reasonable gear-shifting timing of the tractor, canimprove the gear-shifting quality of the power gear-shifting of the tractor, and can ensure the constant power output of the engine.