A torque detecting apparatus for measuring the amount of magnetostriction of a rotary magnetic material which transmits torque by means of a magnetic sensor, and detecting the transmitted torque on the basis of the measured amount of magnetostriction. The apparatus comprises a magnetic sensor for measuring the amount of magnetostriction of the rotary magnetic material, a demagnetization coil which is opposed to the rotary magnetic material so as to restore the rotary magnetic material magnetized by a disturbing magnetic field to the state of zero magnetization, a demagnetization circuit for applying an oscillating current to the demagnetization coil so as to generate in the rotary magnetic material a periodic damping oscillating magnetic field having the maximum value larger than the coercive force of the rotary magnetic material; and a trigger circuit for outputting a drive timing signal for the demagnetization circuit. The transmitted torque is detected without being influenced by a disturbing magnetic field.