TDS on Salary Calculator
How much tax your employer must deduct from each month's salary under Section 192 for FY 2025-26 (AY 2026-27) — both regimes, with the annual figure it is built from.
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TDS on salary is not a separate tax. It is your year's income tax, estimated by your employer in April and collected in twelve slices, so that by March there is nothing left to pay. Section 192 of the Income-tax Act makes the employer responsible for getting that estimate right.
How the monthly figure is built
- The employer projects your salary for the whole financial year — basic, allowances, expected bonus.
- It applies the regime you declared. The new regime is the default; to be taxed under the old one you tell the employer at the start of the year and give proof of deductions (Form 12BB) later.
- It computes the year's tax — slabs, the 87A rebate, surcharge if any, and 4% cess — and divides by the number of salary months left.
On a ₹15,00,000 salary under the new regime for FY 2025-26: taxable income ₹14,25,000 after the ₹75,000 standard deduction, slab tax ₹93,750, cess ₹3,750, total ₹97,500 — ₹8,125 a month.
| Annual gross salary | New regime, per month | Old regime with ₹1.5 lakh of deductions, per month |
|---|---|---|
| ₹9,00,000 | ₹0 | ₹4,550 |
| ₹12,00,000 | ₹0 | ₹9,750 |
| ₹12,75,000 | ₹0 | ₹11,700 |
| ₹13,00,000 | ₹5,525 | ₹12,350 |
| ₹15,00,000 | ₹8,125 | ₹17,550 |
| ₹20,00,000 | ₹16,033 | ₹30,550 |
| ₹30,00,000 | ₹39,650 | ₹56,550 |
Two things stand out. Up to ₹12,75,000 the new regime deducts nothing at all, because the standard deduction brings taxable income to ₹12,00,000 and the Section 87A rebate cancels the tax. And ₹25,000 more salary — ₹13,00,000 — costs ₹5,525 a month, because the rebate is gone entirely once taxable income crosses ₹12 lakh. If your salary sits near that line, the deduction that starts in a hike month is not a payroll error.
Why the deduction changes mid-year
The employer recomputes whenever the estimate changes: a hike, a bonus paid in a month, a change of regime declaration, deduction proofs that fall short of what you declared. The remaining tax is spread over the months still left, which is why the last quarter's TDS often jumps after the proof-submission window closes.
Joining mid-year works the same way. Join in October on a ₹15,00,000 annual salary, with nothing deducted so far in the year, and the whole ₹97,500 has to come out of six pay cheques — ₹16,250 a month rather than ₹8,125. Give the new employer your previous employer's Form 12B so it can count the salary and TDS already handled, or you will be over- or under-deducted and left to sort it out at filing.
What TDS on salary does not cover
- Other income. Interest, rent, capital gains are not in the employer's estimate unless you declare them; declaring them raises the monthly TDS but avoids advance-tax interest under Sections 234B and 234C.
- A second job in the same year. Each employer deducts as if it were the only one, so both may apply the basic exemption and both may compute below the true slab. Form 12B fixes this.
- The final reconciliation. Form 16, issued by 15 June, shows what was deducted. The return you file settles the difference either way.
What this calculator assumes
A salaried individual under 60 with the FY 2025-26 (AY 2026-27) slabs, no income other than salary, and PF or professional tax treated separately (they reduce take-home, not the TDS itself — the old-regime PF deduction goes in the deductions slider). The months-left and TDS-so-far inputs reproduce a mid-year recomputation.
TDS on Salary — frequently asked questions
How is TDS on salary calculated every month?
The employer estimates your salary for the full year, computes the income tax on it under the regime you declared — slabs, Section 87A rebate, surcharge and 4% cess — and divides the result by the number of salary months remaining. On ₹15,00,000 under the new regime for FY 2025-26 the year’s tax is ₹97,500, so ₹8,125 is deducted each month.
Why is no TDS deducted from my salary?
Under the new regime a salaried person pays no tax up to ₹12,75,000 of salary: the ₹75,000 standard deduction brings taxable income to ₹12,00,000, and the Section 87A rebate cancels the tax on that. There is nothing to deduct. The moment taxable income crosses ₹12 lakh the rebate disappears, so a ₹13,00,000 salary is deducted ₹5,525 a month.
Why did my TDS increase in the last quarter?
Because the employer recomputed. Common triggers: a bonus paid in that month, deduction proofs that came in lower than what you declared in April, or a hike. Whatever tax remains for the year is spread over the months still left, so a shortfall discovered in January is recovered in three pay cheques rather than twelve.
I joined in October. Why is my TDS so high?
The new employer has to collect the whole year’s tax on its own estimate in the months left. On ₹15,00,000 a year, ₹97,500 spread over six months is ₹16,250 a month instead of ₹8,125. Give it Form 12B with your previous employer’s salary and TDS so it can deduct only the true balance.
Is TDS deducted on bonus?
Yes. A bonus is salary, so it enters the year’s estimate and the tax on it is deducted — usually in the month it is paid, which is why that month’s take-home can be much lower than the bonus suggests. It is taxed at your slab, not at a flat rate.
Can I choose the old regime for TDS?
Yes, by telling your employer at the start of the year; the new regime applies by default. Under the old regime the employer deducts less only if you later furnish proof of the deductions you claimed (80C investments, rent receipts for HRA, health insurance for 80D) in Form 12BB. Proofs that fall short raise the TDS in the last months of the year.
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Results from this calculator are estimates for informational use only — not financial, medical, or professional advice. Read our full disclaimer before acting on any number you see here.