TDS on Salary Calculator
Enter your yearly gross salary. You get the TDS your employer should deduct every month in FY 2026-27, the tax worked out slab by slab, and the right monthly amount if some TDS has already been deducted.
By Hardik Vegad, founder of WealthGamma · Last updated
TDS on your salary
₹8,125/ month
Your income tax for the year is ₹97,500, spread over 12 months.
Tax for the year
₹97,500
Taxable income
₹14,25,000
Still to be deducted
₹97,500
Tax as a share of salary
6.5%
| Slab | Rate | Tax |
|---|---|---|
| Up to ₹4L | Nil | ₹0 |
| ₹4L to ₹8L | 5% | ₹20,000 |
| ₹8L to ₹12L | 10% | ₹40,000 |
| ₹12L to ₹16L | 15% | ₹33,750 |
| With rebate and 4% cess | ₹97,500 |
How is TDS on salary calculated?
Your employer works out your income tax for the full year, then deducts it in equal parts from each month's salary. TDS is not a separate tax. It is your income tax, collected in advance.
Taxable income = Gross salary − Standard deduction − Deductions (old regime)
Tax for the year = Tax by slabs − Rebate + Cess
Monthly TDS = (Tax for the year − TDS already deducted) ÷ Months left
Worked through for a gross salary of ₹15,00,000 under the new regime:
- ₹15,00,000 − ₹75,000 standard deduction = ₹14,25,000 taxable
- Tax by slabs = ₹93,750; with 4% cess = ₹97,500
- ₹97,500 ÷ 12 months = ₹8,125 a month
Under the old regime with ₹1,50,000 of deductions, the same salary has ₹17,550 a month deducted.
How much TDS is deducted on your salary?
Nothing up to a gross salary of ₹12,75,000 under the new regime. Above that it rises quickly: about ₹16,033 a month on ₹20 lakh and ₹39,650 on ₹30 lakh.
| Yearly gross salary | TDS a month, new regime | Tax a year, new regime | TDS a month, old regime |
|---|---|---|---|
| ₹8,00,000 | ₹0 | ₹0 | ₹2,817 |
| ₹10,00,000 | ₹0 | ₹0 | ₹6,283 |
| ₹12,75,000 | ₹0 | ₹0 | ₹11,700 |
| ₹15,00,000 | ₹8,125 | ₹97,500 | ₹17,550 |
| ₹20,00,000 | ₹16,033 | ₹1,92,400 | ₹30,550 |
| ₹25,00,000 | ₹26,650 | ₹3,19,800 | ₹43,550 |
| ₹30,00,000 | ₹39,650 | ₹4,75,800 | ₹56,550 |
| ₹50,00,000 | ₹91,650 | ₹10,99,800 | ₹1,08,550 |
Spread over 12 months. Old regime with ₹1,50,000 of deductions. 4% cess included.
Why does TDS change during the year?
Because it is an estimate that your employer keeps correcting. Whenever the yearly tax changes, the balance is spread over the months that are left.
- A raise or bonus. Your yearly income goes up, so the remaining months carry more tax.
- Proofs not submitted. If you declared deductions under the old regime but don't give proof, usually by January, the employer removes them.
- A change of regime. Your choice at the start of the year decides the slabs used.
- A new job. Tell the new employer what you earned and what TDS was deducted earlier, or too little gets deducted.
Example: on ₹15,00,000, if only ₹30,000 has been deducted and 6 months are left, the TDS becomes ₹11,250 a month, not ₹8,125. Use "TDS already deducted" and "Salary months left" to check your own case.
How can you reduce TDS on salary?
Only by lowering the tax itself, since TDS is just that tax paid monthly. Two things are in your hands:
- Pick the right regime. The new regime is the default and is cheaper for most people. The old vs new regime calculator shows which suits you.
- Declare and prove deductions. In the old regime, tell your employer about 80C, health insurance, HRA and home loan interest at the start of the year, and submit the proofs on time.
If too much was deducted anyway, you get it back as a refund when you file your return.
Which section covers TDS on salary now?
Section 392 of the Income Tax Act, 2025, which applies from 1 April 2026. Before that it was Section 192 of the Income Tax Act, 1961. Only the numbering changed. The tax is still worked out on your estimated salary for the year at the slab rates.
Your employer gives you Form 16 after the year ends, showing your salary and the TDS deducted. Check it against your payslips before you file.
What does this TDS calculator leave out?
It estimates TDS from your salary alone. Your employer's figure can differ because of:
- Other income you declared. Interest or rent you asked the employer to include.
- Exempt allowances. Parts of your pay that are not taxed, mostly in the old regime.
- Perquisites. Benefits such as a company car or ESOPs, which are taxed as salary.
- Surcharge relief. Marginal relief on surcharge, which matters just above ₹50 lakh.
This is an estimate, not tax advice.
Frequently asked questions
How is TDS on salary calculated?
Your employer estimates your income tax for the whole year and divides it by the number of salary months. On a gross salary of ₹15 lakh under the new regime, the tax is ₹97,500 a year, so ₹8,125 is deducted every month.
On what salary is TDS not deducted?
Under the new regime, no TDS is deducted on a gross salary of up to ₹12,75,000 a year in FY 2026-27. That is ₹12L of taxable income plus the ₹75,000 standard deduction.
Is TDS on salary deducted every month?
Yes. The yearly tax is spread across your monthly salaries. The amount can change during the year if your pay, your tax regime or your declared deductions change.
Why did my TDS go up in the last months of the year?
Usually because the employer found a shortfall: a raise or bonus arrived, or you didn't submit proof of the deductions you had declared. The remaining tax is then spread over the few months left.
Which section covers TDS on salary?
Section 392 of the Income Tax Act, 2025, from 1 April 2026. Until then it was Section 192 of the Income Tax Act, 1961. The way the tax is worked out did not change.
How can I reduce the TDS on my salary?
Tell your employer which tax regime you want at the start of the year. If you choose the old regime, declare your deductions (80C, health insurance, HRA, home loan interest) and submit the proofs on time.
What if too much TDS was deducted?
You get it back as a refund when you file your income tax return. The TDS your employer deducted is shown in Form 16 and in your Form 26AS.