TDS on Salary Calculator
Calculate monthly TDS deducted from your salary under Section 192 for FY 2025–26. New & Old regime with HRA, 80C, cess, surcharge, and full regime comparison.
Monthly TDS
Enter details above
| Gross Annual Salary | -- |
| (−) Standard Deduction | -- |
| (−) HRA Exemption | -- |
| (−) Professional Tax | -- |
| (−) Chapter VI-A Deductions | -- |
| Taxable Income | -- |
| Income Tax (slabs) | -- |
| (−) Section 87A Rebate | -- |
| Tax after Rebate | -- |
| (+) Surcharge | -- |
| (+) Cess (4%) | -- |
| Total Annual Tax | -- |
| (−) TDS Already Deducted | -- |
| Remaining TDS (X months) | -- |
| Monthly TDS | -- |
Slab-wise Tax
| Slab | Rate | Tax |
|---|
Indicative estimates for FY 2025-26 (AY 2026-27) under Income Tax Act, 1961 and Finance Act 2024/2025. Salary income only. Consult a CA or incometax.gov.in for official computation.
How it works
How TDS on Salary Is Calculated
Section 192 of the Income Tax Act, 1961 requires every employer to deduct TDS from an employee's salary at the time of payment. The employer estimates the employee's total annual income at the start of the year, computes the tax liability, and deducts an equal monthly instalment — this monthly deduction is the TDS.
New Regime — FY 2025-26 Slabs
Up to ₹4,00,000 → 0% | ₹4L–₹8L → 5% | ₹8L–₹12L → 10%
₹12L–₹16L → 15% | ₹16L–₹20L → 20% | ₹20L–₹24L → 25% | Above ₹24L → 30%
Standard deduction ₹75,000 | 87A rebate if income ≤ ₹12L
Old Regime — FY 2025-26 Slabs
Up to ₹2,50,000 → 0% | ₹2.5L–₹5L → 5% | ₹5L–₹10L → 20% | Above ₹10L → 30%
Standard deduction ₹50,000 | 87A rebate if income ≤ ₹5L | Age-based exemptions for seniors
Worked Example — ₹15 LPA (New Regime)
Gross Annual: ₹15,00,000
(−) Standard Deduction: ₹75,000 → Taxable: ₹14,25,000
Tax: ₹0 (₹4L) + ₹20,000 (₹4L–8L @5%) + ₹40,000 (₹8L–12L @10%) + ₹33,750 (₹12L–14.25L @15%)
Total Tax = ₹93,750 + 4% cess = ₹97,500
Monthly TDS = ₹97,500 / 12 = ₹8,125
HRA Exemption (Old Regime only)
HRA exemption = least of: (1) Actual HRA received, (2) Rent paid − 10% of Basic, (3) 50% of Basic (metro) or 40% (non-metro). Example: Basic ₹50k, HRA ₹25k, Rent ₹30k/mo metro city → Exempt = min(₹3L, ₹3L, ₹3L) = ₹3,00,000.
Section 87A Rebate
New Regime
Income ≤ ₹12,00,000 → Full tax rebate (zero tax payable)
Old Regime
Income ≤ ₹5,00,000 → Full tax rebate (zero tax payable)
Surcharge Slabs (Both Regimes)
| Income Range | Surcharge |
|---|---|
| ₹50L – ₹1 Cr | 10% |
| ₹1 Cr – ₹2 Cr | 15% |
| ₹2 Cr – ₹5 Cr | 25% |
| Above ₹5 Cr | 37% (Old) / 25% (New, capped) |
A 4% Health & Education Cess is added on top of income tax + surcharge. This is mandatory and is always included in your TDS deduction.
Form 16 & Reconciliation
Your employer issues Form 16 by June 15 each year. Part A shows quarterly TDS deposited; Part B shows detailed salary computation. If your actual investments differ from estimates, the final TDS may need adjustment in Q4. If excess TDS was deducted, claim a refund by filing your ITR.
Cross-check your monthly payslip TDS against this calculator to ensure your employer is computing correctly.
Use the side-by-side comparison to see which regime saves more tax for your specific income and deductions.
Estimate your actual monthly in-hand before accepting a new CTC — factor in TDS, EPF, and professional tax.
FAQ
TDS on Salary — common questions
What is TDS on salary under Section 192?
TDS on salary is the income tax your employer deducts every month from your salary and deposits with the government. Section 192 of the Income Tax Act requires this. Your employer estimates annual salary, computes tax, and divides by remaining months. The deducted TDS is credited to your PAN and reflected in Form 26AS and Form 16.
Which tax regime is better for FY 2025-26?
New Regime wins for income below ₹15L with few deductions — especially since income up to ₹12L is effectively tax-free. Old Regime benefits those with heavy deductions (80C ₹1.5L + HRA + home loan interest ₹2L + 80D). Our comparison table automatically shows the winner for your inputs.
What is the standard deduction for FY 2025-26?
₹75,000 under the New Regime and ₹50,000 under the Old Regime for FY 2025-26. This is a flat deduction from gross salary — no bills or proof required. It covers work-from-home expenses, professional development, and other employment-related costs.
How is HRA exemption calculated?
HRA exemption (Old Regime only) = least of: (1) Actual HRA received annually, (2) Annual rent paid minus 10% of annual Basic, (3) 50% of Basic for metro cities or 40% for non-metro. HRA is not available under the New Regime. To claim it, you must actually be paying rent and provide rent receipts to your employer.
What is the 87A rebate under the New Regime?
If your taxable income (after ₹75,000 standard deduction) is ₹12,00,000 or below under the New Regime, your entire income tax is waived via Section 87A rebate. This means effective zero tax for income up to ~₹12.75L gross. Under the Old Regime, the rebate threshold is ₹5,00,000.
Can I switch tax regimes every year?
Yes, salaried employees with only salary income can switch every financial year. Inform your employer at the start of the year via Form 12BB or equivalent declaration. If you have business income, the switch is restricted to once. The deadline to choose for TDS purposes is effectively April of the new FY.
How is TDS calculated if I join mid-year?
Your employer annualizes the remaining months' salary, computes full-year tax on that projected income, then divides by the remaining months. Use the "Months elapsed" field in this calculator to simulate mid-year scenarios. Also enter any TDS from your previous employer for that FY to get the correct remaining balance.
What is Form 16 and how does it relate to TDS?
Form 16 is the TDS certificate issued by your employer under Section 203. Part A (quarterly TDS deposited to government) + Part B (detailed salary computation and deductions) constitute your Form 16. You use it to file ITR, and the TDS amount gets credited against your total tax liability, reducing or eliminating any balance tax to pay.
What if employer deducts excess TDS?
Excess TDS is refunded when you file your ITR. The Income Tax Department processes refunds within a few months of filing, along with 6% per annum interest (Section 244A) if the refund exceeds 10% of tax payable. Always file ITR on time (July 31 for most salaried employees) to avoid delays in refund processing.
Is Health and Education Cess included in TDS?
Yes. The 4% Health & Education Cess is always part of the TDS deducted from salary. Your employer computes: Income Tax on slab income + Surcharge (if applicable) × 1.04 = Total Tax. This total is then divided by remaining months. The cess is reported separately in Form 16 Part B.
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