TDS on Salary Calculator
Estimate your monthly tax deduction at source (TDS) on salary and check your net monthly credit for FY 2025-26.
Salary & Tax Declarations
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Calculation Methodology & Rules
The TDS on Salary Calculator helps you estimate how much tax your employer will deduct from your monthly salary under Section 192. It is calculated by estimating your annual income and dividing the computed tax by the remaining months in the financial year.
Formula & Deduction Flow
- Gross Salary: Base salary + allowances (excluding employer PF & gratuity).
- Net Taxable Income: Gross Salary - Standard Deduction (₹75k for New regime / ₹50k for Old regime) - declared deductions (Old regime only).
- Annual Tax: Calculated based on the slabs + 4% cess.
- Monthly TDS: Annual Tax / Months Remaining.
Compliance Note
Employers are required to deduct tax monthly based on the declaration form (usually filled at the beginning of the year) and verify actual proofs submitted by Jan-Feb of the financial year.
Frequently Asked Questions
Tax Deducted at Source (TDS) on salary is the tax deducted by an employer monthly under Section 192 from an employee's estimated salary income before crediting it to their bank account.
Employers estimate your total salary income for the financial year, subtract eligible deductions (like HRA, 80C, 80D), calculate the annual income tax, and divide this total by the number of months in the financial year (typically 12) to deduce the monthly TDS.
Monthly TDS can change mid-year if there are salary revisions, changes in declaration of tax-saving investments, or if you submit investment proofs late. Employers recalculate the remaining tax over the remaining months.
Yes, you can submit declarations or proofs to your employer to lower your TDS. If you pay excess TDS, you will receive a refund from the Income Tax Department after filing your annual Income Tax Return (ITR).