Our TDS on Salary Calculator estimates how much income tax your employer should deduct each month under the new tax regime — enter your annual gross salary to see your tax slab breakup and monthly TDS.
TDS on Salary Calculator
New Tax Regime Slabs (FY 2025-26 / AY 2026-27)
| Income Slab | Tax Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
A standard deduction of ₹75,000 applies to salaried employees, and a full tax rebate under Section 87A means zero tax if your taxable income is ₹12,00,000 or below (i.e. gross salary up to ₹12,75,000).
What Is TDS on Salary?
TDS (Tax Deducted at Source) is the income tax your employer deducts from your salary every month and deposits with the government on your behalf, based on your estimated annual tax liability. It’s an advance collection mechanism, not a separate tax — whatever’s deducted is adjusted against your final tax liability when you file your return.
How Employers Calculate Monthly TDS
- Estimate your total annual taxable salary based on your declared investments and exemptions.
- Apply the tax slabs to find total annual tax liability.
- Add 4% health and education cess.
- Divide by 12 (or remaining months in the financial year) for the monthly deduction.
FAQs
Is TDS the same as my final income tax?
Not exactly — TDS is an estimate deducted in advance. Your actual tax liability is finalized when you file your Income Tax Return, where you may get a refund (if too much was deducted) or owe more (if too little was deducted).
Do I pay tax if my income is exactly ₹12,00,000?
No — under the new regime’s Section 87A rebate (FY 2025-26), taxable income up to ₹12,00,000 attracts zero tax.
Can I switch between old and new tax regimes?
Salaried individuals can choose either regime each financial year when filing returns, though only one default applies if you don’t declare a choice (new regime is default).
Does this calculator include deductions like 80C or HRA?
No — this calculator uses new tax regime rules, which don’t allow most exemptions/deductions like 80C or HRA. For old-regime calculations with those deductions, your taxable income would be lower.