TDS on Salary Calculator
Calculate monthly TDS your employer deducts from salary. Based on projected annual tax under old or new regime, spread over 12 months. Check if your TDS matches your actual tax liability.
TDS on Salary Calculator
Annual tax ÷ 12 = monthly TDS
TDS estimate for FY 2025-26. Actual TDS may vary based on employer's calculation and investment proofs submitted.
Employers deduct TDS based on the regime you declare at the start of FY. If you switch from old to new regime mid-year or forget to submit investment proofs, your TDS will be higher than needed. Submit Form 12BB with investment declarations by April each year to ensure accurate TDS.
How is TDS on Salary Calculated?
Your employer estimates your total taxable income for the financial year, applies eligible deductions based on your Form 12BB declaration, calculates the total annual tax, and divides it equally across 12 months to arrive at monthly TDS. This deduction appears in your payslip as "Income Tax" and is deposited to the government on your behalf.
Form 12BB — the key to lower TDS
Form 12BB is the investment declaration you submit to your employer at the start of each financial year. By declaring HRA rent, 80C investments, home loan interest, and NPS contributions, you reduce your projected taxable income — and therefore your monthly TDS. If you fail to submit Form 12BB, your employer will deduct higher TDS assuming no deductions. Investment proofs must be submitted before February to get the benefit in the same FY.
What if you change jobs mid-year?
If you change employers during the financial year, both employers deduct TDS independently on the salary they pay. This can result in lower TDS than required (your combined income may push you into a higher slab) or excess TDS. To avoid this, inform your new employer of your previous salary and TDS deducted. Your new employer will factor this in for the remaining months.
TDS vs advance tax
TDS covers salary income. If you have additional income (FD interest, capital gains, rental income, freelance work), the TDS cut by your employer may not be sufficient. You must pay advance tax on the additional income by 15 June, September, December, and March to avoid interest u/s 234B and 234C.