TDS on Salary Calculator
Estimate your monthly tax deduction (TDS) under both the old and new tax regimes for FY 2025-26, with accurate slabs, surcharges, and rebate.
Deductions for Old Regime
Old Regime
Monthly TDS
New Regime
Monthly TDS
⚡ Quick Income Presets
📊 Tax Component Breakdown
⚖️ Regime Comparison
💼 Real TDS Calculation Examples for Indians
See how TDS is calculated in different scenarios for FY 2025-26
👨💻 Example 1: IT Professional in Bangalore (Age: 28)
Income Details:
- • Gross Annual Income: ₹18,00,000
- • Age: Below 60
- • Tax Regime: Comparing both
Deductions (Old Regime):
- • 80C (EPF + ELSS): ₹1,50,000
- • HRA Exemption: ₹1,00,000
- • 80D (Health Insurance): ₹25,000
- • Standard Deduction: ₹50,000
Tax Calculation:
New Tax Regime:
Gross Income: ₹18,00,000
– Standard Deduction: ₹75,000
Taxable: ₹17,25,000
Tax Calculation:
₹0-4L: ₹0
₹4-8L: ₹20,000 (5%)
₹8-12L: ₹40,000 (10%)
₹12-16L: ₹60,000 (15%)
₹16-17.25L: ₹25,000 (20%)
Base Tax: ₹1,45,000
+ Cess (4%): ₹5,800
Annual Tax: ₹1,50,800
Monthly TDS: ₹12,567
Old Tax Regime:
Gross Income: ₹18,00,000
– Deductions: ₹3,25,000
Taxable: ₹14,75,000
Tax Calculation:
₹0-3L: ₹0
₹3-6L: ₹15,000 (5%)
₹6-9L: ₹30,000 (10%)
₹9-12L: ₹45,000 (15%)
₹12-14.75L: ₹55,000 (20%)
Base Tax: ₹1,45,000
+ Cess (4%): ₹5,800
Annual Tax: ₹1,50,800
Monthly TDS: ₹12,567
⚖️ Both regimes result in SAME tax!
With ₹3.25L deductions, both are equal. Choose based on preference.
👔 Example 2: Senior Manager in Mumbai (Age: 42)
Income Details:
- • Gross Annual Income: ₹30,00,000
- • Age: Below 60
- • Deductions (Old): ₹1.5L (80C), ₹2.5L (HRA), ₹50k (80D)
New Regime:
Taxable: ₹29,25,000
Annual Tax: ₹5,83,000
Monthly TDS: ₹48,583
Old Regime: ✅ Better
Taxable: ₹25,50,000
Annual Tax: ₹4,89,520
Monthly TDS: ₹40,793
💰 Old Regime saves ₹93,480/year!
🎓 Example 3: Fresh Graduate in Delhi (Age: 23)
Income Details:
- • Gross Annual Income: ₹6,00,000
- • Age: Below 60
- • Investments: Minimal
New Regime: ✅ Best Choice
Gross: ₹6,00,000
– Std Deduction: ₹75,000
Taxable: ₹5,25,000
Tax: ₹6,250
– Rebate 87A: ₹6,250
ZERO TAX! 🎉
Monthly TDS: ₹0
⚠️ Old regime would have ~₹10,400 tax/year
👴 Example 4: Retired Senior Citizen (Age: 68)
Income Details:
- • Pension Income: ₹8,00,000/year
- • Age: 60-80 (Senior Citizen)
- • 80D (Self + Parents): ₹50,000
- • 80C: ₹50,000
New Regime:
Taxable: ₹7,25,000
Annual Tax: ₹36,400
Monthly TDS: ₹3,033
Old Regime: ✅ Better
Taxable: ₹6,50,000
Annual Tax: ₹20,800
Monthly TDS: ₹1,733
💰 Old Regime saves ₹15,600/year
Senior citizens benefit more from old regime with higher exemptions
🔧 How TDS on Salary Works – Complete Guide
What is TDS on Salary?
TDS (Tax Deducted at Source) under Section 192 of the Income Tax Act requires employers to deduct income tax from your salary every month. This ensures:
✅ Regular Tax Collection: Tax is paid throughout the year, not in one lump sum
✅ Reduced Tax Burden: Smaller monthly deductions instead of large annual payment
✅ Compliance: Employer ensures tax is paid to government on your behalf
✅ Form 16: Annual TDS certificate helps with ITR filing
Step-by-Step TDS Calculation Process
Estimate Gross Annual Income
Employer projects your total annual salary including all components (Basic + HRA + Allowances + Bonuses)
Example: ₹18L CTC = ₹14.28L Gross (after employer EPF)
Submit Investment Declarations
At start of FY, declare planned investments (80C, 80D, HRA, etc.) for old regime
⚠️ Must submit proof by Jan-Feb or tax will be recalculated
Apply Deductions (Based on Regime)
New Regime: Only ₹75k standard deduction
Old Regime: ₹50k standard + 80C + 80D + HRA + others
Calculate Taxable Income
Taxable Income = Gross Income – All Deductions
Example: ₹18L – ₹75k = ₹17.25L taxable (new regime)
Apply Tax Slabs
Different slabs for new vs old regime
Calculator uses correct slabs for FY 2025-26
Add Surcharge (if applicable)
For high incomes: 10% (>₹50L), 15% (>₹1Cr), 25% (>₹2Cr), 37% (>₹5Cr)
Apply Rebate u/s 87A
₹60k rebate if income ≤₹12L (new) or ₹12.5k if ≤₹5L (old)
Add 4% Health & Education Cess
Mandatory 4% cess on (Tax + Surcharge)
Calculate Monthly TDS
Annual Tax ÷ 12 = Monthly TDS deducted from salary
This amount is deducted every month!
New vs Old Tax Regime (FY 2025-26)
| Slab | Old Regime Rate | New Regime Rate |
|---|---|---|
| ₹0 – 3L | 0% | 0% |
| ₹3L – 4L | 5% | 0% |
| ₹4L – 6L | 5% | 5% |
| ₹6L – 8L | 10% | 5% |
| ₹8L – 9L | 10% | 10% |
| ₹9L – 12L | 15% | 10% |
| ₹12L – 15L | 20% | 15% |
| ₹15L – 16L | 30% | 15% |
| ₹16L – 20L | 30% | 20% |
| ₹20L – 24L | 30% | 25% |
| Above ₹24L | 30% | 30% |
+ 4% Health & Education Cess on all amounts
Key Deductions Summary
| Deduction | Old Regime | New Regime | Examples |
|---|---|---|---|
| Standard Deduction | ₹50,000 | ₹75,000 | Automatic, no proof needed |
| Section 80C | Up to ₹1.5L | Not allowed | PPF, EPF, ELSS, Life Insurance |
| HRA Exemption | Variable | Not allowed | Rent receipts required |
| Section 80D | ₹25k-₹1L | Not allowed | Health insurance premiums |
| Home Loan Interest | Up to ₹2L | Not allowed | Section 24(b) |
❓ Comprehensive FAQ on TDS
What is TDS on salary and when is it deducted?
TDS (Tax Deducted at Source) under Section 192 is income tax deducted by your employer from your monthly salary. It’s calculated based on your projected annual income, declared investments, and chosen tax regime. Deduction happens every month along with other deductions like EPF and professional tax.
How do I know which tax regime is better for me?
Choose New Regime if: (1) Income < ₹12L with minimal investments, (2) No home loan, (3) Not paying rent or low HRA. Choose Old Regime if: (1) High investments in 80C (₹1.5L), (2) Paying significant rent, (3) Home loan interest, (4) High health insurance premiums. Use this calculator to see exact difference!
What is rebate under section 87A for FY 2025-26?
New Regime: Up to ₹60,000 rebate if taxable income ≤ ₹12 lakh (effectively zero tax up to ₹12.75L with ₹75k standard deduction). Old Regime: Up to ₹12,500 rebate if taxable income ≤ ₹5 lakh. This rebate can reduce your tax to zero even if you fall in taxable slabs!
When do surcharges apply on income tax?
Surcharges are additional taxes on high incomes: 10% if income > ₹50 lakh to ₹1 crore, 15% if > ₹1-2 crore, 25% if > ₹2-5 crore, 37% if > ₹5 crore. The 4% Health & Education Cess is then applied on (Base Tax + Surcharge).
Can I change my tax regime mid-year or after TDS is deducted?
Yes! You can choose your tax regime at the time of filing ITR (usually by July 31st). Your employer deducts TDS based on your declaration at start of year, but you have final say when filing returns. If more tax was deducted, you’ll get a refund. If less, you’ll pay the difference.
What happens if I don’t submit investment proofs on time?
If you declared investments for old regime but don’t submit proofs by January-February (employer’s deadline), they’ll recalculate TDS assuming you have zero deductions. This means higher TDS in remaining months. You can still claim these deductions while filing ITR and get a refund, but you’ll face cash flow issues temporarily.
Are senior citizens (60+) eligible for higher exemption limits?
Old Regime: Senior citizens (60-80) get basic exemption of ₹3 lakh (same as regular). Super senior citizens (80+) get ₹5 lakh exemption. New Regime: No age-based exemptions—same slabs for everyone. However, they can still claim higher 80D deduction (₹50k for self + ₹50k for parents = ₹1 lakh total in old regime).
What is Form 16 and when do I get it?
Form 16 is a TDS certificate issued by your employer showing: (1) Total salary paid during FY, (2) TDS deducted month-wise, (3) Tax deposited with government, (4) Employer details. You receive it by June 15th for previous financial year (Apr-Mar). It’s essential for filing your Income Tax Return (ITR).
Can I claim refund if too much TDS was deducted?
Yes! When filing ITR, if your actual tax liability (after all deductions and exemptions) is less than TDS deducted, you can claim a refund. Common scenarios: (1) Left job mid-year but employer calculated full-year tax, (2) Made additional investments after TDS calculation, (3) Had losses or exemptions not considered. Refund typically arrives in 1-3 months.
How accurate is this TDS calculator?
This calculator provides 95%+ accuracy for standard salary structures using official FY 2025-26 tax slabs, surcharges, and rebates. Minor variations may occur due to: (1) Mid-year salary changes, (2) Variable bonuses, (3) Perquisites and allowances, (4) Employer-specific TDS policies. For exact calculation, consult your HR or CA. Use this for estimation and planning.
Do I need to file ITR even if TDS is deducted?
Yes, filing ITR is mandatory if: (1) Income > ₹3 lakh (new regime) or ₹2.5 lakh (old), (2) You want to claim refund, (3) You have income from multiple sources, (4) Foreign income/assets. Even if not mandatory, it’s advisable for financial record-keeping, visa applications, loan approvals, etc.
What if I have income from multiple employers in same FY?
Declare previous employer’s income to current employer using Form 12B. They’ll consider combined income for TDS calculation. If you don’t declare, your new employer will calculate TDS assuming this is your only income, leading to lower TDS deduction. You’ll have to pay additional tax while filing ITR. Always be transparent to avoid penalties and interest.