TDS on Salary Calculator
TaxesEstimate how much tax your employer will deduct from each pay cheque as TDS, and what lands in your bank account after it.
In short: TDS on salary is the income tax your employer deducts under Section 192 and deposits with the government on your behalf. It equals your projected annual tax liability divided by 12 — so a ₹1.2 lakh yearly tax means roughly ₹10,000 withheld each month.
Your inputs
Your inputs
- Annual salary (CTC gross)
- ₹12,00,000
- Tax regime
- New Regime
- Deductions
- ₹0
Results
Monthly TDS
₹6,283
Deducted from each pay cheque
Annual TDS
₹75,400
Total tax withheld for the year
Effective tax rate
6.28%
TDS as a % of gross salary
Net annual in-hand
₹11,24,600
Salary after TDS
Cumulative TDS across the year
How your employer's monthly deductions add up from April to March.
Month-wise TDS schedule
| Month | TDS this month | Cumulative TDS |
|---|---|---|
| Apr | ₹6,283 | ₹6,283 |
| May | ₹6,283 | ₹12,567 |
| Jun | ₹6,283 | ₹18,850 |
| Jul | ₹6,283 | ₹25,133 |
| Aug | ₹6,283 | ₹31,417 |
| Sep | ₹6,283 | ₹37,700 |
| Oct | ₹6,283 | ₹43,983 |
| Nov | ₹6,283 | ₹50,267 |
| Dec | ₹6,283 | ₹56,550 |
| Jan | ₹6,283 | ₹62,833 |
An even split; employers true up the deduction in the final quarter (Feb/Mar).
How the TDS on Salary Calculator works
Formula
- Projected annual tax
- Full-year tax on your chosen regime, incl. §87A rebate and 4% cess
- New regime
- Taxable = salary − ₹50,000 standard deduction
- Old regime
- Taxable = salary − ₹50,000 std. deduction − your declared deductions
- ÷ 12
- Spread evenly across the 12 salary months of the year
Step-by-step calculation
Worked with the default values.
- 1
Taxable income
₹12,00,000 − ₹50,000 std. deduction
= ₹11,50,000
- 2
Projected annual tax (incl. 4% cess)
Slab tax on the New regime + 4% cess
= ₹75,400
- 3
Monthly TDS
₹75,400 ÷ 12 months
= ₹6,283
- 4
Effective rate
₹75,400 ÷ ₹12,00,000
= 6.28%
How it works
- At the start of the year your employer projects your full-year taxable salary and computes the tax under the regime you declare.
- That annual tax is divided by 12 and deducted from each month's salary before it is paid to you.
- In February and March the employer trues up the deduction for any bonus, arrears or revised declarations, so the final months' TDS can differ.
Examples
₹12,00,000 salary on the New regime
After the ₹50,000 standard deduction the annual tax is modest, so roughly ₹6,000–7,000 is deducted each month.
₹20,00,000 salary on the Old regime with ₹2,00,000 deductions
Higher slabs push the annual tax well past ₹3 lakh, translating to about ₹27,000+ of TDS a month.
Understanding the TDS on Salary Calculator
What TDS on salary really is
TDS — Tax Deducted at Source — is simply your annual income tax collected in monthly instalments. Under Section 192 of the Income Tax Act, every employer must estimate the tax you will owe for the year and withhold it from each pay cheque, depositing it with the government against your PAN. You are not paying anything extra; you are pre-paying the tax you would otherwise settle in one lump sum when filing.
How the employer arrives at the number
At the start of the financial year (or when you join), your employer projects your full-year taxable salary. On the New regime they subtract the ₹50,000 standard deduction; on the Old regime they also subtract the investments and allowances you declare — 80C, 80D, HRA, home-loan interest and so on. The tax on that figure, including the §87A rebate and the 4% health and education cess, is your projected annual liability. Divide it by 12 and you have the monthly TDS this calculator shows.
Why the deduction isn't always flat
Real payrolls rarely deduct exactly one-twelfth every month. Employers true up the figure in the final quarter — typically February and March. If you promised investments you didn't make, or received a bonus, arrears or a mid-year hike, the shortfall is recovered in those last months, so year-end deductions often spike. Declaring proofs early keeps the deduction smooth.
Where to verify it
Three documents matter:
- Payslip — shows the deduction each month.
- Form 16 — the annual TDS certificate your employer issues after the year ends.
- Form 26AS / AIS — the tax department's record of what was actually deposited against your PAN.
Reconcile these when you file. If the TDS exceeds your real liability — common when you change jobs or your income drops — the surplus is refunded after your return is processed. If salary TDS falls short because you have interest, rent or capital-gains income, you top it up through advance or self-assessment tax. Used well, TDS turns a daunting annual tax bill into a painless monthly routine.
Pros
- Spreads your tax evenly across the year so you never face one large bill.
- Handled entirely by your employer — no forms or deposits to manage yourself.
- Builds a verifiable tax-payment record in Form 16 and Form 26AS.
- Automatically applies the standard deduction, §87A rebate and cess for you.
- Reduces the risk of interest and penalties for underpaid tax.
Cons
- Only covers salary income — other income can leave a tax shortfall at filing.
- Over-deduction locks up cash until you claim a refund after filing your return.
- Feb/Mar true-ups can create an unexpectedly large deduction if declarations fall short.
- A wrong regime declaration can mean paying more TDS than necessary all year.
Tips
- 1Submit your investment and rent proofs early so the employer deducts the right TDS from month one.
- 2Cross-check your payslip TDS against Form 26AS every quarter to catch deposit errors.
- 3Compare both regimes before declaring — the cheaper one directly lowers your monthly deduction.
- 4On a job switch, share prior-employer income via Form 12B to avoid a year-end shortfall.
- 5If you have side income, plan advance tax so the salary TDS alone doesn't leave you underpaid.
Frequently asked questions
Everything you need to know about the TDS on Salary Calculator.
What is TDS on salary?
How is monthly TDS calculated?
Why does my TDS change in February and March?
Where can I see the TDS deducted from my salary?
Does TDS mean I have paid all my tax?
Can I reduce the TDS on my salary?
What happens if the employer deducts too much TDS?
Which regime should I declare for TDS?
Is TDS deducted on the CTC or the gross salary?
What if I switch jobs mid-year?
Methodology & sources
How the TDS on Salary Calculator is calculated, and where the underlying rules come from.
How we calculate it
Every result is produced by a single, shared and tested financial-formula library used across the whole site — so the maths is consistent from one calculator to the next. Figures are estimates based on the inputs you enter and standard assumptions (such as regular compounding and constant rates); real-world outcomes vary with taxes, fees and changing rates. All calculations run in your browser — nothing you type is stored or sent to a server.
Sources & references
Editorial policy & disclaimer. FinCalcHub provides free educational tools and estimates — not personalised financial, tax or investment advice. Verify important decisions with a qualified professional. Read our editorial approach, disclaimer and privacy policy.
Last reviewed for accuracy on .
People also calculate
Related tools you might find useful.
Income Tax Calculator
Compare income tax under the New and Old regimes and find which saves you more.
Old vs New Tax Regime Calculator
Compare tax under the Old and New regimes for the same salary and see which one saves you more.
Take-Home Salary Calculator
Convert your CTC into monthly in-hand salary after EPF and taxes.
HRA Exemption Calculator
Work out how much of your House Rent Allowance is tax-exempt.
GST Calculator
Add or remove GST and split an amount into base price and tax.
Capital Gains Tax Calculator
Calculate tax on your equity share and mutual fund capital gains.
Explore every calculator
From investments to loans and taxes — find the right tool in seconds.
Browse calculators