TDS on Salary Calculator
Updated November 2026 · Free · No sign-up
Calculate TDS on salary — how employers compute monthly deductions: annual tax under your chosen regime ÷ 12, using the new regime’s slabs (nil to ₹4L, 5-30% bands), the ₹75,000 standard deduction, and the Section 87A rebate making income to ₹12L tax-free (FY 2025-26 — verify current).
Quick answer: TDS = your estimated annual tax ÷ remaining months. New regime FY 2025-26: slabs 0% to ₹4L, 5% to 8L, 10% to 12L, 15% to 16L, 20% to 20L, 25% to 24L, 30% above; standard deduction ₹75,000; 87A rebate → zero tax up to ₹12L (₹12.75L salaried). New regime is the DEFAULT — opting old needs declaration.
The New-Regime Engine (FY 2025-26)
| Taxable income | Rate |
|---|---|
| ≤ ₹4,00,000 | Nil |
| 4-8L | 5% |
| 8-12L | 10% |
| 12-16L | 15% |
| 16-20L | 20% |
| 20-24L | 25% |
| 24L+ | 30% |
Plus: ₹75,000 standard deduction, the 87A rebate (up to ₹60,000) zeroing tax at ≤₹12L taxable with marginal relief just above it, 4% cess on the tax, and surcharge from ₹50L. Employers compute annual liability, divide by remaining months, and true up through the year — mid-year joiners/raises cause the Q4 TDS jumps.
Worked Examples
Example 1 — ₹12.75L salary. −75k standard = 12L taxable → tax 60,000 − 87A rebate 60,000 = ₹0 TDS — the 2025 Budget’s headline.
Example 2 — ₹15L salary. Taxable 14.25L → tax ₹93,750 + cess = ₹97,500 ≈ ₹8,125/month TDS.
Example 3 — the regime choice. Heavy 80C + HRA + home-loan claimants can still beat the new regime under the old one — run the comparison before the April declaration; the employer deducts per your declared choice.
TDS Mechanics Worth Knowing
Form 12BB declares investments/HRA for old-regime TDS; two employers in a year → give the new one your previous income details (Form 12B) or face the annualization shock; TDS appears in 26AS/AIS and reconciles at ITR filing. Employer failure to deposit TDS: your credit still stands via 26AS evidence. Rates per the FY 2025-26 schedule — Budget 2026 may revise; verify current slabs.
Frequently Asked Questions
How is monthly TDS calculated?
Estimated annual tax under your chosen regime ÷ remaining months — recomputed as pay changes; the December/January true-ups come from raises, bonuses, and missed declarations.
Is income up to ₹12 lakh really tax-free?
Under the new regime FY 2025-26, yes — the enhanced 87A rebate zeroes tax at ≤₹12L taxable (₹12.75L gross salaried with the standard deduction); marginal relief covers slightly above.
Which regime does TDS use by default?
The new regime — opting for the old one requires declaring it to your employer (and suits heavy 80C/HRA/home-loan claimants; compare first).
What if I switch jobs mid-year?
Report prior income via Form 12B to the new employer — otherwise both apply full slabs and you underpay, meeting the balance (plus interest) at filing.
What are surcharge thresholds?
10% above ₹50L, 15% above ₹1Cr (new-regime cap 25% above ₹2Cr) — plus the 4% cess on everyone’s tax.
✓ Formula verified • Last updated: November 3, 2026