TDS Calculator
Calculate monthly TDS on salary based on annual income and regime. Free, privacy-first — inputs never leave your browser.
Details
Result
Monthly TDS
₹8,125
Annual TDS
₹97,500
Effective Rate
6.50%
For estimation only. Not professional financial, tax, or legal advice. Consult a qualified advisor before making decisions. Full disclaimer.
What is TDS?
Tax Deducted at Source (TDS) is a pay-as-you-earn mechanism under section 192 of the Income-tax Act, 1961. Your employer estimates your annual tax liability at the start of the financial year and deducts 1/12th of it each month from salary, depositing the amount with the government against your PAN. The full list of TDS sections and rates is published by the CBDT at incometaxindia.gov.in. At year-end, the employer issues Form 16 and you reconcile everything in Form 26AS / AIS.
How TDS on salary is calculated
The employer projects gross salary for the year, applies the regime you have declared (new by default), subtracts standard deduction ₹75,000 (new) or ₹50,000 (old), subtracts any Chapter VI-A deductions you have declared in Form 12BB (old regime only), and computes slab tax:
Monthly TDS = (projected annual tax + 4% cess) ÷ 12
If you submit investment proofs mid-year, the employer re-projects and adjusts the remaining months' TDS — which is why proof-submission deadlines (typically January) matter.
Worked example — ₹18 lakh CTC, new regime
Gross salary ₹18,00,000, standard deduction ₹75,000 → taxable ₹17,25,000. Tax: Nil + ₹20,000 + ₹40,000 + ₹60,000 + ₹80,000 + ₹31,250 = ₹2,31,250. Add 4% cess = ₹2,40,500. Monthly TDS = ₹20,042. If you later declare an additional ₹50,000 of 80CCD(1B) NPS and switch to old regime, TDS may fall or rise depending on your other deductions — hence the need to lock in the regime choice early.
Other common TDS sections
- 194A — TDS on bank FD interest @ 10% above ₹40,000/yr (₹50,000 for seniors).
- 194IA — TDS @ 1% by buyer of immovable property over ₹50 lakh.
- 194I — TDS @ 10% on rent over ₹2.4 lakh/yr paid by business entities.
- 194H — TDS @ 2% on commission/brokerage over ₹15,000/yr.
- 194S — TDS @ 1% on VDA (crypto) transfers.
- 206AB — higher TDS rate if the deductee has not filed ITR for the prior year.
Common mistakes
- Not filing Form 12BB. Without a declaration, the employer deducts tax under the default new regime without any old-regime deductions.
- Ignoring Form 26AS mismatches. If a deductor misquotes your PAN, the credit is not visible — reconcile before filing ITR.
- Switching jobs mid-year without Form 12B. The new employer ignores the previous salary and under-deducts, triggering a tax demand at year-end.
- Claiming refund without filing. Excess TDS is refundable only by filing ITR-1/2/3 on the IT e-filing portal.
- Not quoting PAN. Under section 206AA, TDS is deducted at a flat 20% without PAN.
Related calculators and reading
See also: Income Tax Calculator, Salary & In-hand Calculator, Advance Tax Calculator, Old vs New Regime, glossary: Section 80C.
Common questions about TDS
What is TDS on salary and how is it calculated?+
TDS (Tax Deducted at Source) on salary is the monthly income tax your employer withholds based on your projected annual income. Your employer estimates annual salary + declared investments + tax regime choice, computes total annual tax, then deducts 1/12th each month. Declaring investments (80C, 80D, HRA rent) early in the year reduces monthly TDS. Form 16 summarises the year's TDS at year-end.
How can I reduce monthly TDS?+
Submit a declaration to HR with: (1) Investment proofs (ELSS, PPF, life insurance for 80C); (2) Health insurance receipts for 80D; (3) Rent receipts and landlord PAN for HRA; (4) Home loan interest certificate for 24(b); (5) NPS 80CCD(1B) receipts. Do this by January for best impact — employer recalibrates TDS for remaining months. Missing declaration means higher TDS now, refund at ITR.
What is TDS on FD interest?+
Banks deduct 10% TDS on FD interest if total annual interest exceeds ₹40,000 (₹50,000 for senior citizens) per bank. Submit Form 15G (below 60) or 15H (senior) at the start of the year if your total income is below the taxable limit — bank won't deduct TDS. NBFCs may deduct TDS on lower thresholds (₹5,000). TDS shows in Form 26AS and can be claimed in ITR.
What is TDS on rent?+
Two cases: (1) Salaried tenant paying rent above ₹50,000/month must deduct 5% TDS under Section 194IB — no TAN needed, file via Form 26QC once a year. (2) Business tenants paying rent above ₹2.4 lakh/year deduct 10% (for commercial use) or 2% (for plant/machinery) under Section 194I. Quote landlord's PAN; otherwise 20% TDS applies.
How do I claim TDS refund?+
File your ITR. If your total tax liability is lower than TDS deducted, the excess is refunded to your bank account (usually within 45 days of e-verification). Section 244A adds 0.5% monthly interest on the refund. Link PAN with Aadhaar and bank account with PAN (pre-validation on income tax portal) to avoid refund failures.
What is Form 26AS and why check it?+
Form 26AS is a consolidated statement of all TDS, TCS, advance tax, and self-assessment tax credited to your PAN, along with high-value transactions. Check it before filing ITR — if your employer/bank deducted TDS but it's not showing in 26AS (or the Annual Information Statement, AIS), the deductor failed to file/remit. Raise a grievance early; don't file ITR until reconciled.