India TDS on Salary Calculator
See how much income tax your employer will take from each month’s pay, why it changes after a bonus or a job change, and what is left to pay or get back at the end of the year.
This year so far
From your payslips this year. Blank = what this calculator would have taken.
Bonus and pay rise
Other income
FD interest, rent, freelance. Its tax is paid when you file.
Old regime: what you declared to your employer
HRA received is taken as 50% of basic in a metro, 40% elsewhere.
Month by month
| Month | Pay | TDS | After TDS |
|---|
How your TDS is worked out
Your employer estimates the year, works out the tax, takes off what is already paid and spreads the rest.
- 1
Estimate the year
salary ₹15,00,000= ₹15,00,000
- 2
Tax for the year
taxable ₹14,25,000slabs + 4% cess= ₹97,500 (new)
- 3
Take off TDS paid
paid so far ₹0= ₹97,500 left
- 4
Spread over months
₹97,500 ÷ 12= ₹8,125 a month
Read more: the formula, a worked example, bonuses, job changes and Form 16
TDS (tax deducted at source) on salary is the income tax your employer takes from your pay each month and pays to the government for you. It is not an extra tax: it is your yearly income tax, collected bit by bit. The rules are in section 192 of the Income-tax Act 1961, carried into the Income-tax Act 2025 from 1 April 2026.
The formula
yearly income = salary paid so far + this month’s salary × months left + bonus paid + previous employer’s salary + other income you declared
tax for the year = income tax on that income (your regime, slabs, rebate, surcharge, 4% cess)
TDS this month = (tax for the year − TDS already deducted this year) ÷ months left, including this one
at year end: tax on all your income − all TDS = extra to pay (or refund if negative)
The tax uses the site’s India income tax calculator rules for tax year 2026-27: in the new regime, the ₹75,000 standard deduction and employer NPS come off; in the old regime, HRA exemption, the ₹50,000 standard deduction, professional tax, home-loan interest, 80C, 80D and other deductions you declared come off first. Your employer re-does the estimate every month, so a bonus, a pay rise or new proofs change the TDS for the months left.
Worked example
A salary of ₹15,00,000 a year (₹1,25,000 a month), new regime, at the same employer all year, working out TDS from April.
Taxable income = ₹15,00,000 − ₹75,000 = ₹14,25,000. Tax = 5% of ₹4 lakh (₹20,000) + 10% of ₹4 lakh (₹40,000) + 15% of ₹2,25,000 (₹33,750) = ₹93,750, plus 4% cess of ₹3,750 = ₹97,500 for the year.
Nothing has been deducted yet, so TDS = ₹97,500 ÷ 12 = ₹8,125 a month. Pay after TDS is ₹1,25,000 − ₹8,125 = ₹1,16,875 a month (before PF and professional tax).
In the old regime with no deductions declared: ₹15,00,000 − ₹50,000 = ₹14,50,000 taxable; tax = ₹12,500 + ₹1,00,000 + 30% of ₹4,50,000 (₹1,35,000) = ₹2,47,500, plus cess ₹9,900 = ₹2,57,400, or ₹21,450 a month.
A bonus in the middle of the year
Same salary, with a ₹3,00,000 bonus in October. April to September: ₹8,125 a month, ₹48,750 in all. In October the year’s income becomes ₹18,00,000; taxable ₹17,25,000; tax ₹1,45,000 + cess ₹5,800 = ₹1,50,800.
- Spread from the bonus month: (₹1,50,800 − ₹48,750) ÷ 6 = ₹17,008 a month from October.
- All from the bonus month: October = ₹8,125 + (₹1,50,800 − ₹97,500) = ₹61,425, then ₹8,125 a month again.
- Known from April: ₹1,50,800 ÷ 12 = about ₹12,567 a month all year.
All three add up to the same ₹1,50,800. Only the timing changes.
Changing jobs in the middle of the year
Say you earned ₹6,00,000 at your old job from April to September, which took ₹30,000 of TDS, and you join a new one in October at ₹2,00,000 a month. Your year is ₹6,00,000 + ₹12,00,000 = ₹18,00,000, so the tax is ₹1,50,800. Your new employer should take (₹1,50,800 − ₹30,000) ÷ 6 = about ₹20,133 a month.
Tell your new employer about the old salary and TDS on Form 12B. If you don’t, each employer works out tax as if it paid your only salary, gives the ₹75,000 standard deduction (or the ₹12 lakh rebate) again, and you end up owing tax when you file.
Forms you will see
- Form 12B: your previous employer’s salary and TDS for the year, given to your new employer.
- Form 12BB: the proofs for the old regime (rent receipts and landlord PAN for HRA, 80C, 80D, home-loan interest, LTA). Without proofs, your employer can take the deduction off and raise TDS in the last months, usually from January.
- Form 16: your TDS certificate from each employer, given by 15 June after the tax year. Part A lists the TDS paid each quarter; Part B shows how your tax was worked out. Check it against your AIS / Form 26AS before you file.
- Your employer pays each month’s TDS to the government by the 7th of the next month (30 April for March).
The forms and sections were given new numbers by the Income-tax Act 2025 and the Income-tax Rules 2026; your employer may use the new names.
Tips to keep TDS right
- Choose your regime with your employer at the start of the year. If you say nothing, the new regime is used. You can still pick the other regime when you file your return (salaried people can switch each year).
- Declare other income such as FD interest to your employer if you’d rather not pay a lump of tax when you file.
- Too much TDS comes back as a refund after you file; too little means paying the rest (with interest if it’s large) before you file.
This is an estimate. Payroll software rounds and re-estimates in its own way, and some employers also project known allowances or arrears. Income tax rules as of 9 October 2026. The section numbers, form names and due dates on this page are not yet confirmed on the official pages, so please check them.
Common questions
How is TDS on salary calculated each month?
Your employer estimates your salary for the whole tax year, works out the income tax on it under your regime, takes off any TDS already deducted this year and divides the rest by the months left. On ₹15 lakh a year in the new regime, the tax is ₹97,500, so TDS is ₹8,125 a month from April.
Is there TDS on a salary of ₹12 lakh?
Not in the new regime. ₹12 lakh minus the ₹75,000 standard deduction leaves ₹11,25,000 of taxable income, which is under the ₹12 lakh rebate limit, so the tax is nil and no TDS is taken. If you also have other income that takes you over the limit, TDS starts.
Why did my TDS go up after my bonus?
A bonus raises your income for the year, so the tax for the year goes up. Most employers take the extra tax from the bonus month onwards, which makes TDS jump for the rest of the year. Some take all of it from the bonus itself. With a ₹3 lakh bonus in October on ₹15 lakh a year, TDS goes from ₹8,125 to ₹17,008 a month.
What happens to TDS when I change jobs mid-year?
Give your new employer your earlier salary and TDS for the year on Form 12B. They then add it to their estimate, so your tax is worked out on your full year’s income and the standard deduction is only given once. If you don’t, both employers may take too little and you pay the difference when you file.
What if too much TDS was deducted from my salary?
The extra comes back as a refund when you file your income tax return. Your employer can also lower TDS in the months left if they still have months to adjust. The calculator shows the refund or the extra tax you would owe at year end, based on the TDS you enter.
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