Enter your annual gross salary and see the monthly TDS your employer should deduct under Section 192 — new vs old regime, FY 2025-26 slabs.
How TDS on salary works (Section 192)
Under Section 192, your employer is legally required to estimate your total income-tax liability for the full financial year at the start of the year (and re-estimate on any mid-year salary revision or investment-declaration change), then deduct it in roughly equal monthly instalments across the remaining months. This way the government collects tax as you earn, rather than waiting for a single payment when you file your return in July.
The average-rate method this calculator uses
The standard, simplified way employers (and this calculator) present monthly TDS:
- Compute your full annual tax liability on your gross salary — standard deduction, slab tax, §87A rebate/marginal relief and 4% cess, via the same
incomeTax() engine that powers our Income Tax Calculator. - Average rate = annual tax ÷ annual gross salary.
- Monthly TDS = average rate × monthly gross salary.
When your salary is flat through the year, this is mathematically the same as annual tax ÷ 12. The average-rate framing matters when your gross salary changes mid-year — a raise, a bonus month, or a new employer — because the same average rate then applies correctly to each month's (possibly different) gross pay.
Worked example: ₹18,00,000 gross salary
New regime: taxable income is ₹17,25,000 after the ₹75,000 standard deduction. Slab tax works out to ₹1,45,000 (no rebate applies above the ₹12 lakh limit, and marginal relief does not bind here); with 4% cess the annual tax is ₹1,50,800.
| New regime | Amount |
|---|
| Taxable income | 17,25,000 |
| Annual tax + cess | 1,50,800 |
| Average TDS rate | 8.38% |
| Monthly TDS | 12,567 |
| Monthly salary after TDS | 1,37,433 |
Old regime with ₹2,00,000 of declared deductions: taxable income is ₹15,50,000 after the ₹50,000 standard deduction and the ₹2,00,000 deductions. Slab tax is ₹2,77,500; with cess the annual tax is ₹2,88,600 — a monthly TDS of ₹24,050, almost double the new-regime figure at this income level. The live calculator above runs both regimes on your own numbers.
When TDS drops to zero
A ₹12,75,000 gross salary under the new regime has zero annual tax: the ₹75,000 standard deduction brings taxable income exactly to the ₹12,00,000 §87A rebate limit, and the rebate wipes out the entire slab tax. So TDS is zero every month for that salary — the calculator applies this automatically, with no special-casing needed.
Refunds, multiple employers, and what this calculator does not cover
If your employer deducted more TDS than your final tax liability — common when investment proofs arrive late, or when a job change means two employers each deduct independently — you claim the difference back as a refund when you file your ITR (see our ITR Refund Status Guide). If you change jobs mid-year, submit Form 12B to your new employer so they account for your previous employer's salary and TDS and don't under-deduct for the rest of the year.
This calculator covers salary TDS (Section 192) only. TDS on rent, professional or technical fees, and bank/FD interest are deducted under different sections (194-I, 194J, 194A) with different rates and thresholds that this calculator does not model.
Frequently Asked Questions
What is TDS on salary and why does my employer deduct it every month?
Under Section 192 of the Income Tax Act, your employer must estimate your total tax liability for the whole financial year and deduct it in roughly equal monthly instalments, instead of collecting it all at once in March. This spreads the tax burden across the year and ensures the government receives tax revenue steadily rather than in one lump sum at year-end.
How is monthly TDS on salary actually calculated?
The standard method is the average rate: your employer works out your full annual tax (after standard deduction, slab tax, §87A rebate and 4% cess), divides it by your annual gross salary to get an average tax rate, then applies that rate to each month's salary. Average rate = annual tax ÷ annual gross salary; monthly TDS = average rate × monthly gross. This calculator uses the same method.
What happens if too much TDS was deducted from my salary?
You claim the excess back as a
refund when you file your Income Tax Return (ITR) for that financial year. This commonly happens if you declared investments (80C, HRA, home-loan interest) to your employer but didn't submit proofs in time, or if you switched jobs mid-year and both employers deducted TDS independently. See our
ITR Refund Status Guide to track it.
What if I have two employers in the same financial year?
You are required to give your current employer a Form 12B disclosing salary and TDS already deducted by your previous employer. Without it, each employer applies the tax slabs independently to only the salary they paid you — which usually under-deducts TDS overall, leaving you with a tax shortfall (and possible interest under Section 234) at return-filing time.
Does choosing the new or old tax regime change my TDS?
Yes — significantly. Each regime runs through a different slab structure, standard deduction and rebate limit, so incomeTax() returns a different annual tax (and therefore a different average rate and monthly TDS) for the same gross salary. This calculator shows both regimes side by side so you can see which one lowers your monthly deduction, though the actual choice should also weigh your eligible old-regime deductions.
When is TDS on salary zero?
Whenever your taxable income (gross salary minus the standard deduction, and minus any declared old-regime deductions) falls at or below the regime's §87A rebate limit — ₹12,00,000 in the new regime, ₹5,00,000 in the old regime. For example, a ₹12,75,000 gross salary in the new regime has zero tax and zero TDS after the ₹75,000 standard deduction. This calculator applies the rebate automatically — you don't need to check it separately.
Does this calculator cover TDS on rent or professional fees too?
No — this calculator covers salary TDS under Section 192 only. TDS on rent (Section 194-I), professional or technical fees (Section 194J), and bank/FD interest (Section 194A) use entirely different rates and threshold rules, which this calculator does not model.
Estimates are for information and education only — not financial, tax or investment advice. Verify current rates and rules with official sources.