Quarterly payroll review
Check whether employer deduction pace matches your annual expected tax.
TDS Calculator
Estimate tax deducted at source on salary.
GratuityPPFEPF / PFEMISIPFDNPSIncome TaxHRAAgeGSTPercentageBMITake-Home SalaryStamp DutySIP Step-UpCompound InterestLumpsumLoan EligibilityTDSRDSection 80C PlannerSalary HikeDiscount
How to use this calculator
- 1
Enter annual salary details
Input expected annual salary and select tax regime for the current payroll year.
- 2
Estimate annual tax
Review taxable income and projected annual tax liability with standard deduction and rebate assumptions.
- 3
Plan monthly deductions
Translate annual tax into monthly TDS and adjust payroll declarations before deadlines.
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TDS estimate
Annual tax estimate₹ 71,500
Effective rate6.36%
Quick answer
Salary TDS is advance monthly tax deduction. A correct estimate helps avoid both year-end deduction shock and excess refund wait.
TDS on salary is tax withheld by the employer during the year. Estimate monthly TDS from annual salary, regime choice, standard deduction, and expected tax so you can avoid surprises in payslip and Form 16.
What is this calculator?
A salary TDS calculator estimates annual tax liability and spreads it across remaining payroll months. Employers may adjust deductions after declarations, proof submission, arrears, bonus, or regime changes.
Formula
Annual estimated tax = slab tax on taxable income + cess - rebate if eligible. Monthly TDS = annual estimated tax / payroll months, adjusted by employer for tax already deducted.
Example
Example 1: Annual salary ₹12 lakh under new regime after standard deduction may have much lower tax than an ₹18 lakh salary. The monthly TDS difference can materially change cash flow.
Another example
Example 2: If you submit old-regime proofs such as 80C, HRA, and health insurance late, employer may deduct higher TDS early and adjust later. Estimating TDS beforehand helps you plan declarations on time.
Scenario snapshots
Bonus month planning
Estimate TDS spike before variable payout month to avoid cash flow surprise.
Decision guide
Choose this when
- ✓You want monthly tax deduction estimate from annual salary.
- ✓You are deciding old vs new regime for payroll declaration.
- ✓You need to verify if current employer TDS looks too high or too low.
Pick another route when
- •You need final tax computation with all capital gains/business income heads.
- •You are filing ITR and require legally final numbers (use Form 16/AIS/ITR utility).
Common mistakes to avoid
- !Ignoring other income while planning salary TDS.
- !Submitting tax declarations late and expecting smooth monthly deductions.
- !Assuming employer TDS automatically equals final tax liability.
Assumptions and disclaimers
Updated context: FY 2026-27
- •Salary TDS is estimated from provided salary and tax-regime inputs.
- •Other income, losses, capital gains, arrears relief, and employer-specific reimbursements are not fully modeled.
- •Employer may change monthly TDS after declarations and proof checks.
- •Final tax should be verified while filing ITR.
In practice (India)
TDS planning is most useful before the employer declaration deadline and again near proof submission. Use the income tax calculator for final regime comparison, then use this TDS calculator to understand monthly cash-flow impact.
If you have other income such as interest, rent, capital gains, or freelance income, employer TDS may not cover full tax liability. Advance tax may be needed depending on your case.
Benefits
- ✓Plan monthly cash flow after tax deduction.
- ✓Check whether employer TDS looks reasonable.
- ✓Compare regime choice before payroll deadline.
- ✓Avoid year-end deduction shocks from missed declarations.
Related calculators and guides
Frequently Asked Questions
- Can I reduce salary TDS?
- You can reduce excess TDS by submitting eligible declarations and proofs to your employer on time. Do not claim deductions without supporting documents.
- Why did TDS increase in one month?
- Bonus, arrears, missed proof submission, regime update, or employer recalculation can increase monthly TDS.
- Is TDS my final tax?
- Not always. Final tax depends on all income, deductions, rebates, cess, and taxes already paid. Reconcile while filing ITR.
- What if employer deducts too much TDS?
- Excess TDS can generally be claimed as refund when filing ITR, subject to accurate return filing.
- Does this include Form 16?
- No. This is a planning estimate. Form 16 is issued by your employer after year-end and should be used for filing.
Use official tax rules and employer payroll statements for final salary TDS decisions.
How we calculate
Estimates use the formula shown above. Rules and rates are checked against official India sources where applicable (Income Tax Act, RBI/NSC circulars, GST law). Last reviewed for FY 2026-27.
- Salary TDS is estimated from provided salary and tax-regime inputs.
- Other income, losses, capital gains, arrears relief, and employer-specific reimbursements are not fully modeled.
- Employer may change monthly TDS after declarations and proof checks.
- Final tax should be verified while filing ITR.