TDS: Meaning and Purpose
TDS on salary is the income tax an employer deducts every month from an employee's pay. This calculator estimates the annual tax and the monthly TDS under the new and old regimes.
Factors That Affect the Result
- Annual gross salary
- Choice between the new and old tax regimes
- Standard deduction
- Section 80C and other old-regime deductions
- Other income and rebate eligibility
How the TDS Is Calculated
Taxable income = Gross salary + Other income − Standard deduction − Eligible deductions
Tax is applied slab by slab, then rebate, surcharge (if any) and 4% cess are added
Monthly TDS = Annual tax ÷ 12
Under the new regime, a salary of ₹15,00,000 less the ₹75,000 standard deduction gives taxable income of ₹14,25,000. Slab tax is ₹93,750, cess is ₹3,750, so total tax is ₹97,500, or ₹8,125 per month.
How to Use This Calculator
- 1Enter the values in the fields on the left. Use figures from your payroll or policy.
- 2The result updates instantly as you type. Change any input to compare scenarios.
- 3Copy the result or print it to attach to your records.
- 4Check the notes under the result for statutory limits and policy points that may apply.
Why It Matters
Employers must deduct TDS accurately each month, and employees want to know their liability before they choose a regime.
Compliance note: Rates and slabs change in the Union Budget. This tool uses the slabs coded on this page and is indicative only. Confirm the figures against the latest Income-tax rules before filing.