TDS on Salary Calculator (Section 192)
Estimate the monthly TDS to deduct from an employee's salary under Section 192, based on the projected annual liability, the regime chosen and what has already been deducted this year.
FY 2026-27 slabs, standard deduction and 87A rebate
₹75,000 standard deduction, no other deductions allowed.
TDS to deduct
₹12,567
per month for the next 12 months
How Section 192 works
Unlike most TDS provisions, tax on salary is not a flat percentage. The employer has to estimate the employee's total salary for the financial year, work out the tax that would be payable on it, and then deduct that amount in roughly equal monthly instalments. The obligation is to get the year right, not each month.
That is why TDS is recalculated whenever something changes. A mid-year increment raises the annual projection, so the remaining months absorb both the higher tax and the shortfall from earlier months.
The January to March problem
Employees who declare investments in April but never submit proof see those deductions withdrawn near the year end. With only two or three months left, the entire additional liability is compressed into those payslips — which is why take-home can drop sharply in the final quarter. Collecting proofs by December rather than March avoids it.
Regime choice and TDS
The new regime is the default. If an employee wants the old regime, they must tell the employer, and the employer deducts accordingly for the rest of the year. The employee can still switch when filing their return — the TDS simply becomes a refund or an additional payment at that point.
What the employer owes after deducting
Deducted tax must be deposited by the 7th of the following month, with March allowed until 30 April. Quarterly returns in Form 24Q report it, and Form 16 is issued to the employee by 15 June. Late deposit attracts interest at 1.5% per month, so the deposit deadline matters more than the return deadline.
Frequently asked questions
- How is TDS on salary calculated?
- The employer projects the employee's income for the whole financial year, computes the tax on it under the chosen regime, subtracts any TDS already deducted, and spreads the balance evenly over the remaining months. This is why your monthly TDS changes when you declare investments or get a raise mid-year.
- At what salary does TDS start?
- Under the new regime, no TDS is due until annual salary crosses roughly ₹12.75 lakh, because the Section 87A rebate cancels the liability up to that point. Under the old regime the threshold is much lower and depends on what deductions the employee declares.
- Why did my TDS suddenly increase?
- Usually one of three reasons: you did not submit investment proofs so declared deductions were withdrawn, you received a bonus or increment that raised the annual projection, or the year is nearly over and the remaining liability is being recovered across fewer months. The third is the most common in January to March.
- When must TDS be deposited?
- By the 7th of the following month, except for March where the deadline is 30 April. Quarterly returns in Form 24Q follow, and Form 16 is issued to employees by 15 June after the year ends.
- What happens if too much TDS is deducted?
- You claim it back as a refund when filing your return. The employer cannot refund excess TDS once it has been deposited with the government, so the practical fix is to submit declarations and proofs early rather than waiting.
- Does the employer deduct TDS on the employee's other income?
- Only if the employee reports it. Employees can declare other income such as interest or rental income to the employer so it is factored into the projection, which avoids a large self-assessment payment later.
Related free tools
- Income Tax Calculator
Compare your tax under the old and new regimes for FY 2026-27, including the Section 87A rebate.
- CTC to In-Hand Salary Calculator
Enter your CTC and see the exact monthly take-home after PF, professional tax and income tax. Free, no sign-up.
Deducting TDS for a whole team each month?
Projecting annual income, tracking what has already been deducted and recomputing when someone gets a raise is exactly the kind of work that goes wrong in a spreadsheet. Smart Dhandha holds it per employee and carries it straight into your quarterly filing.
- Per-employee TDS computed in the payroll run
- Deduction history retained for Form 24Q
- Compliance due dates tracked automatically
This tool is provided free for general guidance and uses the rates noted above. Statutory rates change, and individual circumstances differ — please confirm with your accountant or a qualified professional before relying on these figures for filing or payroll.