Why is TDS deducted from salary?

The law requires the employer to deduct tax when paying salary, so government receives tax during the year rather than only at filing.

Will this match my payslip?

It is an estimate. HRA, previous employment, declarations, and rounding can change Form 16.

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TDS on Salary Calculator

Estimate monthly TDS as one-twelfth of new-regime income tax on salary. Employer Form 16 can still differ.

Last updated 2026-09-17 · FY 2026-27 / AY 2027-28

Annual salary (gross)₹

Uses FY2026-27 (AY 2027-28) new regime, salaried, age under 60. Compare old regime on the income-tax calculator if you claim HRA or 80C.

Estimated annual tax

₹97,500

Monthly TDS (÷ 12)

₹8,125

Taxable income

₹14,25,000

How it works

Annual tax from the FY slab engine (new regime default), then monthly TDS ≈ annual tax / 12.

How to use this calculator

Enter the inputs shown above (amount, rate, tenure, income, or other fields).
Read the live results — they update as you type.
Check the formula, worked example, and assumptions on this page before you decide.

Formula

Annual tax from the FY slab engine (new regime default), then monthly TDS ≈ annual tax / 12.

Worked example

₹15 lakh gross salaried, new regime, no old-regime deductions: divide the annual tax by 12 for a monthly TDS estimate.

Reading the result

Treat the output as a planning figure. Compare it with your sanction letter, payslip, or GST invoice rather than treating it as a filing or a loan offer.

See also: calculation methodology and disclaimer.

Frequently asked questions

Tax deducted at source. On salary, the employer estimates your annual tax and deducts a portion each month under section 192.

Assumptions and limits

Uses the new tax regime unless you compare on the income-tax screen.
Does not model previous TDS already deducted, perquisites, or other heads of income.
Employers may project tax on CTC components differently.

Results are educational estimates, not tax, legal, investment, or medical advice, and not a loan offer. Verify filings and payments with the official authority or a qualified professional.

Sources

Income Tax Department

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