TDS on Salary Calculator FY 2025-26
Under Section 192, your employer deducts annual income tax ÷ 12 from each month's salary. This calculator computes the monthly TDS your employer should deduct based on your CTC, regime selection, and declared deductions.
Inputs
The actual TDS your employer cuts may differ if you have variable pay, joined mid-year, or have multiple employers. Use Form 16 (issued in May/June) to reconcile.
How Sec 192 TDS works
- At the start of each financial year, you submit Form 12BB declaring your investments / rent / home-loan interest.
- The employer estimates your annual taxable income, computes the annual tax, and divides by remaining months to set the monthly TDS.
- If you change declarations mid-year, the employer recalibrates — usually causing a TDS spike or refund in the last 2-3 months.
- Form 16 (issued in May/June) reconciles all 12 months of TDS against the actual annual tax.
Why your actual TDS might differ
- Employer includes variable pay (bonus, RSU vesting) that we don't model here.
- Mid-year salary revision changes the projection.
- Employer uses a different basic-pay split than our default 50%.
- Surcharge (incomes above ₹50 L) — not modelled here.
Frequently asked questions
Why does my January-March TDS jump suddenly?▾
Most employers ask for proof of declared investments by mid-January. If you declared ₹1.5 L of 80C in April but submit only ₹50k of proof in January, the employer adds back the gap to your taxable income — and recovers the missed tax in the last 2-3 months. Always submit proofs early.
Can my employer deduct TDS at the new regime even if I want old?▾
No — at the start of the FY you submit a regime-choice declaration. Once chosen, the employer follows that regime for the year. You can still switch when filing your return (ITR) if it's beneficial.
What if I change jobs mid-year?▾
Submit Form 12B to the new employer with details of TDS already deducted by the previous employer. The new employer will deduct only the gap. If you don't, you'll be over-taxed and have to claim a refund when filing.
Does TDS apply to bonuses and stock options?▾
Yes — bonus and ESOP perquisite are taxable salary. Employers typically deduct TDS at marginal rate on bonus payouts. RSU vesting triggers a perquisite TDS on the fair-market value at vest, not at exercise.