TDS Calculator (FY 2025-26)
Estimate the monthly Tax Deducted at Source (TDS) your employer is likely to deduct from your salary for Financial Year 2025-26, under either the new tax regime or the old tax regime, based on your estimated annual tax liability and the number of months remaining in the financial year.
Fill in the form and select "Calculate" to see your results here.
What is TDS on Salary?
Tax Deducted at Source (TDS) on salary, governed by Section 192 of the Income Tax Act, requires every employer to estimate an employee's total tax liability for the financial year in advance and deduct it from their salary in roughly equal monthly instalments — rather than the employee having to pay the entire year's tax as one lump sum after the year ends. Your employer re-estimates this liability whenever your declared investments, deductions, or salary structure change, and adjusts the remaining monthly deductions accordingly. This calculator shows you the same estimate your employer is expected to make, split evenly across the months remaining in the financial year.
How to use this calculator
- Select your tax regime — New or Old.
- Enter your annual gross salary for the full financial year, before any deductions.
- Set "Months Remaining in Financial Year" to 12 if you're calculating from the start of the year (April). Reduce this if you're calculating partway through the year — for example, if you joined a new employer mid-year, or your employer is recalculating your TDS for the remaining months after you submitted investment proofs.
- If you selected the old regime, choose your age category and enter your Section 80C investments and any other eligible deductions.
- Select "Calculate TDS" to see your taxable income, estimated annual tax, and the estimated monthly TDS for the months remaining.
Formula
The annual tax portion of this formula uses the exact same slabs, rebate, surcharge and cess rules as the Income Tax Calculator — see the editorial policy for how these figures are sourced and kept current.
Example
Consider a salaried employee under the new regime with an annual gross salary of ₹18,00,000, calculating TDS from the start of the financial year (12 months remaining). After the ₹75,000 standard deduction, taxable income is ₹17,25,000. Slab tax on this amount works out to ₹1,45,000 — no rebate applies since taxable income is above the ₹12,00,000 rebate threshold. Adding the 4% health and education cess (₹5,800) brings the estimated annual tax to ₹1,50,800. Dividing this by the 12 months remaining gives an estimated monthly TDS of ₹1,50,800 ÷ 12 ≈ ₹12,566.67, which is roughly what this employee's employer would deduct from each month's salary.
Factors that affect your monthly TDS
- It's only an estimate by your employer. TDS is based on the investments and deductions you declare at the start of (or during) the year. If your actual investments differ from what you declared, you may owe additional tax or be due a refund when you file your return.
- Job changes and multiple employers. If you change jobs mid-year or have more than one employer in the same financial year, each employer calculates TDS independently based only on the salary they pay you — this calculator, like a single employer's payroll system, cannot account for income from other employers.
- Other income sources. Income from sources like bank interest, rent, or capital gains is not included in your employer's TDS calculation unless you specifically declare it, which can leave a gap between TDS deducted and your actual final tax liability.
- Regime choice. The old regime allows deductions like Section 80C and other eligible deductions but taxes income at higher slab rates; the new regime has lower slab rates but disallows most deductions.
- Surcharge smoothing. Like the Income Tax Calculator, this calculator applies a flat surcharge rate for the applicable slab and does not apply marginal-relief smoothing right at the ₹50L, ₹1Cr, ₹2Cr and ₹5Cr surcharge thresholds — this only matters for very high incomes.
Frequently Asked Questions
Your employer re-estimates your total annual tax liability every time your declared investments or deductions change, then spreads whatever is left of that liability over the months remaining in the financial year. Submitting proofs partway through the year usually lowers your estimated annual tax, which reduces the TDS deducted from your remaining monthly salaries — try changing the months remaining and deduction fields above to see the effect.
TDS is only an estimate made in advance. If the total TDS deducted over the year is more than your actual final tax liability, you can claim the difference as a refund when you file your income tax return. If it's less — for example because you didn't declare all your income or investments changed — you'll need to pay the balance as self-assessment tax before filing.
Yes. TDS deducted by your employer does not replace the requirement to file an income tax return if you're otherwise required to file one. Filing is also how you reconcile the exact TDS deducted (shown in Form 16 and Form 26AS) against your actual final tax liability and claim any refund due.
It should be a close estimate, since it uses the same published FY 2025-26 slabs, rebate, surcharge and cess rules. However, payroll systems may handle rounding, mid-year joining dates, multiple income declarations, or previous employer income slightly differently, so your actual payslip TDS may not match this estimate exactly.
If you're estimating TDS from the start of the financial year (April), leave this at 12. Reduce it only if you're calculating partway through the year — for example if you joined a new employer in August, or your employer is recalculating TDS for the remaining months after you submitted investment proofs.
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Tax calculations are estimates based on the selected financial year and the information entered. This is not the exact amount your employer will deduct — actual TDS depends on your employer's payroll process, declared investments, and other income. See our full disclaimer.