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TDS on Salary Calculator India — Section 192 Monthly TDS FY 2025-26

Calculate monthly TDS deducted from your salary under Section 192. Compare old vs new tax regime to find the lower-tax option. Employer compliance: TDS deposit deadlines, Form 24Q quarterly return dates, Form 16 issuance, and late penalty calculator. Updated for FY 2025-26 per Budget 2025 slabs.

Total annual salary before any deductions
% of CTC
Typically 40-50% of CTC. Affects HRA and PF calculations.
New regime is default. Employee must opt out in writing for old regime.
PPF, ELSS, EPF, LIC, tuition fees, etc. Max \u20B91,50,000. Old regime only.
Self: \u20B925K (or \u20B950K if senior). Parents: additional \u20B925K/\u20B950K. Old regime only.
Deductible under BOTH regimes. Max 10% of basic (14% for central govt).

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How to Use This Calculator

Monthly TDS Calculator tab

Enter your annual CTC (or gross salary), basic salary percentage (typically 40%), and select your tax regime (new is default). For old regime, add HRA details (rent paid, metro city) and deductions under 80C, 80D, etc. The calculator computes your taxable salary, annual tax, and monthly TDS that your employer should deduct under Section 192.

Old vs New Regime TDS tab

Enter the same salary details and deductions. The calculator computes tax under both regimes side by side, highlights which regime gives lower TDS, and shows the exact annual and monthly saving. New regime is the default — you only need to act if the old regime is better (submit a declaration to your employer).

Employer Compliance tab

For HR and payroll teams: enter the total monthly TDS deducted across all employees and select the quarter. See TDS deposit due dates (7th of next month), Form 24Q quarterly return deadlines, Form 16 issuance date, and late deposit penalty at 1.5% per month. A full compliance calendar for FY 2025-26 is included.

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The Formula

TDS on salary is calculated by the employer under Section 192 of the Income Tax Act. The employer estimates total annual salary, applies deductions, computes tax at slab rates, and divides by 12 for monthly TDS.

Step 1: Gross Salary
Gross Salary = Annual CTC (or total salary income)

Step 2: Exemptions (Old Regime only)
HRA Exemption = min(Actual HRA, Rent − 10% of Basic, 50%/40% of Basic for metro/non-metro)

Step 3: Deductions
New Regime: Standard Deduction (₹75,000) + Employer NPS (80CCD(2), max 10% of basic)
Old Regime: Standard Deduction (₹50,000) + 80C (max ₹1.5L) + 80D + Employer NPS + others

Step 4: Taxable Salary
Taxable Salary = Gross Salary − Exemptions − Deductions

Step 5: Tax at Slab Rates
New Regime FY 2025-26: 0–4L: nil, 4–8L: 5%, 8–12L: 10%, 12–16L: 15%, 16–20L: 20%, 20–24L: 25%, >24L: 30%
Old Regime: 0–2.5L: nil, 2.5–5L: 5%, 5–10L: 20%, >10L: 30%

Step 6: Surcharge (if applicable)
>₹50L: 10%, >₹1Cr: 15%, >₹2Cr: 25%

Step 7: Cess
Cess = 4% × (Tax + Surcharge)

Step 8: Monthly TDS
Monthly TDS = (Tax + Surcharge + Cess) ÷ 12

The employer deducts TDS at the average rate of tax (not the marginal rate), ensuring equal monthly deductions throughout the year. If the employee joins mid-year or provides investment proofs later, the employer recalculates and adjusts TDS in subsequent months.

Example

Rajesh — IT professional, CTC ₹15 Lakh, new regime

Rajesh works at an IT company in Bangalore. His annual CTC is ₹15,00,000, basic salary is 40% of CTC (₹6,00,000). He has not opted out of the new regime. His employer contributes ₹50,000 to NPS.

Step 1: Salary Structure

Annual CTC₹15,00,000
Basic salary (40%)₹6,00,000

Step 2: Deductions (New Regime)

Standard deduction₹75,000
Employer NPS (80CCD(2))₹50,000
Total deductions₹1,25,000

Step 3: Tax Computation

Taxable salary₹13,75,000
0–4L (nil)₹0
4–8L (5%)₹20,000
8–12L (10%)₹40,000
12–13.75L (15%)₹26,250
Total income tax₹86,250
Cess (4%)₹3,450
Total annual tax₹89,700

Step 4: Monthly TDS

Monthly TDS (₹89,700 ÷ 12)₹7,475
Monthly take-home (approx)₹1,17,525

Rajesh’s employer deducts ₹7,475 as TDS every month. If Rajesh had opted for the old regime with full 80C (₹1.5L), 80D (₹25K), and HRA exemption (paying ₹20K/month rent in Bangalore), his old-regime tax would be approximately ₹1,22,200 — making the new regime better by ₹32,500/year.

Income Tax Slab Rates — FY 2025-26

New Tax Regime Slabs (Default) — Budget 2025
Income Slab Tax Rate
Up to ₹4,00,000Nil
₹4,00,001 – ₹8,00,0005%
₹8,00,001 – ₹12,00,00010%
₹12,00,001 – ₹16,00,00015%
₹16,00,001 – ₹20,00,00020%
₹20,00,001 – ₹24,00,00025%
Above ₹24,00,00030%

Standard deduction: ₹75,000. Section 87A rebate: No tax if taxable income ≤ ₹12 Lakh. Deductions allowed: Only employer NPS (80CCD(2)), standard deduction. No 80C, 80D, HRA exemption.

Old Tax Regime Slabs
Income Slab Tax Rate
Up to ₹2,50,000Nil
₹2,50,001 – ₹5,00,0005%
₹5,00,001 – ₹10,00,00020%
Above ₹10,00,00030%

Standard deduction: ₹50,000. Section 87A rebate: Up to ₹12,500 if taxable income ≤ ₹5 Lakh. Deductions allowed: 80C (₹1.5L), 80D (health insurance), 80CCD(2) (employer NPS), HRA exemption, 80E (education loan), 80G (donations), home loan interest (Sec 24), and more.

Surcharge Rates
Taxable Income Surcharge Rate
Up to ₹50 LakhNil
₹50L – ₹1 Crore10%
₹1 Cr – ₹2 Crore15%
Above ₹2 Crore25%

Under the new regime, the maximum surcharge is capped at 25% (no 37% bracket). Marginal relief applies to prevent surcharge from exceeding income above the threshold.

TDS Compliance Calendar — FY 2025-26
Event Due Date
TDS deposit (monthly)7th of following month
March TDS deposit30 Apr (govt) / 7 Apr (others)
Form 24Q — Q131 July 2025
Form 24Q — Q231 October 2025
Form 24Q — Q331 January 2026
Form 24Q — Q431 May 2026
Form 16 issuance15 June 2026

Late deposit interest: 1.5% per month under Section 201(1A). Late return fee: ₹200/day under Section 234E. Prosecution: Section 276B for wilful non-deposit — imprisonment 3 months to 7 years.

FAQ

Under Section 192 of the Income Tax Act, the employer estimates the employee’s total annual salary income at the beginning of the financial year (or at the time of joining). The employer then allows eligible deductions: standard deduction (₹75,000 new regime / ₹50,000 old regime), HRA exemption (old regime only, based on rent paid), Section 80C investments (old regime, up to ₹1.5L), Section 80D health insurance (old regime), and employer NPS under 80CCD(2) (both regimes). The employer computes income tax at applicable slab rates, adds 4% cess, and divides by 12 (or remaining months if mid-year joining) for monthly TDS. As the employee submits investment proofs, the employer recalculates and adjusts TDS in later months.
The Union Budget 2025 revised the new regime slabs for FY 2025-26: income up to ₹4 Lakh is tax-free, ₹4–8 Lakh at 5%, ₹8–12 Lakh at 10%, ₹12–16 Lakh at 15%, ₹16–20 Lakh at 20%, ₹20–24 Lakh at 25%, and above ₹24 Lakh at 30%. Standard deduction is ₹75,000. The Section 87A rebate makes tax nil for taxable income up to ₹12 Lakh, effectively making salaried income up to ₹12,75,000 tax-free (including standard deduction). Only employer NPS (80CCD(2)) is deductible under the new regime — no 80C, 80D, or HRA exemption.
Employers must deposit TDS deducted from salary by the 7th of the following month. For TDS deducted in March, the due date is 30 April for government deductors and 7 April for non-government deductors. TDS is deposited using Challan 281 via the TIN-NSDL or Protean e-payment portal. Late deposit attracts interest at 1.5% per month (or part of a month) under Section 201(1A), calculated from the date of deduction to the date of deposit. If TDS is deducted but not deposited, it constitutes an offence under Section 276B, punishable with rigorous imprisonment of 3 months to 7 years with fine.
The decision depends on your total deductions and exemptions. New regime (default): lower slab rates but almost no deductions allowed. Best for those with few or no tax-saving investments. Old regime: higher slab rates but allows HRA exemption, 80C (₹1.5L for PPF/ELSS/EPF/LIC), 80D (health insurance), home loan interest, and many other deductions. As a rule of thumb: if your total deductions under old regime exceed approximately ₹3.75 Lakh, the old regime may save more tax. For most salaried employees with CTC below ₹12–15 Lakh who don’t maximise deductions, the new regime is better. Use the “Old vs New Regime” tab to compare with your actual numbers.
Form 24Q is the quarterly TDS return that employers must file for tax deducted on salary payments under Section 192. It contains two parts: Part A (deductee-wise TDS details — PAN, amount paid, TDS deducted) and Annexure II (detailed salary breakup for each employee, including basic, HRA, deductions, and tax computation — filed only in Q4). Due dates: Q1 (Apr–Jun) by 31 July, Q2 (Jul–Sep) by 31 October, Q3 (Oct–Dec) by 31 January, Q4 (Jan–Mar) by 31 May. After filing Form 24Q for Q4, employers generate Form 16 Part A from TRACES, prepare Part B (salary computation), and issue both to employees by 15 June. Late filing attracts a fee of ₹200/day under Section 234E (capped at total TDS).

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