On a ₹15,00,000 salary in the new regime, TDS is ₹8,125 a month. That is ₹97,500 of tax for the year, leaving ₹1,16,875 a month in hand before other deductions.
What this calculates
Enter your annual salary, choose the new or old regime and, for the old regime, your deductions. This works out the tax for the year with the 87A rebate, surcharge and cess, and the TDS your employer deducts each month, adjusted for any months already gone and TDS already deducted. The slabs are for FY 2026-27 and are read from the same data as the income tax calculator, from the Income Tax Department, and are reviewed at every Budget.
The formula
Tax for the year
tax = slab tax − 87A rebate + surcharge, plus 4% cessMonthly TDS
TDS = (tax for the year − TDS already deducted) ÷ months leftFor the new regime the taxable income is the salary less the standard deduction; the old regime also allows HRA, 80C, 80D and home loan interest.
Worked example
In the old regime with ₹1,50,000 under 80C, ₹25,000 under 80D and ₹1,20,000 of HRA, the same salary pays ₹1,65,360 a year, or ₹13,780 a month. If ₹60,000 has been deducted with 4 months left, the rest is (₹97,500 − ₹60,000) ÷ 4 = ₹9,375 a month.
When to use it, and the mistakes to avoid
Use it to check a payslip, to plan the deductions you will declare, or to see how TDS changes for the rest of the year after a raise.
The mistakes that cost the most:
- Choosing a regime without comparing. The better one depends on your deductions.
- Forgetting to submit investment proofs. The employer then deducts more in the last months.
- Reading TDS as the final tax. It is an advance; your return settles the actual tax.
- Leaving out other income. Interest or rent you do not declare is not in the employer's estimate.
- Using last year's slabs. Check the Income Tax Department site for the current ones.
FAQ
What is TDS on salary?
Tax Deducted at Source on salary is the income tax your employer holds back from each month's pay and deposits with the government on your behalf. It is meant to add up to the tax you owe for the year, estimated from your salary, your chosen tax regime and the investment proofs you have given.
How is the monthly TDS worked out?
Your employer estimates the taxable income for the year, works the tax on it under your regime with the 87A rebate, surcharge and 4% cess, and divides it by the months left. On ₹15,00,000 in the new regime the tax is ₹97,500, so TDS is ₹8,125 a month.
Can I change my regime, and what does it do to TDS?
Yes. You tell your employer which regime you want at the start of the year, and TDS follows it. You can still pick the other regime when you file your return, and any excess TDS comes back as a refund. The Income Tax calculator shows both regimes side by side to help you choose.
Why would TDS go up or down during the year?
The employer recalculates when your salary changes, when you submit or change investment proofs, or when you declare other income. Whatever has been deducted so far is subtracted and the rest is spread over the months left. Use the months left and TDS deducted fields to see this.
Is there no TDS if my income is under ₹12 lakh?
In the new regime, taxable income up to ₹12,00,000 gets a rebate under section 87A that cancels the tax, so TDS is zero. For a salary, that is up to ₹12,75,000 after the ₹75,000 standard deduction. Just above it, marginal relief limits the tax to the extra income. Check the current limits on the Income Tax Department site.