TDS on Salary Calculator FY 2025-26
TDS on salary is calculated by your employer based on projected annual income and deductions. For FY 2025-26 under the new regime: income up to Rs 12 lakh has zero tax after the Section 87A rebate. Above Rs 12 lakh, applicable slabs apply. Monthly TDS = Estimated annual tax / 12.
TDS Rate
10%
TDS Amount
₹10,000
Net Payment
₹90,000
Without PAN, TDS is deducted at 20% (Section 206AA). Rates: 194J: 10%, 194I: 10%, 194C: 1-2%, 194A: 10%, 194H: 5%. Salary TDS varies — shown as flat 10% estimate.
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Common questions about TDS on Salary Calculator FY 2025-26
How is TDS on salary calculated by employer?
Your employer estimates your annual income (CTC minus exemptions declared), applies the appropriate tax regime, calculates annual tax, and divides by 12 for monthly TDS. If you declare HRA, LTA, and 80C investments under old regime, employer uses these to reduce taxable income. If no declaration is submitted, employer defaults to new regime from FY 2024-25 onwards.
How do I reduce TDS on salary?
Under old regime: maximize 80C (Rs 1.5 lakh), 80D medical insurance (Rs 25,000-50,000), NPS contribution (Rs 50,000 additional under 80CCD), HRA claim if renting, and LTA. Submit these declarations to employer at year start. Under new regime: standard deduction Rs 75,000 is automatic, other deductions are not available.
What happens if my employer deducts excess TDS?
Excess TDS is refunded when you file ITR. The refund process takes 15-90 days after filing. File ITR 1 or ITR 2 accurately with your Form 16 details. Ensure your bank account is linked and validated in the ITR for direct refund credit. Refund with interest (6% per annum) is paid if ITR is filed within due date.