TDS Calculator
Estimate monthly TDS deduction from your salary. Helps in planning cash flow.
Salary Details
Estimates based on New Tax Regime 2024-25.
TDS Deduction
Monthly TDS Cut
₹0
Total Annual Tax: ₹0
Why is my take-home salary less?
Understanding TDS is key to planning your cash flow. It is not a separate tax, but simply ‘Advance Tax’ paid monthly.
How to Reduce TDS?
- Declare Investments: Submit proofs for 80C (LIC, PPF), 80D (Health Insurance) early in the year.
- Claim HRA: Submit rent receipts and landlord PAN.
- Home Loan: Declare interest and principal repayment.
- NPS: Utilize the extra ₹50,000 deduction under 80CCD(1B).
New vs Old Regime Impact
- New Regime: Lower tax rates, but NO exemptions (HRA/80C disallowed).
- Old Regime: Higher rates, but allows all deductions.
- Employers default to New Regime unless you explicitly opt for Old.
Frequently Asked Questions
What is TDS on salary?
Tax Deducted at Source (TDS) is a mechanism where the employer deducts income tax from your monthly salary and deposits it with the government on your behalf.
How is TDS calculated?
The employer estimates your total annual income, subtracts deductions (80C, HRA, etc.), calculates total tax liability, and divides it by 12 to deduct monthly.
Why is my TDS deducting higher?
This happens if you haven't submitted investment proofs (like Rent receipts, LIC premiums) to your employer, or if you received a bonus which pushed you into a higher tax slab.
Can I stop TDS deduction?
No, if your income exceeds the taxable limit (₹7 Lakhs for New Regime), TDS is mandatory. You can only reduce it by declaring tax-saving investments.
What is Form 16?
Form 16 is a certificate issued by your employer (usually in May/June) detailing the TDS deducted and deposited during the financial year. It is crucial for filing ITR.
Is TDS deducted on gross or net salary?
TDS is calculated on your 'Taxable Income', which is Gross Salary minus Exemptions (like HRA) and Deductions (like Standard Deduction, 80C).
What if excess TDS is deducted?
Don't worry. You can claim a refund for the excess amount when you file your Income Tax Return (ITR).
Are tax slabs different for 2024-25?
Yes, the New Tax Regime is the default now. Income up to ₹3 Lakhs is nil tax. Income from ₹3L-₹7L is 5% (but rebate makes it zero tax up to ₹7L).
Is TDS deducted on annual bonus?
Yes, bonus is fully taxable. TDS is usually deducted at the highest slab rate applicable to you on the bonus amount.
What is Section 192?
Section 192 of the Income Tax Act governs the deduction of TDS on salary income.