Discover how to use a TDS on Salary Calculator to estimate your monthly tax deductions. Learn rules, exemptions, new vs old tax regime comparison, and how to reduce TDS legally in India for FY 2024-25.
Introduction
Understanding your salary structure is crucial not just for financial planning but also for ensuring compliance with income tax laws in India. One of the key components often overlooked is TDS (Tax Deducted at Source) on salary. TDS is the portion of your income that your employer deducts every month and deposits with the Income Tax Department on your behalf.
This advance tax deduction ensures that your annual tax liabilities are covered gradually throughout the financial year, reducing the burden during tax-filing season.
Knowing your monthly TDS is important for various reasons:
- It helps in better budgeting and cash flow planning.
- It allows early identification of under or over-deductions.
- It ensures accurate income tax return (ITR) filing without surprise dues or refunds.
This is where a “TDS on Salary Calculator” becomes an essential tool. It enables salaried individuals to compute the exact amount of tax being deducted monthly based on their income, applicable exemptions, and deductions. Instead of relying solely on employers or complex manual calculations, a reliable calculator offers instant clarity and control over your finances.
For Financial Year 2024-25, there have been no major changes in TDS slab rates under both the Old and New Tax Regimes. However, understanding which regime to opt for—and how your tax liabilities vary under each—requires proper analysis. A well-designed TDS calculator simplifies this decision-making process by showing the tax outflow for both regimes, helping users make informed choices.
To assist you with this, HR Calcy’s Free TDS on Salary Calculator is now available for all users. This tool is:
- Absolutely free
- Fully updated with FY 2024-25 tax rules
- Easy to use on both desktop and mobile
- No registration or sign-up required
With this calculator, you can accurately estimate your monthly and annual TDS, compare regimes, and plan deductions in advance to minimize your tax outgo.
What is TDS on Salary?
TDS, or Tax Deducted at Source, is a mechanism introduced by the Government of India under the Income Tax Act to collect tax at the source of income generation. In simpler terms, when a salaried individual earns income, the employer is required to deduct a certain percentage of tax before crediting the salary to the employee’s account and deposit it directly with the Income Tax Department.
Definition of TDS (Tax Deducted at Source)
TDS on salary refers specifically to the tax deducted by an employer from the employee’s salary every month. The amount of TDS deducted depends on the employee’s total income, applicable deductions (like HRA, LTA, Section 80C, etc.), and the income tax slab rates as per the selected tax regime (Old or New).
Applicability for Salaried Individuals
TDS on salary is mandatorily applicable to all individuals earning a taxable salary income. It is calculated after considering exemptions and deductions available under the Income Tax Act. The following points are relevant:
- If your annual income exceeds the basic exemption limit (₹2.5 lakh under Old Regime and ₹3 lakh under New Regime for FY 2024-25), your employer is required to deduct TDS.
- Employees must declare their investment proofs, exemptions, and deduction claims at the beginning of the financial year to ensure accurate monthly TDS deduction.
- In the absence of such declarations, TDS may be calculated at a higher rate, resulting in excess deduction.
Importance from Employer and Employee Perspective
For Employers:
- It is a legal obligation under Section 192 of the Income Tax Act to deduct TDS from employee salaries.
- Non-compliance can attract interest, penalties, and prosecution under the Income Tax Act.
- Employers must issue Form 16 to employees annually, summarizing the total salary paid and TDS deducted.
For Employees:
- Regular deduction of TDS helps in even distribution of tax liability across the year.
- Ensures timely tax credit reflected in Form 26AS and AIS (Annual Information Statement).
- Avoids large tax payments at the time of income tax return filing.
- Enables hassle-free ITR filing and helps reduce the chances of notice from the IT Department.
Relevant Section: 192 of Income Tax Act
TDS on salary is governed by Section 192 of the Income Tax Act, 1961. As per this section:
- Any person responsible for paying salary is required to deduct income tax at the time of payment.
- The tax is deducted based on the estimated income of the employee for the financial year.
- The deduction must reflect the current income tax slab rates, and the employee has the option to choose between the Old Tax Regime or the New Tax Regime.
Employers are not required to obtain a TAN (Tax Deduction and Collection Account Number) for TDS on salary but must have a valid PAN and TIN registration.
How is TDS on Salary Calculated?
TDS (Tax Deducted at Source) on salary is calculated based on your estimated annual taxable income and the applicable income tax slabs under the tax regime you opt for (Old or New).
Here’s a step-by-step guide on how employers or payroll software typically compute monthly TDS:
Step-by-Step TDS Calculation Process:
- Calculate Total Annual Income
Add up your total salary components, including basic pay, HRA, bonuses, special allowances, and any other recurring earnings. - Deduct Allowable Exemptions & Deductions
- Under Old Tax Regime, deductions under various sections like:
- Section 80C (e.g., LIC, PPF, ELSS) – Up to ₹1,50,000
- Section 80D (Medical Insurance Premiums)
- HRA Exemption (as per rent paid and city type)
- Standard Deduction – ₹50,000
- Under New Tax Regime, most deductions (80C, 80D, HRA, etc.) are not allowed, but a standard deduction of ₹75,000 is available from FY 2024-25 onward.
- Under Old Tax Regime, deductions under various sections like:
- Choose the Tax Regime
- Old Regime: More beneficial if you claim multiple exemptions/deductions.
- New Regime: Lower slab rates with fewer deductions – suitable for those with minimal claims.
- Apply the Income Tax Slab Rates
- Apply the slab rates applicable to your chosen regime to compute your annual tax liability.
- Divide by 12 to Get Monthly TDS
- The calculated annual tax is equally distributed over the 12 months of the financial year to determine your monthly TDS deduction.
TDS on Salary Calculation Table (FY 2024–25)
Let’s assume a gross annual salary of ₹10,00,000 to demonstrate how TDS differs between the two regimes:
| Step | Old Tax Regime | New Tax Regime (FY 2024-25) |
|---|---|---|
| Gross Salary | ₹10,00,000 | ₹10,00,000 |
| Standard Deduction | ₹50,000 | ₹75,000 |
| Section 80C Deduction | ₹1,50,000 | Not Allowed |
| Section 80D Deduction | ₹25,000 | Not Allowed |
| HRA Exemption (assumed) | ₹1,00,000 | Not Allowed |
| Net Taxable Income | ₹6,75,000 | ₹9,25,000 |
| Income Tax Calculation | ₹25,000 (after rebate u/s 87A) | ₹48,500 (after rebate u/s 87A) |
| Cess @ 4% | ₹1,000 | ₹1,940 |
| Total Tax Payable | ₹26,000 | ₹50,440 |
| Monthly TDS Deduction | ₹2,167 | ₹4,203 |
Note: Tax rebate under Section 87A is available for individuals with taxable income up to ₹7 lakh (new regime) and ₹5 lakh (old regime), reducing the effective tax to zero. In this case, both incomes exceed rebate limits.
TDS Formula
Monthly TDS =
{(Gross Income – Exemptions – Deductions) × Applicable Tax Rate + 4% Cess} ÷ 12
Why Accurate TDS Calculation Matters
- Helps avoid under-deduction (leading to penalty during ITR filing)
- Ensures no excess tax is deducted throughout the year
- Assists in salary planning and better financial budgeting
You can simplify all this with HR Calcy’s Free TDS on Salary Calculator – a powerful tool designed for both the Old and New Regimes, customized for FY 2024-25 slab rates.
Latest Income Tax Slabs for FY 2024-25
Understanding the applicable income tax slab rates is crucial for accurate TDS calculation. The financial year 2024-25 continues with two tax regimes – New Tax Regime and Old Tax Regime – allowing salaried individuals to choose the one that suits them best.
New Tax Regime (Default) – Post Budget 2023 Updates
The New Regime became the default option starting from FY 2023-24. For FY 2024-25, the structure remains unchanged with:
- Simplified slab rates
- Standard Deduction of ₹75,000 for salaried individuals
- No other major exemptions/deductions allowed (like 80C, 80D, HRA, etc.)
Old Tax Regime – With Deductions and Exemptions
This regime is still available as an optional choice. Taxpayers can continue claiming exemptions and deductions like:
- Section 80C (LIC, PPF, ELSS)
- Section 80D (Health Insurance)
- HRA, LTA, Education Allowance, and more
- Standard Deduction of ₹50,000
Income Tax Slab Comparison Table for FY 2024–25
| Annual Income | New Tax Regime (FY 2024-25) | Old Tax Regime (FY 2024-25) |
|---|---|---|
| Up to ₹2.5 lakh | Nil | Nil |
| ₹2.5 lakh – ₹5 lakh | 5% | 5% |
| ₹5 lakh – ₹6 lakh | 5% | 20% |
| ₹6 lakh – ₹9 lakh | 10% | 20% |
| ₹9 lakh – ₹12 lakh | 15% | 30% |
| ₹12 lakh – ₹15 lakh | 20% | 30% |
| Above ₹15 lakh | 30% | 30% |
| Standard Deduction | ₹75,000 | ₹50,000 |
| Rebate u/s 87A | Up to ₹7 lakh (Full Rebate) | Up to ₹5 lakh (Full Rebate) |
Note: Taxpayers must opt-in to the Old Regime each financial year when filing ITR if they wish to claim deductions.
Which Regime is Better?
- Choose New Regime if you have minimal deductions or prefer simplicity
- Choose Old Regime if you claim substantial deductions under 80C, HRA, etc.
Need help deciding? Use our Income Tax Calculator to compare your tax liability under both regimes instantly.
TDS on Salary Calculator – What It Is & Why Use It?
In today's fast-paced work environment, keeping track of your Tax Deducted at Source (TDS) can be overwhelming—especially when your salary structure changes, or when switching between the old and new tax regimes. That’s where a TDS on Salary Calculator becomes an essential tool for every salaried individual in India.
What is a TDS on Salary Calculator?
A TDS on Salary Calculator is a digital tool that helps you estimate the amount of tax that will be deducted from your monthly salary, based on your income, deductions, and applicable tax regime. It simplifies the complex tax computation process and ensures you’re not caught off guard by a sudden dip in take-home pay.
This tool is particularly helpful during:
- New job offers (to estimate in-hand salary)
- Annual appraisals
- Income tax planning and declaration submission
What Does the Calculator Do?
The calculator automates the entire process by applying current tax slab rates, standard deductions, and other tax rules based on your input. It instantly provides:
- Your monthly TDS deduction
- Your net in-hand salary
- Annual tax liability under both regimes (in some tools)
- Helpful breakdowns based on income tax laws for FY 2024-25
Inputs Required for TDS Calculation
To give you accurate results, the calculator typically asks for:
| Input Field | Description |
|---|---|
| Monthly or Annual Gross Salary | Basic + Allowances |
| Age | For slab eligibility (especially for senior citizens) |
| Tax Regime Preference | Old or New |
| Deductions Under 80C, 80D | LIC, PPF, ELSS, Mediclaim, etc. |
| HRA & Other Exemptions | Based on rent paid and location |
| Standard Deduction | ₹50,000 (Old) or ₹75,000 (New) auto-applied |
Pro Tip: Keeping all details ready helps ensure a near-accurate TDS estimate.
Outputs You’ll Get
Once you enter your details, the calculator will display:
- Monthly TDS Deduction
- Annual Tax Payable
- Monthly Net (In-Hand) Salary
- Total Deductions Considered
- Tax Regime Summary
Some advanced calculators also give a comparison between Old vs New Regime, helping you choose the best option to save more.
Try HR Calcy’s Free TDS on Salary Calculator
HR Calcy offers a powerful and user-friendly TDS on Salary Calculator designed for Indian salaried professionals. It’s:
- 100% Free to use
- No registration or login required
- Updated with latest FY 2024-25 tax rules
- Mobile and desktop optimized
It’s perfect for job seekers, employees, HR professionals, and freelancers who want instant, accurate TDS information.
Benefits of Using an Online TDS Calculator
In the digital age, manually calculating TDS deductions can be both time-consuming and error-prone. That’s why more individuals and HR professionals are turning to reliable online TDS on Salary Calculators to streamline the process and ensure compliance with income tax regulations.
Here’s how these calculators make a real difference:
1. Accurate Monthly Financial Planning
A TDS on Salary Calculator ensures that your monthly tax deductions are estimated with high precision. This allows salaried individuals to:
- Plan monthly budgets effectively
- Avoid surprises in take-home salary
- Set aside the right amount for tax payments
By knowing your exact monthly TDS, you gain full visibility into your net salary, helping you manage EMI payments, SIPs, and household expenses confidently.
2. Smart Tax-Saving Decisions
One of the most powerful uses of a TDS calculator is in tax planning:
- It allows you to test different deduction scenarios (like how much to invest under 80C or 80D)
- You can compare tax outflows under the old vs new tax regime
- It helps determine if you should claim HRA, home loan interest, or other deductions
This lets you maximize your tax savings legally and efficiently.
3. Valuable Tool for HR & Payroll Departments
For HR and payroll professionals, a reliable TDS calculator:
- Speeds up salary structure planning for new hires
- Helps in bulk salary processing with accurate tax deductions
- Ensures compliance with Section 192 of the Income Tax Act
- Reduces back-and-forth with employees during tax declaration periods
This contributes to employee satisfaction by ensuring transparency in salary and TDS structures.
4. Saves Time & Minimizes Manual Errors
Manual tax calculations are prone to mistakes—especially when handling exemptions, changing salary components, and switching tax regimes.
Online TDS calculators:
- Perform instant calculations
- Factor in latest income tax slab rates and standard deduction updates
- Eliminate the risk of manual entry errors
- Reduce dependency on complex Excel formulas or third-party consultants
They save both time and effort, making them an essential part of every professional’s financial toolkit.
TDS Calculator (New Vs. old Tax Regime)
| Head | Details/ Amt. |
|---|---|
| Gross Income | |
| Exemptions u/s 10 A (HRA etc.) | |
| Professional Tax | |
| Net Income under Salaries | 0.00 |
| Standard Deduction (Auto Applied) | 50000 |
| Deductions u/s 80 C (PF, PPF, Ins, ELSS, NPS: Max Rs.150000) | |
| Deductions u/s 80 CCD (NPS: Max Rs. 50000/-) | |
| Deductions u/s 80 D (Health Insurance: Max Rs. 35000/- ) | |
| Deductions u/s 80 G (Eligible Donations) | |
| Deductions u/s 80 E (Education Loan Interest) | |
| Deductions u/s 80 TTA (FD/Post Office Interest: Max Rs. 40000/-) | |
| Tax Benefit u/s 24 (Home Loan Interest Paid: Max Rs. 200000/-) | |
| Total Deductions/Benefits | 0.00 |
How to Use HR Calcy’s TDS on Salary Calculator (Step-by-Step Guide)
Using HR Calcy’s TDS on Salary Calculator is quick, easy, and requires no special expertise. Follow these simple steps to get your monthly TDS estimation instantly:
Step 1: Visit the HR Calcy TDS Calculator
Go to the official HR Calcy TDS on Salary Calculator page. The tool is accessible on both desktop and mobile devices, designed for smooth user experience.
Step 2: Enter Your Monthly Gross Salary
Input your total gross salary before any deductions or taxes. This includes basic salary, allowances, bonuses, and any other salary components.
Step 3: Select Your Age Group
Choose your age category from the options provided. This is important as tax slab rates differ for:
- Below 60 years
- Senior Citizens (60 to 80 years)
- Super Senior Citizens (above 80 years)
Step 4: Choose the Tax Regime
Pick either the Old Tax Regime or the New Tax Regime, depending on your preference and eligibility. The calculator automatically applies the correct slab rates accordingly.
Step 5: Input Eligible Deductions
Add any applicable deductions under sections like:
- Section 80C (PF, PPF, Life Insurance, ELSS, etc.)
- Section 80D (Medical Insurance)
- House Rent Allowance (HRA) exemptions
You can enter the exact amount to optimize your tax liability calculation.
Step 6: Click on Calculate
Once all details are entered correctly, click the Calculate button. The calculator will instantly compute your monthly TDS amount using the latest FY 2024-25 tax rules.
Step 7: View Your Detailed Monthly TDS
The results will display:
- Your monthly TDS deduction
- Annual tax payable
- Net take-home salary after TDS
- A breakdown of the tax slabs applied
This helps you understand how your tax is computed and plan your finances accordingly.
Common Deductions That Reduce TDS
Reducing your Tax Deducted at Source (TDS) on salary legally is possible by claiming various deductions under the Income Tax Act. Understanding these deductions can help you optimize your tax liability and increase your take-home salary.
Here are some of the most commonly used deductions that impact TDS calculation:
Section 80C – Investments and Savings
One of the most popular and widely used deductions, Section 80C allows you to reduce taxable income by investing in specified financial instruments such as:
- Life Insurance Premium (LIC)
- Public Provident Fund (PPF)
- Employee Provident Fund (EPF)
- Equity Linked Savings Scheme (ELSS)
- Tuition fees for children
- Principal repayment on home loan
Maximum limit: ₹1,50,000 per financial year.
Section 80D – Health Insurance Premium
This deduction applies to premiums paid for health insurance policies for yourself, spouse, children, and parents.
- Deduction up to ₹25,000 for self, spouse, and children
- Additional ₹25,000 for parents (₹50,000 if parents are senior citizens)
Maximum limit: ₹50,000 (if senior citizen parents included).
Section 24(b) – Home Loan Interest
Interest paid on a home loan for a self-occupied property is deductible under Section 24(b).
- Deduction up to ₹2,00,000 per year on interest payments
- Applies only to self-occupied or vacant property
House Rent Allowance (HRA)
HRA is a common component of salary for employees living in rented accommodation.
- Eligible for exemption under certain conditions
- Calculation depends on rent paid, basic salary, and city of residence
NPS Contribution – Section 80CCD(1B)
Additional deduction for contributions to the National Pension System (NPS).
- Allows an extra deduction of up to ₹50,000 over and above Section 80C limit
- Encourages retirement savings
Table: Common Tax Deductions and Maximum Limits
| Deduction Section | Description | Maximum Limit (₹) |
|---|---|---|
| 80C | LIC, PPF, EPF, ELSS, Tuition Fees | 1,50,000 |
| 80D | Health Insurance Premium | 25,000 to 50,000 |
| 24(b) | Home Loan Interest | 2,00,000 |
| HRA | House Rent Allowance Exemption | Varies as per rent |
| 80CCD(1B) | NPS Contribution | 50,000 |
By accurately declaring these deductions in your salary details or while using a TDS on Salary Calculator, you can significantly reduce your monthly TDS and increase your net take-home pay.
TDS Under New Regime vs Old Regime
Choosing between the Old Tax Regime and the New Tax Regime is a critical decision that impacts your TDS on salary and overall tax liability. Each regime has distinct features, benefits, and limitations.
Here’s a comparison table highlighting key differences:
| Feature | Old Regime | New Regime |
|---|---|---|
| Deductions | Allowed (Section 80C, 80D, etc.) | Mostly Not Allowed |
| HRA/80C/80D | Applicable | Mostly Not Applicable |
| Tax Rates | Higher | Lower |
| Best For | Taxpayers with many deductions and exemptions | Taxpayers with no or minimal deductions |
When to Choose Which Regime?
- Old Regime: Beneficial for salaried individuals who invest in tax-saving instruments and claim exemptions like HRA, standard deduction, insurance premiums, and home loan interest.
- New Regime: Suitable for taxpayers who prefer simplicity and do not claim many deductions, as the tax slabs are more streamlined with lower rates but fewer exemptions.
Use Case Examples
Case 1: Salaried Individual with ₹12 Lakh Annual Income and Deductions
- Income: ₹12,00,000 per annum
- Deductions under 80C, 80D, and HRA: ₹2,50,000
- Old Regime: Lower taxable income after deductions → lower TDS
- New Regime: No deductions allowed → higher taxable income → more TDS
Result: Old regime saves more tax due to significant deductions.
Case 2: Salaried Individual with ₹12 Lakh Annual Income and No Deductions
- Income: ₹12,00,000 per annum
- Deductions: None
- Old Regime: Tax on full ₹12L at higher slab rates
- New Regime: Tax on ₹12L at lower slab rates
Result: New regime results in lower tax and TDS, making it more advantageous.
The choice between regimes depends on your financial habits, investments, and preference for simplicity versus tax planning. Using a TDS on salary calculator can help you simulate both scenarios and decide the best option to minimize your monthly TDS and maximize take-home pay.
Employer’s Responsibility for TDS Deduction
Employers play a crucial role in the proper deduction and remittance of TDS on salary. Their responsibilities ensure compliance with the Income Tax Act and protect employees from tax-related discrepancies.
Monthly Deduction and Deposit Deadlines
- Employers are required to deduct TDS from employees’ salary every month based on the estimated annual income and applicable tax slabs.
- The deducted TDS must be deposited with the government by the 7th of the following month (e.g., TDS deducted in April must be deposited by 7th May).
- Timely deposit is essential to avoid interest and penalties.
Issuance of Form 16
- Employers must issue Form 16, a TDS certificate, to employees annually.
- Form 16 contains detailed information about the salary paid, TDS deducted, and deposited for the financial year.
- This certificate is crucial for employees to file their income tax returns and claim refunds if any.
Penalties for Non-Compliance
- Failure to deduct or deposit TDS on time attracts penalties and interest under the Income Tax Act.
- Employers may be liable to pay interest of 1% per month on delayed TDS payments.
- Additionally, employers may face penalties and prosecution for willful non-compliance, impacting their reputation and financial standing.
Employee’s Right to Verify Deductions
- Employees have the right to verify the TDS deducted and deposited by their employer through the Form 26AS available on the Income Tax Department’s portal.
- Form 26AS acts as a consolidated tax statement showing all tax credits.
- If discrepancies arise, employees can raise concerns with their employer or approach the tax authorities.
By ensuring timely and accurate TDS deduction, employers maintain transparency and trust with their employees, while employees can confidently manage their tax liabilities.
Form 16 and TDS Certificate
What is Form 16?
Form 16 is an official TDS certificate issued by an employer to salaried employees. It serves as proof of tax deducted at source on the salary paid during a financial year. This form contains detailed information about the employee’s salary, TDS deducted, and deposited with the government under Section 192 of the Income Tax Act.
Form 16 is divided into two parts:
- Part A: Details of TDS deducted and deposited, including TAN of employer, PAN of employee, and summary of TDS.
- Part B: Detailed breakup of salary, exemptions, deductions claimed, and tax calculation.
How Form 16 Helps in Filing Income Tax Returns (ITR)
Form 16 is a crucial document for employees when filing their income tax returns. It provides:
- Verified details of income and TDS deducted by the employer.
- Clear information on eligible deductions and exemptions claimed.
- Helps in accurately reporting income and tax credits to avoid discrepancies.
Filing ITR with Form 16 ensures smooth processing and faster refunds, if applicable.
Verifying TDS Deducted vs Actual Tax Payable
Employees should verify that the TDS deducted as per Form 16 matches their actual tax liability calculated based on total income and deductions. Sometimes, TDS may be higher or lower due to:
- Changes in salary during the year.
- Additional income from other sources.
- Deductions not accounted for by the employer.
In such cases, employees must calculate tax payable and pay any balance or claim a refund accordingly.
Link to Download Sample Form 16
For a better understanding of Form 16, you can download a sample Form 16 from the official Income Tax India website here:
Sample Form 16 - Income Tax India
Mistakes to Avoid While Calculating TDS
Calculating TDS on salary accurately is essential to avoid tax-related issues. Here are some common mistakes to watch out for:
Ignoring Tax Regime Selection
One of the most frequent errors is not choosing the correct tax regime — Old vs New. Each regime has different slab rates and rules for deductions. Selecting the wrong regime can lead to incorrect TDS deduction, resulting in either excess tax payment or tax shortfall.
Not Declaring Exemptions Timely
Employees often fail to submit their proof of eligible exemptions and deductions (like investments under Section 80C, medical insurance, or HRA) on time to their employer. This delay causes higher TDS deduction than necessary, affecting monthly cash flow and requiring adjustment during filing.
Mismatch in Investment Proofs
Providing incorrect or inconsistent investment proofs can lead to disallowed deductions by the employer during TDS calculation. This mistake not only results in higher TDS but may also raise red flags during tax assessment.
Not Updating PAN or Salary Changes
Failing to update PAN details or changes in salary during the financial year can cause errors in TDS calculation. Incorrect PAN details can lead to TDS being deducted at a higher rate, while unreported salary revisions might result in inaccurate tax deductions.
Avoiding these mistakes ensures accurate TDS deductions, better tax planning, and smooth compliance with the Income Tax rules.
Best TDS Calculators Online for Indians
Calculating TDS on salary accurately is crucial for effective tax planning. Here are some of the best TDS calculators available online, trusted by Indian taxpayers:
HR Calcy TDS on Salary Calculator
HR Calcy TDS Calculator offers a user-friendly interface tailored specifically for Indian salaried employees. It provides instant monthly TDS calculations based on your salary, deductions, and preferred tax regime. The tool is free, regularly updated with the latest tax slabs, and doesn’t require any registration.
Income Tax Department TDS Calculator
The official Income Tax Department Calculator is a reliable and authoritative source for TDS computations. It covers a broad spectrum of income types and ensures compliance with the latest tax laws. Though comprehensive, it may be less intuitive for beginners compared to other tools.
ClearTax TDS Calculator
ClearTax is a popular tax filing platform in India, offering a simple and effective TDS calculator. It includes additional features like tax-saving investment suggestions and helps users understand how different deductions impact their tax liability.
Tax2win TDS Calculator
Tax2win provides an easy-to-use TDS calculator with step-by-step guidance. It also offers expert tax advice and assistance in filing returns, making it suitable for users looking for an integrated tax solution.
Feature Comparison
| Feature | HR Calcy | Income Tax Dept. | ClearTax | Tax2win |
|---|---|---|---|---|
| User-Friendly Interface | Yes | Moderate | Yes | Yes |
| Free to Use | Yes | Yes | Yes | Yes |
| Updated with Latest Slabs | Yes | Yes | Yes | Yes |
| Supports Multiple Regimes | Yes | Yes | Yes | Yes |
| Additional Tax Planning | No | No | Yes | Yes |
| Registration Required | No | No | Optional | Optional |
For hassle-free and accurate monthly TDS calculations, HR Calcy’s calculator stands out for its simplicity and Indian salary-specific focus.
Conclusion
Understanding your monthly TDS is vital for effective financial management and tax compliance. Knowing how much tax will be deducted from your salary every month helps you plan your expenses better and avoid surprises during tax filing.
Using a TDS on Salary Calculator simplifies this process by providing accurate, instant calculations based on your salary, deductions, and tax regime choice. This tool empowers you to make informed decisions about investments and tax planning.
We strongly encourage you to use HR Calcy’s free TDS on Salary Calculator, which is designed specifically for Indian salaried professionals and updated regularly with the latest tax rules for FY 2024-25.
Remember, choosing between the Old and New Tax Regimes and properly declaring your eligible deductions can significantly affect your tax liability. Taking timely action on your tax planning before the financial year ends can maximize your savings and reduce your tax burden.
Key Takeaways
- TDS is mandatory for all salaried individuals to ensure timely tax collection by the government.
- Choosing the right tax regime — Old or New — is crucial for optimizing your tax liability.
- Online TDS calculators simplify the process of estimating monthly tax deductions with accuracy and convenience.
- Declaring your investments and exemptions early helps reduce your monthly TDS and improves cash flow.
- HR Calcy provides a free and accurate TDS on Salary Calculator tailored for Indian taxpayers to assist in efficient tax planning.
FAQ
What is TDS on salary?
TDS on salary means tax deducted at source by your employer before crediting your salary to your account.
How is TDS calculated on salary?
TDS is calculated by estimating your annual income, subtracting eligible deductions, applying tax slab rates, and dividing by 12.
What are the TDS slab rates for FY 2024-25?
For FY 2024-25, under the new regime, income up to ₹3L is tax-free. Different slab rates apply based on chosen tax regime.
Can I reduce my TDS by submitting investment proofs?
Yes. Submitting valid proofs under Sections like 80C, 80D, and HRA helps reduce taxable income and TDS amount.
Is TDS applicable under the new tax regime?
Yes, but fewer deductions are allowed. TDS will still be deducted based on income and applicable slab rates.
Where can I calculate my TDS on salary for free?
You can use HR Calcy’s free TDS on Salary Calculator to instantly know your monthly TDS based on age, regime, and deductions.
What happens if my employer deducts extra TDS?
If excess TDS is deducted, you can claim a refund while filing your income tax return.
Is Form 16 proof of TDS deducted?
Yes. Form 16 issued by your employer shows the total TDS deducted during the financial year.
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