FY 2026-27 · FY 2025-26
Old Regime Deductions
TDS on Salary Calculator FY 2026-27 (Section 392): This TDS on salary calculator shows how much tax your employer should deduct from your salary every month. It works out your tax for the year in the regime you chose (new or old), takes off the TDS already deducted, and spreads the balance over the months left, as employers do under Section 392 of the Income-tax Act, 2025 (earlier Section 192). It covers the ₹60,000 rebate and marginal relief, HRA, 80C, 80D, NPS, home loan interest, previous-employer TDS, surcharge and 4% cess, for FY 2026-27 and FY 2025-26.
TDS on Salary Calculation Formula
The employer first estimates your income for the full year and the tax on it, including rebate, surcharge and cess. If it starts in April with nothing deducted, monthly TDS is simply that tax ÷ 12. Example: salary ₹15 lakh in the new regime → tax ₹97,500 → ₹8,125 a month. If by October only ₹30,000 has been deducted, the remaining ₹67,500 is spread over October to March: ₹11,250 a month.
Monthly TDS on Salary Table FY 2026-27
Full-year salary from April, below 60, no other income. Old regime column assumes ₹1.5 lakh under 80C, ₹50,000 own NPS and ₹25,000 under 80D.
| Gross salary a year | New regime: tax a year | New regime: TDS a month | Old regime (with deductions): TDS a month |
|---|---|---|---|
| ₹8,00,000 | Nil | Nil | ₹1,517 |
| ₹10,00,000 | Nil | Nil | ₹4,983 |
| ₹12,00,000 | Nil | Nil | ₹8,450 |
| ₹12,75,000 | Nil | Nil | ₹9,750 |
| ₹13,00,000 | ₹26,000 | ₹2,167 | ₹10,400 |
| ₹15,00,000 | ₹97,500 | ₹8,125 | ₹15,600 |
| ₹18,00,000 | ₹1,50,800 | ₹12,567 | ₹23,400 |
| ₹20,00,000 | ₹1,92,400 | ₹16,033 | ₹28,600 |
| ₹25,00,000 | ₹3,19,800 | ₹26,650 | ₹41,600 |
| ₹30,00,000 | ₹4,75,800 | ₹39,650 | ₹54,600 |
Up to ₹12.75 lakh salary, the new regime tax is nil after the ₹75,000 standard deduction and the ₹60,000 rebate, so no TDS should be deducted. For your own salary, use the TDS calculator above or our income tax calculator for the full year.
How to Use This TDS Calculator
- Choose the year, your age, your employer type and the regime you told your employer. If you did not choose, your employer uses the new regime.
- Pick the current month and enter the TDS already deducted this year, including any TDS by a previous employer. It is on your payslips or Form 168 (earlier Form 26AS).
- Enter your gross salary for the full year, including bonus and salary from a previous employer this year, and your Basic + DA.
- Add other income and old-regime deductions only if you declared them to your employer. Tap the Old Regime Deductions bar to open it.
- Read your result: TDS a month in both regimes, with your chosen regime ticked, the tax for the year and the balance still to be deducted. Use Copy or Excel to save it.
How Employers Calculate TDS on Salary Under Section 392
From 1 April 2026, TDS on salary is deducted under Section 392 of the Income-tax Act, 2025, which replaced Section 192 of the 1961 Act. The method has not changed:
- Estimate salary for the year: Basic, DA, HRA, allowances, bonus and taxable perquisites.
- Take off exemptions and deductions allowed in your regime: the ₹75,000 standard deduction in the new regime; in the old regime, ₹50,000 plus HRA, professional tax, 80C, 80D and others you declared with proof.
- Add other income you declared, such as interest, or a loss on a let-out or self-occupied house in the old regime.
- Work out the tax for the year at the slab rates, less the rebate under Section 156 (earlier 87A), plus surcharge if any and 4% cess. This is deducted at the average rate, month by month.
- Adjust as the year goes on. Section 392 lets the employer increase or reduce later deductions to make up any shortfall or excess.
See how the tax itself is worked out in how to calculate income tax on salary and the current income tax slabs FY 2026-27.
New vs Old Regime: Which Lowers Your TDS?
The new regime is the default. If you want TDS under the old regime, tell your employer at the start of the year, usually when you give your investment declaration. Salaried employees without business income can still pick either regime when they file their return, so TDS deducted in one regime is not final.
- The new regime usually gives lower TDS unless your exemptions and deductions are large. At ₹15 lakh, for example, the old regime only wins if they are above ₹5,43,700.
- The old regime can lower TDS if you have high HRA, a home loan, full 80C and other deductions.
The calculator shows both side by side. For break-even figures at other salaries, read old vs new tax regime, and check your HRA with our HRA exemption calculator.
Mid-Year Changes: Bonus, Job Change and Excess TDS
- Salary hike or bonus: the employer re-estimates your tax for the year and deducts the extra over the months left, or in the month the bonus is paid.
- Joining mid-year: declare your previous employer's salary and TDS in Form 122 (earlier Form 12B). Otherwise each employer deducts as if its salary were your only income, and you may owe tax when you file.
- Late proofs: if investment proofs are not given by the deadline, TDS in the last months (January to March) can rise sharply.
- Too much TDS: the employer can reduce TDS for the rest of the year; anything still extra is refunded when you file your return.
| Example: salary ₹15 lakh, new regime | Amount |
|---|---|
| Tax for the year | ₹97,500 |
| TDS deducted April to September | ₹30,000 |
| Balance from October | ₹67,500 |
| Months left (October to March) | 6 |
| TDS a month from October | ₹11,250 |
TDS on Salary Forms and Due Dates 2026
The Income-tax Rules, 2026 renumbered the salary TDS forms from 1 April 2026:
| Purpose | New form | Earlier form |
|---|---|---|
| Employee's declaration of deductions and exemptions | Form 124 | Form 12BB |
| Previous employer's salary, other income, house property loss | Form 122 | Form 12B / 12BAA |
| Statement of perquisites | Form 123 | Form 12BA |
| TDS certificate for salary | Form 130 | Form 16 |
| Quarterly TDS return for salary | Form 138 | Form 24Q |
| Annual tax statement | Form 168 | Form 26AS |
- Deposit: by the 7th of the next month; TDS deducted in March by 30 April.
- Certificate: Form 130 for the year is issued by 15 June after the year ends. For FY 2025-26, it is still Form 16.
- No PAN: TDS is deducted at the average rate or 20%, whichever is higher.
See the Income Tax Department for the Act and Rules, and check TDS credited to your PAN on the e-filing portal.
Who Should Use This Calculator, and Its Assumptions
Who it's for: salaried employees checking the TDS on their payslip, people who changed jobs mid-year, and HR and payroll teams checking monthly TDS.
- Salary is your estimate for the full year. If it changes, re-run the calculator with the new figure and the TDS deducted so far.
- Monthly TDS spreads the balance evenly over the months left, including the current month. Your employer may instead deduct extra in a bonus month.
- HRA uses Basic + DA and the rent you enter, for the full year; FY 2026-27 uses the eight-city metro list.
- For a resident individual with salary and normal-rate income. Capital gains, relief for arrears and lower-deduction certificates are not covered.
- Results are estimates. Your employer's final TDS depends on the proofs you submit.
Related: income tax calculator · income tax calculator Excel · salary breakup calculator · professional tax calculator · TDS on salary guide
Frequently Asked Questions
How is TDS on salary calculated?
Your employer estimates your income and tax for the full year in your chosen regime, takes off TDS already deducted, and divides the balance by the months left. For ₹15 lakh in the new regime, tax is ₹97,500, so TDS is ₹8,125 a month from April.
How much TDS is deducted on salary per month?
It depends on your tax for the year. In the new regime for FY 2026-27, it is nil up to ₹12.75 lakh salary, about ₹2,167 a month at ₹13 lakh, ₹8,125 at ₹15 lakh and ₹16,033 at ₹20 lakh.
Which section covers TDS on salary from April 2026?
Section 392 of the Income-tax Act, 2025. It replaced Section 192 of the Income-tax Act, 1961 from 1 April 2026. The method of deducting at the average rate is the same.
Is TDS deducted if my salary is below ₹12.75 lakh?
Not in the new regime, if salary is your only income. Taxable income up to ₹12 lakh gets the full ₹60,000 rebate, and the ₹75,000 standard deduction takes ₹12.75 lakh salary down to ₹12 lakh, so tax and TDS are nil.
Which regime does my employer use for TDS?
The new regime, unless you tell your employer you choose the old regime. If you have no business income, you can still choose either regime when you file your return.
Why did my TDS increase in January to March?
Usually because investment proofs were not accepted, salary went up, or a bonus was added. The employer recalculates your tax for the year and recovers the shortfall in the remaining months.
How is TDS calculated when I change jobs?
Give your new employer your previous salary and TDS in Form 122 (earlier Form 12B). It then works out tax on your total salary for the year and deducts the balance over the months left.
What if excess TDS is deducted from my salary?
Your employer can reduce TDS in the remaining months. Any excess still left at the end of the year is refunded when you file your income tax return.
What is Form 130?
Form 130 is the TDS certificate for salary under the Income-tax Rules, 2026, replacing Form 16 from FY 2026-27. Your employer issues it by 15 June after the year ends.
What is the TDS rate on salary if I don't give my PAN?
TDS is deducted at the average rate of tax or 20%, whichever is higher. Give your PAN to your employer to avoid this.