TDS on Salary Calculator
Work out monthly TDS on salary using the average-rate method — the whole year's estimated tax, less what has already been deducted, spread across the remaining months. Not monthly slabs on a monthly salary.
Free · No sign-up · Nothing leaves your browser · Figures reviewed 22 September 2026
Your details
Including anything from a previous employer that you declared on Form 122.
It can only increase TDS, never reduce it.
TDS to deduct each remaining month
₹8,125
₹97,500 still to deduct, spread over 12 months.
Projected for the year
- Salary already paid
- ₹0
- Salary still to be paid₹1,25,000 × 12 months
- ₹15,00,000
- Projected gross
- ₹15,00,000
- Standard deduction
- ₹75,000
- Taxable income
- ₹14,25,000
The deduction
- Tax for the year
- ₹97,500
- Already deducted
- ₹0
- Still to deduct
- ₹97,500
- Per remaining month
- ₹8,125
TDS on salary uses the average-rate method: the whole year's estimated tax divided across the remaining months, not monthly slabs applied to a monthly salary.
It must be reprojected every month as actuals, declarations and proofs change. That is why the deduction usually rises in January and February, when unsubstantiated declarations are reversed.
Declared other income may only ever increase TDS. Section 392(4)(b) means a loss under another head cannot reduce salary TDS — only a house-property loss and tax already deducted elsewhere can.
If you joined mid-year and did not give your new employer details of your previous salary on Form 122, TDS will be under-deducted, because both employers give you the basic exemption and the standard deduction.
This is an estimate for planning, not tax advice. It uses the FY 2026-27 rates and assumes a standard salary structure — your actual liability depends on your full income, declarations and proofs.
TDS on salary is not a monthly tax calculation. Section 392 requires the employer to estimate the year's salary income, compute the tax on it, subtract what has already been deducted, and divide the balance across the months that are left.
That is why your deduction changes during the year. Every month the projection is redone, and in January and February declarations without proofs get reversed — which is when most people discover their TDS has jumped.
The eight steps section 392 sets out
Project the year's salary. Add declared other income and subtract any declared house-property loss. Apply the exemptions and deductions allowed under the employee's regime. Compute tax, then surcharge, marginal relief, the rebate, and 4% cess. Reduce by arrears relief if claimed. Reduce by tax already deducted, including by a previous employer. Divide what is left across the remaining months — and redo the whole thing next month.
Declared income can only push TDS up
Section 392(4)(b) is explicit: the tax deductible may not be reduced except on account of a house-property loss or tax already deducted elsewhere. A loss under any other head cannot be used to reduce salary TDS.
An employer must also obtain evidence of prescribed claims before allowing them — section 392(5)(b) makes that mandatory, which is the legal basis for the proof-collection exercise every January.
Joining mid-year
If you change jobs and do not give your new employer details of your previous salary on Form 122, they compute TDS on their own salary alone. Both employers then give you the basic exemption and the standard deduction, so TDS is under-deducted and the shortfall lands as a tax demand at filing.
There is no statutory deadline for furnishing Form 122, which is exactly why it gets forgotten.
Frequently asked questions
- How is TDS on salary calculated?
- By the average-rate method: the employer estimates your total salary for the year, computes the tax on it including rebate, surcharge and cess, subtracts tax already deducted, and divides the balance across the remaining months of the year.
- Why did my TDS suddenly increase in January?
- Because declarations you made in April without proof get reversed when proofs are collected, usually in January and February. The year's tax is recomputed on the substantiated figure and the shortfall is recovered across the months left.
- Can I reduce TDS by declaring a loss?
- Only a house-property loss. Section 392(4)(b) prevents any other declared loss from reducing salary TDS — declared other income can only increase it.
- What happens if I do not declare my previous employer's salary?
- Your new employer computes TDS on its own salary only, so both employers give you the basic exemption and standard deduction. TDS is under-deducted all year and you pay the difference, with interest, at filing.
About this tool
Built by the ViniOffice team. Figures and rules last reviewed 22 September 2026 against the statutory reference this team maintains. Indian statutory rates are date-effective and change by notification — confirm against the current one before running payroll or filing. This is an estimate for planning, not tax advice. It uses the FY 2026-27 rates and assumes a standard salary structure — your actual liability depends on your full income, declarations and proofs.
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