How does an employer calculate TDS on salary?

Your employer projects your annual income, subtracts deductions such as 80C and 80D, works out the tax on the taxable amount, then deducts one-twelfth of it each month.

What deductions reduce TDS on salary?

Common ones are the standard deduction, 80C (PF, ELSS, life insurance), 80D (health insurance), HRA and home-loan interest. Higher deductions mean lower taxable income and lower TDS.

What happens if too much TDS is deducted?

You can claim a refund when you file your income tax return, provided your actual tax for the year is lower than the TDS already deducted.

What are the current income tax slabs?

Slabs differ between regimes and change annually. For illustration this calculator uses FY 2023-24 rates: up to 5% to 30% in the old regime, and 0% to 30% over five brackets in the new regime.

Do I need to file a return if TDS is already deducted?

You should still file if your income exceeds the basic exemption limit, you want a refund, or you have additional income. TDS is not a substitute for filing.

Is this TDS calculator accurate?

It is a close estimate using simplified slabs, cess and rebate. Real calculations include surcharge and exact annual rules, so verify with official tools before final reporting.

Home › Calculators › TDS Calculator

TDS Calculator (India)

Estimate the income tax on your salary and your taxable income. Enter gross salary, exemptions and 80C or 80D deductions, pick the old or new regime, and this free TDS calculator shows your estimated tax and effective rate — privately, with nothing uploaded.

Annual gross salary (₹)

Exempt income / HRA-LTA (₹)

Deduction 80C (₹)

Deduction 80D (₹)

Tax regime

What is a TDS calculator?

A TDS calculator (Tax Deducted at Source calculator) estimates how much income tax is deducted from a salaried person's income. A TDS on salary is the tax your employer deducts from every month's pay and deposits with the government on your behalf, based on an estimate of your full-year income.

This free TDS calculator keeps the inputs simple: a gross salary, any exempt income such as HRA or LTA, and the two most used deductions — 80C (PF, ELSS, life insurance) and 80D (health insurance). It also lets you choose between the old and new tax regimes, because the two apply very different slabs and allow different deductions. The old regime rewards saver-style deductions, while the new regime offers lower slabs but gives up 80C, 80D and most other exemptions.

The tool subtracts your deductions from gross income to find taxable income, applies the slab rate plus the health and education cess, and shows the estimated annual tax and the monthly TDS. Because everything runs on JavaScript in your browser, your salary figures never leave your device.

How to use this TDS calculator

Enter your annual gross salary.
Add any exempt income such as HRA or LTA, if you have it.
Enter your 80C and 80D deductions (the tool caps 80C at ₹1.5 lakh and 80D at ₹25,000).
Choose the old or new tax regime.
Click Calculate TDS to see taxable income, estimated tax and monthly TDS.

How TDS on salary is estimated

Taxable income = Gross salary − Exemptions − 80C − 80D   (old regime)
Taxable income = Gross salary − Standard deduction        (new regime)
Estimated tax = Slab tax on taxable income + 4% cess

Your annual tax is divided by 12 for the monthly TDS.

Example

With the defaults — ₹10,00,000 gross, ₹1,50,000 under 80C, ₹25,000 under 80D and the old regime — taxable income is ₹8,25,000. The slab tax is ₹77,500 plus 4% cess of ₹3,100, giving an estimated tax of ₹80,600 (8.06% effective, about ₹6,717 as monthly TDS). Switch to the new regime: only the ₹50,000 standard deduction applies, so taxable income rises to ₹9,50,000, but the lower slabs bring the tax down to roughly ₹54,600. Here the new regime wins, yet with heavy 80C and 80D claims the old regime can be better.

Who is this TDS calculator for?

This TDS calculator is built for anyone who wants a quick, private estimate of how much income tax comes off a salary before filing — no matter their stage of life. It is especially handy for the four groups below because their deduction strategies and slab outcomes differ a lot.

Students and young adults: if you just landed your first job, a TDS calculator for students and young adults shows how much of a starting salary actually reaches your bank, so you can plan rent, a new commuter pass and savings. It also reveals that the new regime often leaves low salaries with no tax at all.
Couples: for couples, the key question is whether claiming 80C and 80D under the old regime beats the new regime's lower slabs. Run both partners' incomes and the combined tax to see which filing split and deduction mix minimises the household's total TDS.
Salaried professionals: this is your monthly reality check. Use the TDS calculator to match the deduction shown on your payslip, plan 80C and 80D contributions across the year, and decide which regime to opt for before your employer locks it in.
Retirees: a TDS calculator for retirees helps you estimate tax on pension and other taxable income, so you can budget a stable post-retirement cash flow and understand how much is withheld before it reaches you.

TDS tax slabs by income

The table below shows the FY 2023-24 income tax slabs the calculator applies, then the estimated annual tax and monthly TDS for a few sample salaries under both regimes. Figures use the tool's own formula: the old regime deducts the standard 80C (₹1.5 lakh) and 80D (₹25,000) caps, the new regime deducts only the ₹50,000 standard deduction, and a 4% health and education cess is added to the slab tax.

Tax slab (annual income)	Rate
Old regime: up to ₹2,50,000	Nil
Old regime: ₹2,50,001 – ₹5,00,000	5%
Old regime: ₹5,00,001 – ₹10,00,000	20%
Old regime: above ₹10,00,000	30%
New regime: up to ₹3,00,000	Nil
New regime: ₹3,00,001 – ₹6,00,000	5%
New regime: ₹6,00,001 – ₹9,00,000	10%
New regime: above ₹9,00,000	15% – 30%

Gross salary	Tax (old regime)	Tax (new regime)	Monthly TDS (old)
₹5,00,000	₹0	₹0	₹0
₹7,50,000	₹28,600	₹0	₹2,383
₹10,00,000	₹80,600	₹54,600	₹6,717
₹12,50,000	₹1,40,400	₹93,600	₹11,700
₹15,00,000	₹2,18,400	₹1,45,600	₹18,200
₹20,00,000	₹3,74,400	₹2,96,400	₹31,200

Sample figures assume exempt income of ₹0, cap 80C at ₹1,50,000 and 80D at ₹25,000, and add 4% cess. Rebate rules below ₹7,00,000 (new regime) can make low salaries tax-free.

Common use cases

Estimate take-home: see how much tax is deducted before a job offer looks useful.
Compare regimes: decide whether the old regime's deductions beat the new regime's lower slabs.
Plan 80C and 80D: work out how extra contributions cut your tax.
Check employer TDS: verify that your monthly deduction matches a rough estimate.

Pro tips

Compare before choosing: run the same income under both regimes and pick the lower tax.
Use the full 80C and 80D limit: these are capped, so maximise them only if it truly lowers your tax.
The effective rate matters more: your true tax share is usually below your top slab.
Treat this as an estimate: surcharge and exact annual rules can change the figure.

TDS Calculator FAQ

What is TDS on salary?

TDS is income tax your employer deducts from monthly salary and deposits with the government, based on your estimated annual income.

How does an employer calculate TDS?

Your employer projects annual income, subtracts deductions like 80C and 80D, works out the tax, then deducts one-twelfth monthly.

Old vs new regime — which is better?

It depends. The old allows 80C, 80D and HRA; the new has lower slabs but few deductions. Compare both to pick the lower tax.

Can I claim 80C under the new regime?

No. Most common deductions, including 80C and 80D, are not allowed, so only a standard deduction applies.

What is the standard deduction?

A flat deduction salaried employees claim from salary income, lowering taxable income without supporting documents. It changes annually.

Is TDS the same as income tax?

No. TDS is tax collected in advance from your salary and credited against your total tax, settled when you file.

What deductions reduce TDS?

The standard deduction, 80C (PF, ELSS, insurance), 80D (health cover), HRA and home-loan interest. More deductions mean less tax.

What if too much TDS is deducted?

You can claim a refund when you file, provided your actual tax for the year is lower than the TDS already deducted.

What are the income tax slabs?

Slabs differ by regime and change yearly. This tool illustrates FY 2023-24 rates, 5-30% in the old regime and 0-30% in the new.

Do I need to file if TDS is deducted?

Yes, if your income crosses the exemption limit, you want a refund, or you have extra income. TDS is not a substitute for filing.

Is this calculator accurate?

It is a close estimate from simplified slabs, cess and rebate. Surcharge and exact rules can change the figure, so verify before reporting.