TDS Calculator - Calculate Monthly TDS on Salary

TDS (Tax Deducted at Source) on salary is income tax deducted directly by your employer from your monthly salary before crediting it to your account. Under Section 192 of the Income Tax Act, employers must estimate your annual tax liability at the beginning of the year based on your investment declarations (Form 12BB) and deduct 1/12th of total tax each month. You can view TDS details in Form 26AS or AIS on the income tax portal. Use the free TDS Calculator on AbacusHand to calculate your exact result instantly.

Your employer calculates your projected annual income, subtracts declared deductions (80C, HRA, home loan interest, etc.), applies the applicable tax slabs, and divides by 12 for monthly TDS. Under the new regime for FY 2025-26, a ₹15 lakh income after ₹75,000 standard deduction (₹14.25 lakh taxable) attracts approximately ₹1.4 lakh annual tax (₹11,700/month TDS). Submit Form 12BB at year start to reduce TDS. Use the free TDS Calculator on AbacusHand to calculate your exact result instantly.

On a ₹10 lakh annual salary under the new tax regime FY 2025-26: taxable income after ₹75,000 standard deduction = ₹9.25 lakh. Tax: nil up to ₹3L, 5% on ₹3-7L = ₹20,000, 10% on ₹7-9.25L = ₹22,500. Total tax approximately ₹42,500 + 4% cess = ₹44,200 (₹3,683/month TDS). Under old regime with ₹2L deductions, tax may be similar. Use the free TDS Calculator on AbacusHand to calculate your exact result instantly.

If excess TDS is deducted (e.g., you forgot to declare investments to employer), you can claim a refund by filing your Income Tax Return (ITR) before July 31 of the assessment year. The refund is processed by the Income Tax Department usually within 30-90 days of ITR filing. For example, if ₹50,000 was deducted as TDS but your actual tax liability is ₹30,000, you get ₹20,000 refunded directly to your bank. Use the free TDS Calculator on AbacusHand to calculate your exact result instantly.

Form 16 is the TDS certificate issued by your employer by June 15 each year. It has two parts: Part A shows employer details, PAN, and TDS deposited (downloadable from TRACES portal), and Part B shows salary breakup, deductions claimed, and tax computation. Form 16 is essential for filing your ITR — it summarizes all TDS deducted from salary during FY 2025-26. If you change jobs, you receive Form 16 from each employer separately. Use the free TDS Calculator on AbacusHand to calculate your exact result instantly.