TDS / income tax calculator
Enter your annual gross salary. Deductions below apply only under the old regime.
How TDS on salary is worked out
Your employer estimates your annual tax liability and divides it into twelve monthly deductions. This calculator mirrors that: it applies the standard deduction, then (under the old regime) subtracts eligible deductions such as employee PF up to Rs 1,50,000 and your Section 80C/80D investments, and computes tax on the balance.
The tax engine applies the FY 2026-27 slab rates for the new or old regime, the new-regime rebate, and a 4% health and education cess. It does not model surcharge and supports taxable income up to Rs 50 lakh — the same limits used across AccoNova's calculators.
Sources: Income-tax Act, 1961 (slab rates, Section 87A rebate, Section 16 standard deduction, Chapter VI-A deductions). Verify against your Form 16, salary structure and current rules before filing. This tool is an estimate.
Worked example
Annual gross salary Rs 18,00,000, new regime. Taxable income = 18,00,000 - 75,000 standard deduction = Rs 17,25,000. Tax including 4% cess = Rs 1,50,800. Monthly TDS = Rs 1,50,800 / 12 = about Rs 12,567. Under the old regime, subtract employee PF (up to Rs 1.5 lakh) and 80C/80D deductions first.
Frequently asked questions
How is TDS on salary calculated?
TDS on salary is your estimated annual income-tax liability divided into twelve monthly deductions. The annual liability is computed on taxable salary income after the standard deduction and, under the old regime, eligible deductions such as employee PF and Section 80C/80D investments.
What is the standard deduction for FY 2026-27?
This calculator uses a Rs 75,000 standard deduction under the new regime and Rs 50,000 under the old regime, matching the figures used across AccoNova's calculators. Always confirm the current statutory figure before filing.
Which regime gives lower tax?
It depends on your deductions. The new regime has lower slab rates but allows almost no deductions; the old regime has higher rates but lets you subtract items such as PF, 80C and 80D. Run both in the calculator with your actual figures to compare.
Does this calculator include surcharge and cess?
It includes the 4% health and education cess. It does not model surcharge, and it supports taxable income up to Rs 50 lakh, matching AccoNova's other calculators. Surcharge applies only at higher income levels.
Reading your TDS estimate
Your employer deducts tax on salary through the year and adjusts it as your declarations change. This estimate assumes salary income only and a resident taxpayer. If you have other income, a home loan, or capital gains, the final liability will differ. Under the new regime, deductions are limited, so the slab rate does most of the work. Under the old regime, PF and 80C and 80D investments reduce the taxable figure. Re-run the estimate after you submit your investment proofs, and reconcile it with the Form 16 your employer issues.
Tax on salary: what moves the number
Four things change your monthly tax more than anything else: your total salary, the regime you pick, your investment declarations, and any other income you have. The new regime has lower slab rates but gives almost nothing back, so the standard deduction and the rebate do most of the work for middle incomes. The old regime has higher rates but lets you subtract provident fund, life insurance premiums, medical insurance and home loan interest, so it can win if those amounts are large. Employers deduct tax through the year based on the declarations you file, then true up in the last months. If you switch jobs mid-year, give the new employer your earlier salary and tax figures so the total is right. At year end, compare the estimate here with your Form 16.
Why your deduction changes during the year
Tax on salary is not fixed. It moves. Employers estimate your yearly income at the start. They deduct based on that estimate. When you file your investment proofs, the estimate changes. So the monthly deduction changes too. A bonus or an increment pushes it up. A missed declaration pushes it up as well. If you change jobs, tell the new employer your earlier salary. Otherwise the total may be wrong. Check your payslip each month. A sudden jump usually means a declaration is missing. At year end, the Form 16 shows the final picture. Match it with this estimate. Then file your return with confidence.
About this tool
Written and maintained by the AccoNova editorial and payroll team, and last reviewed on (first published ). This is a free public calculator and an estimate, not a payslip, a tax return or professional advice. Figures depend on your salary structure, exemptions, state rules and current statutes — verify before relying on a result. AccoNova publishes product guidance and educational resources; no independent qualified statutory reviewer is claimed.
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