TDS on Salary Calculator India — Monthly TDS Estimate FY 2026-27

Last updated: 29 April 2026 Reviewed by Arjun Mehta, CA

**TDS on salary** is deducted by employers under Section 192 of the Income Tax Act. The employer estimates your total annual income (salary + other declared income), deducts eligible deductions (under the tax regime chosen), computes the annual tax, divides by 12, and deducts that amount monthly. This calculator replicates this calculation for FY 2026-27.

Monthly Basic + DA (₹)

Other Allowances per Month (₹) HRA, special allowance, etc.

Annual Gross Income —

Annual Tax (New Regime) —

Monthly TDS Deduction —

Net Monthly In-Hand —

View Year-by-Year Breakdown

Real-World Examples — 2026

₹1 lakh/month salary — TDS calculation

For ₹1 lakh/month gross salary (₹12 lakh annual), new regime tax after ₹75,000 standard deduction is on ₹11.25 lakh = ₹86,250. Monthly TDS = ₹7,188. Net in-hand ≈ ₹92,812/month.

₹2 lakh/month salary — 30% bracket

₹2 lakh/month (₹24 lakh annual) under new regime: tax on ₹23.25 lakh ≈ ₹4,32,500. Monthly TDS = ₹36,042. Net in-hand ≈ ₹1,63,958 before other deductions like PF, professional tax.

Frequently Asked Questions

How is TDS on salary calculated in India?

Your employer calculates expected annual income, applies applicable deductions (based on your investment declaration), computes annual tax under the selected regime, and divides by 12 to arrive at monthly TDS. The employer adjusts TDS in later months if actual investments differ.

What is Form 16 and why is it important?

Form 16 is the TDS certificate issued by employers annually by 15 June. It contains salary details (Part A from TRACES) and salary computation with deductions (Part B). It's the key document for filing your ITR and serves as proof of TDS payment.

Can I reduce TDS on salary?

Yes. Submit Form 12BB to your employer with investment declarations — PPF, ELSS, LIC premiums (80C), health insurance (80D), HRA details, home loan interest. The employer reduces TDS accordingly. Declare accurately — under-declaration leads to underpaid TDS.

Is the TDS on Salary Calculator free?

Yes, the TDS on Salary Calculator on CalcPhi is completely free with no registration required.

Are my inputs stored?

No. All calculations run in your browser. We do not store any financial data.

Can I use the TDS on Salary Calculator on mobile?

Yes. CalcPhi is fully mobile-optimised and works on all modern smartphones.