Skip to content
ToolBoxGenie

TDS Calculator

Calculators · Added 14 August 2026

Employers deduct tax from salary by projecting your full-year income, computing the liability and spreading it across the remaining payslips. This calculator reproduces that method: enter your monthly salary and what has already been deducted, and it estimates the tax still to come and what that means per month.

Rates checked on 2026-08-14.

Gross monthly salary before deductions.

Tax regime

Interest, rent and similar. Declare it to your employer or pay advance tax.

Ignored — the new regime does not allow these.

From your payslips or Form 26AS.

How many payslips are left to spread the balance over.

How to use the tds calculator

  1. 1Pick the financial year and enter your monthly gross salary.
  2. 2Add any other annual income you have declared to your employer — interest, rent and similar.
  3. 3Choose the regime and enter the deductions you have declared, if the old regime applies.
  4. 4Enter the TDS already deducted this year, from your payslips or Form 26AS, and how many payslips remain.
  5. 5Press Estimate. The result shows the projected annual tax, what is left to deduct, and the monthly figure.

Examples

A full year ahead

Input
₹1,50,000 a month, FY 2025-26, new regime, nothing deducted yet, 12 months remaining
Result
Annual tax ₹1,50,800, so about ₹12,567 a month

This is the figure an employer would arrive at in April for a salary expected to stay flat.

Catching up after a mid-year change

Input
The same salary, but ₹20,000 already deducted and only 6 payslips left
Result
About ₹21,800 a month for the rest of the year

The monthly figure nearly doubles because the same liability is spread over half as many payslips. This is why TDS jumps when a declaration is filed late.

A salary with no TDS at all

Input
₹1,00,000 a month, FY 2025-26, new regime
Result
₹0 — the standard deduction and the 87A rebate between them wipe out the liability

At ₹12,00,000 gross the taxable income falls under the rebate threshold, so there is nothing to deduct. Employers still run the calculation; it simply comes out at zero.

About the tds calculator

How employers actually compute TDS

Section 192 requires an employer to deduct tax on salary at the time of payment, at the average rate applicable to your estimated income for the whole year. In practice that means the payroll team projects your annual salary in April, subtracts the deductions you have declared, computes the tax, and divides it by twelve.

The projection is then revised whenever the facts change. A mid-year increment, a bonus, a declaration submitted or withdrawn — each triggers a recalculation, and the difference between what should have been deducted so far and what actually was is spread across the remaining payslips. This is why TDS is rarely the same figure every month, and why it can rise sharply in the final quarter.

The January-to-March spike is so common it is almost a fixture. It happens when employees declare investments in April, do not produce proof by the January deadline, and have the declared deductions removed from the projection. The full year's extra liability then lands on the last two or three payslips.

Managing it rather than being surprised by it

The main lever an employee has is the timing and accuracy of the declaration. Declaring only what you will genuinely invest, and submitting proof well before the deadline, keeps the monthly deduction smooth and avoids the year-end correction. Over-declaring in April and under-delivering in January is the single most common cause of a painful March payslip.

The second lever is other income. Interest from deposits is taxable whether or not the bank deducted anything, and bank TDS at 10% rarely matches your slab rate. Declaring it to your employer folds it into payroll; not declaring it leaves you responsible for advance tax, with interest if you miss the instalment dates.

It is worth reconciling against Form 26AS at least once mid-year. It shows what has actually been deposited against your PAN, which is not always what your payslip says was deducted. Catching a mismatch in October is a conversation with payroll; catching it in July after filing is a notice.

Frequently asked questions

Why did my TDS suddenly increase?
Almost always because the employer's projection changed. A bonus, a salary revision, an investment declaration you promised in April but did not substantiate by January, or other income you declared mid-year all change the full-year estimate — and the correction is spread across however many payslips are left. Fewer months remaining means a larger monthly adjustment.
Is this the same as my actual tax liability?
It estimates the same underlying liability, but TDS and final tax are not identical in practice. TDS is based on what your employer knows; your final liability accounts for everything, including income and deductions the employer never saw. The difference is settled when you file — either as a refund or as tax payable.
Should I declare other income to my employer?
It is generally the simpler path. Declaring interest or rental income lets the employer deduct the tax through payroll rather than leaving you to pay advance tax in instalments and face interest under sections 234B and 234C if you get the timing wrong. The alternative is legitimate but requires you to manage the schedule yourself.
What are the assumptions here?
A resident individual below 60, salary and other ordinary income only, the slabs for the selected financial year, and a salary that stays flat for the rest of the year. It does not model capital gains, business income, or the higher exemptions available to senior citizens. It also assumes your employer spreads the liability evenly, which is the normal practice but not a legal requirement.
Is this an official determination of my tax?
No. It is an estimate for information. Your Form 16 from the employer and Form 26AS on the income tax portal are the authoritative records of what was actually deducted and deposited against your PAN.

Related tools