TDS on Salary Calculator

Tax Deducted at Source on salary (TDS) is the income tax automatically deducted by employers from your monthly salary through a process called salary withholding. This ensures advance payment of tax throughout the financial year rather than a lump-sum payment at year-end. Employers calculate TDS using tax tables prescribed by the Income Tax Department, taking into account your salary structure, age, HRA exemptions, and specified deductions you claim. The TDS on salary is determined using Form 12BB or declarations you submit to your employer, informing them about expected deductions and exemptions applicable to you. Under the new regime, TDS is calculated on salary after standard deduction of 75000 rupees, while the old regime allows deductions for investments and insurance. Understanding your TDS helps ensure you're not overpaying through excessive deductions or underpaying leading to year-end tax liability. This calculator breaks down exactly how salary TDS is computed, helping you verify employer calculations and estimate year-end tax position.