Estimate monthly TDS from salary, annual tax liability, taxable salary, effective tax rate and take-home pay under the new or old tax regime. Built for Indian salaried employees, job switchers and offer-letter comparison.
| Component | Amount |
|---|
Estimates how much tax may be deducted from salary every month based on annual taxable income and remaining salary months.
Works for both new and old tax regime so employees can test whether HRA and deductions reduce TDS enough to choose old regime.
Includes HRA, rent and metro/non-metro inputs for old-regime TDS estimation where rent proofs may reduce taxable salary.
Shows how capped PF or full PF affects monthly cash salary and old-regime 80C planning.
Adds professional tax input for states where employees see this deduction in payslips and salary TDS assumptions.
Explains salary, deductions and TDS concepts that employees later check in Form 16 and ITR filing.
| Salary | Annual Salary | Approx Annual Tax | Approx Monthly TDS |
|---|---|---|---|
| 6 LPA | ₹600,000 | ₹0 | ₹0 |
| 8 LPA | ₹800,000 | ₹0 | ₹0 |
| 10 LPA | ₹1,000,000 | ₹0 | ₹0 |
| 12 LPA | ₹1,200,000 | ₹0 | ₹0 |
| 15 LPA | ₹1,500,000 | ₹97,500 | ₹8,125 |
| 20 LPA | ₹2,000,000 | ₹192,400 | ₹16,033 |
| 30 LPA | ₹3,000,000 | ₹475,800 | ₹39,650 |
| 40 LPA | ₹4,000,000 | ₹787,800 | ₹65,650 |
A salary TDS calculator is useful when you want to know why your payslip shows a tax deduction every month. Many Indian employees understand CTC, gross salary and in-hand salary, but TDS often feels confusing because it is not a flat monthly amount. Your employer estimates your total annual taxable salary, applies the tax regime selected for payroll, reduces eligible deductions and exemptions, calculates annual tax with health and education cess, and then deducts that tax from monthly salary. If your salary, bonus, rent declaration or investment proof changes during the year, your TDS can also change.
This TDS Calculator on Salary India page is built for salaried employees, new joiners, HR teams, payroll researchers, job switchers and anyone comparing an Indian salary offer. It estimates annual income tax, average monthly TDS, net salary after TDS, effective tax rate and taxable income. The calculator also includes practical inputs that matter in real payroll: CTC or gross salary, basic salary percentage, HRA, rent paid, PF mode, employer PF included in CTC, professional tax, deductions under the old regime and number of salary months left in the tax year.
The goal is not to replace your employer payroll system or your income tax return. The goal is to give you a clean estimate before salary is credited, before accepting a job offer, before declaring investments, or before comparing old and new tax regimes. If you enter realistic values from your offer letter or payslip, the estimate can help you understand whether a high TDS deduction is normal, whether your proof submission is important, and how much monthly take-home salary remains after tax.
Salary TDS works on an annual estimate. Suppose your employer expects your taxable salary to be ₹15,00,000 for the year. Payroll does not normally wait until the last month to deduct tax. Instead, it estimates annual tax and deducts it across the salary months. If your annual tax estimate is ₹1,09,200 under a particular regime, a simple average would be around ₹9,100 per month. In real payroll, the amount can be adjusted if bonus, arrears, joining date, previous employer income or investment proofs change.
The employer usually starts with salary income. Depending on company structure, this can include basic salary, dearness allowance if applicable, HRA, special allowance, bonus, taxable reimbursements, perquisites and variable pay. Some items shown in CTC are not paid monthly, such as employer PF, gratuity, insurance or stock benefits. That is why a CTC number is not always the same as taxable monthly salary. A good TDS calculator should help separate the package into components rather than simply divide CTC by twelve.
After salary income is estimated, the employer applies deductions based on the tax regime. Under the new regime, the structure is simpler and most common old-regime deductions such as HRA exemption, 80C and 80D are generally not used. Under the old regime, employees can claim HRA, 80C, NPS, health insurance, home loan interest and other deductions if they are eligible and submit proof. The employer then calculates tax slab-wise, adds cess and deducts the balance as TDS.
The tax regime selection is one of the biggest reasons two employees with the same salary can have different TDS. The new regime generally offers lower slab rates and a higher rebate threshold, but it restricts many common deductions. The old regime has higher slab rates after a point but allows a wider set of deductions and exemptions. This means the new regime may be better for employees with few deductions, while the old regime may still be useful for employees with high rent, strong HRA exemption, Section 80C investments, NPS, health insurance or home loan interest.
For many salaried employees in 2026, the new regime is the first option to test because it is the default framework and its slabs are friendly for regular salary income. However, blindly choosing it can be a mistake if you live in a high-rent city and have a strong salary structure. For example, an employee in Mumbai, Bangalore, Delhi or Gurgaon with a large HRA component and actual rent may reduce taxable income significantly under the old regime. Another employee with the same CTC but no rent and no investments may get a better result under the new regime.
The calculator therefore keeps both choices visible. Select the new regime to estimate a simplified monthly TDS. Select the old regime to activate HRA, 80C, NPS, insurance and home loan planning. When creating content for a salary calculator site, this comparison is important because users search for practical questions, not only tax theory: how much TDS on 12 LPA salary, how much TDS on 15 LPA salary, why my monthly TDS is high, and whether old regime reduces salary TDS.
Basic salary matters because it affects PF, HRA and sometimes gratuity. A salary structure with basic at 50% of CTC will behave differently from a structure with basic at 40%. If PF is calculated on full basic, a higher basic increases employee PF deduction and may reduce monthly take-home. Under the old regime, employee PF can also contribute to the 80C deduction limit, which may reduce taxable income if there is space left in the cap. Under the new regime, this tax benefit is usually not available in the same way.
HRA is another important component. HRA is paid as part of salary, but HRA exemption is a tax benefit mainly under the old regime. The exemption commonly depends on actual HRA received, rent paid minus 10% of basic salary and 50% or 40% of salary depending on city classification. This is why two employees with the same salary can have different taxable income if one pays rent and the other lives in their own house. The calculator asks for monthly rent and metro selection to estimate HRA exemption for old-regime planning.
Professional tax is small but still relevant. It is deducted by certain states from salary and can also affect taxable salary assumptions. Maharashtra, Karnataka, West Bengal and some other states have professional tax systems, while many states do not. The calculator includes a professional tax input so users can set ₹0, ₹200 monthly, ₹2,400 annual, ₹2,500 annual or any custom amount according to their payslip.
Bonus and variable pay are common reasons TDS surprises employees. A performance bonus may be part of CTC but paid only once or twice a year. When it is paid, payroll may recalculate annual tax and deduct extra TDS in that month. If you plan monthly expenses based only on annual CTC, the bonus month and non-bonus months can look very different.
Start with the salary number you want to evaluate. If you have an offer letter, use annual CTC and then decide whether employer PF is included. If you have a payslip, use annual gross salary because it is closer to payroll tax calculation. Enter the basic salary percentage from your salary structure. If you do not know the value, 40% to 50% is a common planning range.
Next, choose PF mode. Capped PF is useful when the employer calculates employee PF on the statutory wage ceiling approach. Full PF is useful when payroll deducts 12% of the full basic salary. No PF is useful for employees who do not have PF deduction or where the user wants to isolate income tax only. This choice changes in-hand salary and can change old-regime deduction planning.
Then choose tax regime. For new regime, keep deductions simple and focus on taxable salary after standard deduction and eligible limited items. For old regime, enter rent, HRA, 80C, NPS, health insurance, home loan interest and other eligible deductions only if they are real and documentable. Payroll teams generally ask for investment declarations early and proofs later. If proofs are not submitted or accepted, TDS can rise in the last quarter.
Finally, set the number of remaining payroll months. If you are estimating from April, use 12. If you joined in September, you may have 7 or fewer salary months left in the tax year. When remaining months are fewer, monthly TDS can be higher because the same annual tax is recovered over fewer months. New joiners should also include previous employer income and previous TDS to avoid a tax shock later.
At 8 LPA, many employees mainly worry about PF, professional tax and monthly take-home. Under the new regime, regular taxable salary may be covered by rebate after standard deduction in many simple cases. That means TDS can be zero or low, but employee PF and professional tax can still reduce bank credit. If the same 8 LPA includes variable pay or employer PF, the monthly fixed amount may be lower than expected.
At 12 LPA, the new regime becomes very important because many salaried employees want to know whether salary up to the practical threshold creates zero regular tax. If gross salary is near ₹12.75 lakh and the standard deduction brings taxable income to ₹12 lakh, the regular tax may be eliminated by rebate, subject to eligibility and special-income rules. However, if bonus, taxable perquisites or other income push taxable income above the threshold, TDS can start quickly.
At 15 LPA, monthly TDS becomes visible. The employee should compare both regimes. If there is no meaningful HRA or deduction, the new regime may show lower tax. If there is high rent and strong old-regime deductions, the old regime might reduce taxable income enough to compete. This is a common salary level where employees begin to take investment declarations seriously.
At 30 LPA, income tax is usually the biggest deduction from salary. The new regime may still be convenient and often competitive, but employees should review bonus, stock benefits, NPS employer contribution, HRA, home loan interest and professional tax. A senior employee should not judge a package only by CTC. Fixed pay, variable pay, RSUs, tax withholding and monthly cash flow all matter.
No online TDS calculator can exactly match every company payslip because payroll systems use company-specific rules. Your employer may include taxable perquisites, food coupons, car lease benefits, leave encashment, arrears, incentives, relocation support, retention bonus or insurance recoveries. Some benefits are taxable, some are exempt within limits, and some are only CTC components. These details can change the actual TDS calculation.
Previous employer income is another major difference. If you switch jobs during the year and do not share Form 12B or previous salary details, the new employer may calculate TDS only on current-company salary. Later, when total income is combined in the ITR, you may face extra tax. If you do share previous salary details, the new employer may deduct higher monthly TDS to cover total annual liability. Both outcomes can surprise employees who only look at one company payslip.
Proof submission timing also matters. Many companies accept declarations early in the year and ask for final proofs around December, January or February. If rent receipts, landlord PAN, investment proofs or insurance premium receipts are missing, payroll may reverse earlier benefits and deduct additional TDS. This is why TDS often rises in the last quarter. The calculator can estimate both optimistic and conservative cases by changing deduction inputs.
Before submitting your tax declaration, collect your rent details, landlord information, 80C investments, EPF amount, NPS contribution, health insurance premium, home loan interest certificate, education loan interest and any other eligible documents. Do not enter deductions simply to reduce monthly TDS if you cannot provide proof later. Temporary low TDS can become high TDS in February or March.
Check your offer letter carefully. Identify fixed CTC, variable pay, employer PF, gratuity, insurance, stock compensation and joining bonus. If a large part of CTC is not monthly fixed salary, your TDS and in-hand salary will not match a simple CTC calculator. Salary TDS planning works best when fixed salary and variable salary are separated.
Review Form 16 and AIS when the year ends. Form 16 should show salary, deductions and TDS from the employer. AIS or the relevant tax statement should reflect tax credits. If TDS is higher than final tax, you may claim refund while filing ITR. If TDS is lower, you may need to pay self-assessment tax. A calculator helps planning, but the final return is what settles the tax position.