TDS on salary calculator — monthly tax deduction, tax year 2026–27
Enter your yearly salary and the tax already deducted to see how much your employer should deduct each remaining month — with the annual tax and the average rate shown.
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Estimate. The method and sources are on this page — check them against your own case before you act.
How it is calculated
Your employer does not deduct a fixed slab amount each month. Under section 392 it estimates your tax for the whole year and spreads it across your salary payments, correcting as it goes.
Monthly TDS = (estimated tax for the year − TDS already deducted) ÷ salary months left · tax = new-regime slabs − section 156 rebate + surcharge + 4% cess
Estimate the year's taxable income
Add salary and any other income you declared to the employer, then subtract the Rs 75,000 standard deduction under section 19.
Work out the year's tax
Apply the new-regime slabs, the section 156 rebate up to Rs 12,00,000 of taxable income, any surcharge, and 4% cess.
Spread what is left
Subtract TDS already deducted and divide the rest by the salary months left. This is how a mid-year raise or a late declaration changes your payslip.
What most pages get wrong
Section 392 replaced section 192 from 1 April 2026
The Income-tax Act, 2025 merged sections 192 to 194T into sections 392 and 393. Salary TDS is section 392; the method is unchanged.
TDS is your year's tax spread out, not a slab per month
Section 392(1) uses the average rate on your estimated salary for the year, so equal months give equal TDS.
Up to Rs 12.75 lakh salary can mean no TDS at all
With the Rs 75,000 standard deduction and the section 156 rebate, new-regime tax on Rs 12,75,000 of salary is nil.
Employers can raise or lower later deductions
Section 392(5)(c) lets the employer adjust remaining months for any excess or shortfall earlier in the year.
Frequently asked questions
Which section covers TDS on salary from tax year 2026–27?+
How does my employer calculate monthly TDS?+
Why did my TDS jump after a salary hike?+
Can I tell my employer about income from another job or interest?+
Is there TDS on a salary of Rs 12 lakh?+
Is the TDS on my payslip my final tax?+
Sources, dates and a changelog.
Every number this calculator uses is either an input you control or a value from the sources below. The formula is compiled and tested at build time, so the page cannot ship with a broken calculation.
Sources
- Income Tax Department — Income-tax Act, 2025, section 392 (TDS on salary at the average rate)
- Income Tax Department — FAQs on computation of tax (section 202 slabs, section 156 rebate, surcharge)
- Income Tax Department — FAQs on interplay and transition (sections 192–194T now sections 392 and 393)
- Checked by hand, not scraped
This page
- Last verified: 30 October 2026
- Next review: 30 April 2027
- Vertical: Salary & Tax
- Build tests: 4 passed
- Changelog: 1 entry
How we handle errors
- Spotted a mistake? Report it — we correct and log it.
- Corrections appear in the changelog below.
- Read the methodology and the disclaimer.