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TDS on salary calculator (monthly, FY 2026-27)

Employers deduct TDS each month so that the year's tax is collected evenly. This calculator projects the year from what has been paid so far and the current monthly salary, then spreads the remaining tax over the months left.

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Tax for the year
₹1,11,540
On taxable salary ₹15,15,000
Still to deduct
₹62,790
Over 6 months
TDS per month
₹10,465
Deposit by the 7th of next month
How each number is worked out
  • Projected salary = ₹7,50,000 paid so far + ₹1,40,000 × 6 months left = ₹15,90,000.
  • Taxable = ₹15,90,000 − ₹75,000 standard deduction + ₹0 other income declared = ₹15,15,000.
  • Tax (new regime, section 202): slab tax ₹1,07,250, plus 4% cess = ₹1,11,540.
  • Monthly TDS = (₹1,11,540 − ₹48,750 already deducted) ÷ 6 = ₹10,465.

Average-rate method of section 392(1), Income-tax Act, 2025 (earlier section 192), tax year 2026-27. Later months may be adjusted for any shortfall or excess (section 392(5)(c)). Surcharge on income above ₹50 lakh, special-rate income (such as capital gains) and non-resident rules are not included.

Short answer

Monthly TDS = (estimated tax for the year − TDS already deducted) ÷ months remaining. The estimate is salary paid so far plus current monthly salary × months left, less the standard deduction (₹75,000 new, ₹50,000 old) and, for the old regime, the claims in Form No. 124. Tax follows section 202 or the old slabs, the section 156 rebate and 4% cess. This is the average-rate method of section 392(1).

Worked example: increment mid-year

Kiran: ₹1,25,000 a month April to September (₹7,50,000 paid, TDS ₹48,750). From October, ₹1,40,000 a month; 6 months left; new regime.

StepWorkingAmount
Projected salary₹7,50,000 + ₹1,40,000 × 6₹15,90,000
Taxable− ₹75,000₹15,15,000
Tax with cess₹1,07,250 + ₹4,290₹1,11,540
Balance₹1,11,540 − ₹48,750₹62,790
Monthly TDS₹62,790 ÷ 6₹10,465

Using it for payroll

  • Re-run whenever salary, bonus or declarations change.
  • Include a known bonus in "salary paid so far" when paid, or add it to the estimate in advance.
  • For a new joiner, include salary and TDS from the previous employer if declared.

FundRaksha HR does this for every employee on every payroll run. See TDS on salary for the rules.

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FAQ

Questions, answered

Estimate the year's taxable salary, compute the tax under the chosen regime, subtract TDS already deducted and divide by the remaining months.

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This page is general information for Indian businesses, not legal advice for your specific case. Laws, rates and procedures change; speak to an advocate before acting. FundRaksha LegalTech Pvt Ltd is a technology company; legal work is carried out by enrolled advocates.