TDS on Salary Slab — How Much Is Deducted?

Under the new regime for FY 2025-26, no TDS is deducted until your annual taxable income exceeds ₹12 lakh, which after the ₹75,000 standard deduction corresponds to a gross salary of about ₹12.75 lakh (≈ ₹1,06,250/month). Below that, the 87A rebate wipes out the tax. Under the old regime the tax-free threshold is much lower (₹5 lakh taxable), so TDS can start earlier unless you declare HRA and 80C deductions.

Neither. TDS under Section 192 is calculated on estimated annual taxable salary — gross CTC minus exempt allowances (HRA exempt portion, LTA), the standard deduction (₹75,000 new / ₹50,000 old) and any declared old-regime deductions. The result is divided by 12. Your take-home = gross pay − EPF employee share − professional tax − this TDS, so take-home is lower than taxable salary.

Five steps: (1) annualise salary (monthly × 12 or projected CTC); (2) subtract the standard deduction (₹75,000 new / ₹50,000 old); (3) subtract old-regime deductions if you opted for it via Form 12BB (HRA, 80C, 80D, home-loan interest); (4) apply the slab rates and add 4% cess, then apply the 87A rebate; (5) divide the annual tax by the number of remaining months to get monthly TDS. Employers re-estimate mid-year when salary or declarations change.

From FY 2023-24 the new tax regime is the default. Your employer deducts TDS under the new regime unless you specifically opt for the old regime through a written declaration (Form 12BB or a regime-selection form) at the start of the year. Employers with 10 or more employees are expected to accommodate the regime you choose.

Yes. A salaried employee can change the regime once a year while filing the ITR — you are not bound by the regime your employer used for TDS. If your employer deducted under the new regime but old-regime tax (with HRA and 80C) is lower, choose old regime in your ITR and the excess TDS is refunded. If old-regime tax is higher, pay the balance as self-assessment tax before filing.

It can be, if your deductions are large. With ₹1.5 lakh under 80C, HRA and home-loan interest, the old regime can beat the new regime even after its higher slab rates and smaller ₹50,000 standard deduction — typically for people paying significant rent or a home loan. For most others with few deductions, the new regime gives lower TDS. Compare both on your actual numbers before opting.

Keep proof of your Form 12BB submission (email or acknowledgement). The department processes your ITR on the regime and deductions you declare there, not on how your employer deducted TDS — so file under the old regime and claim the refund of excess TDS. You can also raise it with your employer's HR/finance, but the reliable correction route is through your own ITR.

Form 12BB is the employee's declaration to the employer, submitted in April, of the deductions you intend to claim: HRA (with landlord PAN and rent), Section 80C investments, 80D health insurance, home-loan interest under Section 24, LTA and your old-vs-new regime choice. The employer uses it to compute the right monthly TDS. Update it with actual proofs by December/January so Q4 TDS is adjusted; if you skip it, TDS is deducted with no deductions and you recover the excess via an ITR refund.

Form 16 is mandatory wherever salary TDS is deducted, but if you do not receive it: download Form 26AS and AIS from incometax.gov.in (they show the employer TAN and TDS amount), and file your ITR from those — salary and TDS are often pre-filled. If TDS was deducted but not deposited by the employer, you can still claim the credit in your ITR and the department recovers it from the employer. You may also report the employer to the jurisdictional TDS officer.

Salary TDS must be deposited by the 7th of the following month (for March, by 30 April). The employer files a quarterly TDS return in Form 24Q and issues Form 16 (Parts A and B) by 15 June after the year end. Late deposit attracts interest at 1.5% per month under Section 201, and late filing a ₹200/day fee under Section 234E.

If you do not furnish a valid PAN to your employer, TDS under Section 192 is deducted at the higher of the average slab rate or 20% under Section 206AA. Always give your PAN to avoid the flat 20% and to ensure the TDS credit appears against you in Form 26AS. Section 206AB (higher rate for return non-filers) was omitted from 1 April 2025 and in any case did not apply to salary TDS.

Yes. If your employer deducted more TDS than your final tax liability — for example because you declared investments late, switched to the old regime, or had eligible deductions not accounted for — you claim the excess as a refund by filing your ITR. The refund, with interest under Section 244A where applicable, is credited to your bank account after the return is processed.

Yes. Section 192 covers the whole of taxable salary — basic, allowances, bonus, arrears, and the taxable value of perquisites (accommodation, car, ESOPs, etc.). Employers usually deduct extra TDS in the month a bonus or arrears is paid. For arrears, you may claim relief under Section 89(1) by filing Form 10E, which can reduce the tax on amounts relating to earlier years.