TDS on Salary Slab — Monthly Deduction by Salary Range (FY 2025-26)

Updated: 3 June 2026 | Section 192 | New Regime (Default) | Standard Deduction ₹75,000

Under Section 192, employers deduct TDS on salary based on projected annual income. From FY 2023-24, the new tax regime is the default — unless the employee submits Form 12BB opting for old regime. New regime standard deduction: ₹75,000 (FY 2025-26). Below ₹7.75 lakh annual salary (₹64,583/month), no TDS under the new regime (tax rebate under Section 87A covers up to ₹7 lakh, plus ₹75K standard deduction). Submit Form 12BB with investment proofs to reduce TDS.

₹75K

Standard deduction for salaried employees under new regime (FY 2025-26).
Annual income up to ₹7,75,000 = zero tax (₹7L after 87A rebate + ₹75K standard deduction). Employer must deduct zero TDS for salary ≤ ₹64,583/month under new regime.

New Tax Regime Slabs — FY 2025-26 (AY 2026-27)

Annual Taxable Income	Tax Rate
Up to ₹4,00,000	Nil
₹4,00,001 – ₹8,00,000	5%
₹8,00,001 – ₹12,00,000	10%
₹12,00,001 – ₹16,00,000	15%
₹16,00,001 – ₹20,00,000	20%
₹20,00,001 – ₹24,00,000	25%
Above ₹24,00,000	30%

Plus: 4% Health & Education Cess on tax. Surcharge for income > ₹50 lakh. Section 87A rebate: Full tax rebate up to ₹60,000 for income ≤ ₹12 lakh (new regime).

Monthly TDS by Salary Range — Quick Reference (New Regime)

Monthly Gross Salary	Annual CTC (approx.)	Annual Taxable Income*	Annual Tax	Monthly TDS
₹40,000	₹4.8 L	₹4.05 L	₹275	₹0 (87A rebate)
₹60,000	₹7.2 L	₹6.45 L	₹12,250	₹0 (87A rebate)
₹80,000	₹9.6 L	₹8.85 L	₹42,500	~₹3,500
₹1,00,000	₹12 L	₹11.25 L	₹82,500	~₹6,900
₹1,50,000	₹18 L	₹17.25 L	₹2,18,750	~₹18,200
₹2,00,000	₹24 L	₹23.25 L	₹3,76,250	~₹31,350
₹3,00,000	₹36 L	₹35.25 L	₹6,97,500	~₹58,100

*Taxable income = Annual CTC − Standard Deduction ₹75,000 − EPF employee share (assumed 12% of basic, basic ~40% of CTC). Figures are approximate. Cess included. Actual TDS depends on exact salary structure.

New Regime vs Old Regime — TDS Comparison

Monthly CTC	New Regime TDS/mo	Old Regime TDS/mo (with ₹1.5L 80C + HRA)	Savings (Old Regime)
₹60,000	₹0	₹0	—
₹80,000	~₹3,500	~₹800	~₹2,700/mo
₹1,00,000	~₹6,900	~₹2,500	~₹4,400/mo
₹1,50,000	~₹18,200	~₹6,500	~₹11,700/mo
₹2,00,000	~₹31,350	~₹13,000	~₹18,350/mo
₹3,00,000	~₹58,100	~₹27,000	~₹31,100/mo

Old regime assumes: 80C ₹1.5L, HRA 40% of basic, standard deduction ₹50,000. Actual tax depends on exact deductions. Use the TaxClue calculator for precise figures.

How TDS on Salary is Calculated — Step by Step

Annualize Salary
Multiply monthly salary by 12 (or use actual projected annual CTC if variable components exist). Include all taxable components: basic, DA, special allowance, bonus, etc.
Deduct Standard Deduction
Subtract standard deduction: ₹75,000 (new regime FY 2025-26) or ₹50,000 (old regime). This is automatic — no Form 12BB needed for standard deduction.
Apply Regime-Specific Deductions (Old Regime Only)
If employee opted old regime via Form 12BB: Subtract HRA exemption (Section 10(13A)), Section 80C (up to ₹1.5L), Section 80D (medical insurance), home loan interest (Section 24), LTA exemption, etc.
Calculate Tax on Taxable Income
Apply tax slab rates to the net taxable income. Add 4% cess on tax. Check if Section 87A rebate applies (income ≤ ₹7L new regime or ≤ ₹5L old regime).
Divide by 12 — Monthly TDS
Divide annual tax by 12 to get monthly TDS deduction. Employer may adjust TDS in later months if salary changes, bonuses are paid, or employee submits updated Form 12BB.

Form 12BB — How to Reduce TDS by Declaring Investments

Submit Form 12BB at the start of April each year with estimated investment declarations. Update it with actual proofs by January (for Q3 adjustments). Key declarations: PPF/ELSS/LIC deposits (80C), health insurance premium (80D), rent receipts (HRA), home loan interest certificate (Section 24), and the regime choice (old vs new). Employers who receive Form 12BB will reduce TDS accordingly. Not submitting = TDS calculated without any deductions = higher monthly TDS (recoverable via ITR refund).

Frequently Asked Questions

Can I change my tax regime (old to new or new to old) after TDS is already deducted?

Yes. Salaried employees can change their tax regime once per year while filing their ITR (Income Tax Return) — not by submitting Form 12BB to the employer again in the same year. So if your employer deducted TDS under the new regime (default from FY 2023-24) but you want old regime benefits (HRA, 80C deductions), you can switch to old regime when filing ITR. The system will recalculate your tax under old regime. If tax under old regime is lower, you get a refund for the excess TDS deducted. If old regime tax is higher than TDS deducted, you pay the balance as self-assessment tax before filing.

What if my employer refuses to apply old regime deductions even when I submit Form 12BB?

From FY 2023-24, the employer defaults to the new regime unless the employee specifically opts for old regime via a written declaration (typically called Form 12BB or a regime selection form). If you submit the declaration and the employer still deducts TDS under new regime: (1) Keep proof of your submission (email, acknowledgement). (2) File your ITR under old regime — the IT department processes returns based on your declared regime, not your employer's deduction method. (3) Any excess TDS deducted will be refunded. (4) You can complain to the employer's HR/finance, but legally, the correction route is through your ITR. Note: Employers with ≥ 10 employees have an obligation to accommodate regime choice.

What happens if my employer does not give me Form 16?

Form 16 is mandatory for all employers who deduct TDS on salary. If your employer does not give Form 16: (1) Download Form 26AS from the IT portal (incometax.gov.in → AIS/26AS) — it shows TDS deducted by employer with TAN and amount. (2) Use AIS (Annual Information Statement) for comprehensive income and TDS data. (3) File ITR using these details — salary income and TDS can be pre-filled from Form 26AS/AIS. (4) If TDS was deducted but not deposited (employer default), you can still claim TDS credit in ITR — the IT department can recover the amount from the defaulting employer. (5) Report the employer to the jurisdictional TDS AO for non-compliance.

Is TDS deducted on gross salary or net take-home salary?

TDS under Section 192 is calculated on estimated annual taxable salary — NOT on gross CTC or net take-home. The calculation: Start with Annual CTC → Subtract exempt allowances (HRA exempt portion, LTA, standard deduction ₹75,000 for FY 2025-26 under new regime) → Apply Section 80C/80D deductions (if old regime and Form 12BB submitted) → Get taxable income → Apply tax slab → Divide annual tax by 12 = monthly TDS. So TDS is based on taxable income, which is less than gross pay. Your actual take-home = Gross pay − PF employee contribution − Professional tax − TDS.

What is Form 12BB and when should I submit it to my employer?

Form 12BB is a declaration form submitted by the employee to the employer at the beginning of each financial year (April) to declare: (1) HRA claim — landlord name, address, PAN, rent amount. (2) Leave Travel Allowance (LTA) claim. (3) Section 80C investments (PPF, ELSS, home loan principal, insurance premiums, NSC, etc.). (4) Home loan interest deduction (Section 24). (5) Old vs New regime choice. The employer uses this to calculate estimated annual tax and deduct correct monthly TDS. If you don't submit Form 12BB, the employer deducts TDS assuming no deductions (new regime or full slab without any 80C benefit). At year-end (December/January), re-submit actual proofs to adjust TDS for remaining months.

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