FY 2025–26 · AY 2026–27 · Section 192

TDS on Salary (192)

Enter your annual salary and regime to see the income tax your employer estimates and the monthly TDS deducted from your pay.

Category
Income Tax & TDS
Takes about
2 min
Updated
Sep 2026
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Full breakdown below ↓
🗓️ Basic details
Financial year
Tax regime (what you declare to your employer)
Age group (affects old-regime exemption)
💼 Annual salary
Annual salary Gross CTC, before deductions
Other income declared FD, savings, dividends (optional)
📉 Deductions declared Old regime
80C PPF, ELSS, LIC, EPF — max ₹1.5L
80D Health insurance — up to ₹50k
80CCD(1B) NPS Extra — max ₹50k
Home loan interest Sec 24(b) — max ₹2L
HRA exemption Sec 10(13A)
Standard deduction (₹75,000 new / ₹50,000 old) is applied automatically. The new regime ignores the deductions above — switch to the old regime to declare them to your employer.

How your monthly TDS is worked out

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Disclaimer: Indicative estimate of annual tax and monthly TDS for a salaried resident individual. Actual TDS may vary with mid-year joins, arrears, perquisites and declarations. Rates per Finance Act 2025.

TDS on salary under Section 192

Every employer must deduct income tax at source (TDS) from your salary under Section 192 of the Income-tax Act. There is no fixed TDS rate for salary — the employer estimates your full-year tax liability on your projected annual income and then spreads it evenly, deducting roughly one-twelfth (annual tax ÷ 12) every month.

÷ 12
Annual tax is divided across the months of the year and deducted monthly
Sec 192
Governs TDS on salary — deducted at the "average rate" of income tax
Form 24Q
Quarterly TDS return the employer files for salary deductions
Form 16
Annual TDS certificate your employer issues you by 15 June

How the employer computes your TDS

Section 192 requires TDS at the "average rate of income tax" — that is, the total tax on your estimated annual income, divided by the number of months. Here is the four-step process your payroll team follows each year.

Step 1

Estimate annual salary

Project your gross salary for the full financial year, including allowances and any other income you declare.

Step 2

Apply your regime

Apply the standard deduction and — in the old regime — the 80C, 80D, HRA and home-loan deductions you declare.

Step 3

Compute annual tax

Apply the slab rates, the 87A rebate, surcharge and 4% cess to arrive at your total tax for the year.

Step 4

Divide by 12

The annual tax is split across the remaining months and deducted from each month's pay as TDS.

New vs old regime — the declaration matters

At the start of the year your employer asks which regime you choose. The new regime is the default — with the ₹75,000 standard deduction and the raised 87A rebate, salary up to ₹12.75 lakh has zero annual tax and therefore zero monthly TDS. If you pick the old regime, declare your 80C / 80D / HRA / home-loan investments so your TDS is lowered — undeclared investments mean higher TDS all year, refunded only after you file your ITR.

Standard deduction

A flat deduction from salary — ₹75,000 in the new regime and ₹50,000 in the old regime for FY 2026-27. It applies automatically before TDS is computed.

Section 87A rebate

Makes annual tax — and hence TDS — nil for taxable income up to ₹12L in the new regime and up to ₹5L in the old regime.

Form 24Q

The employer files this quarterly TDS return for salary payments, detailing each employee's salary and TDS deducted under Section 192.

Form 16

Your annual TDS certificate, issued by the employer by 15 June, summarising your salary, deductions and total TDS — used to file your ITR.

Questions people ask

Short answers on TDS on Salary (192). Tap a question to open it.

01How is TDS on salary computed?

The employer estimates your total salary for the year, allows the standard deduction and any exemptions and deductions you have declared, computes the tax under the applicable regime, and divides it across the remaining months of the year.

02Which regime does the employer use?

The new regime by default. If you want the old regime, you must tell the employer at the start of the year, and confirm it when filing your return.

03Can I ask my employer to consider other income?

Yes. You may report other income — such as interest or rent — and TDS suffered on it, and the employer will take it into account. The employer cannot reduce the salary TDS below zero because of a loss, except for a loss from house property.

04What happens if I change jobs mid-year?

Give the new employer details of the previous salary in Form 12B so that TDS is computed on the combined income. Otherwise each employer allows the exemption limit separately and you end up with tax payable at filing.

05What if too much tax is deducted?

It appears in Form 16 and 26AS and is claimed as credit in your return, with the excess refunded. Submitting your declarations and proofs on time is the way to avoid the cash-flow cost.

Disclaimer: This tool gives indicative results for general guidance only and is not professional advice. Please verify with a qualified CA before acting on the numbers.