Salary TDS Projection Calculator

⚡ In shortYour employer does not wait until March to deduct your tax — it estimates your whole year's liability up front and deducts roughly one-twelfth of it from each month's salary as TDS under section 192.

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How it is calculated

The employer projects your annual salary, subtracts the standard deduction (₹75,000 under the new regime) and any declared deductions, computes the tax on the balance, and then spreads that tax evenly across the remaining months of the financial year. This calculator does the same: from your monthly gross, any expected bonus, the months left in the year and the TDS already deducted, it works out the annual tax under the new regime (AY 2026-27, where income up to ₹12 lakh is effectively tax-free via the §87A rebate), the balance still to be recovered, and the TDS that should come out of each remaining month. If you have been under-deducted so far — for example because you declared investments you did not make — the balance is squeezed into fewer months, which is why a big TDS jump often appears in February and March.

Your employer is estimating, not calculating

TDS on salary under section 192 is deducted on a projection of your full-year liability, spread across the remaining months of the year. It is an estimate built from your declared investments, your expected salary and the regime you selected. When any of those change, the deduction changes — and because the correction has to fit into the months that remain, a late change produces a large adjustment rather than a small one.

Why February and March take-home falls

This is the most common payroll surprise and it has a simple cause. Investment declarations made in April are provisional; proofs are collected around January. Anything declared but not evidenced is removed from the computation, and the resulting shortfall is recovered across the final months. Submitting proofs by the stated deadline, and declaring only what you will actually invest, keeps the year smooth.

Tell payroll about your other income, or pay advance tax

Your employer cannot see interest, dividends, rent, freelance receipts or capital gains, so nothing is deducted on them. You may report that income to your employer under section 192(2B) so it is folded into the TDS computation, or you may pay advance tax yourself in cumulative instalments. Doing neither leaves the liability to surface at filing along with interest under sections 234B and 234C.

A mid-year job change usually creates a shortfall

Each employer computes as though it were your only one, applying the basic exemption and deductions afresh. Two part-year computations therefore under-deduct against your combined income. Reporting your previous salary to the new employer in Form 12B lets them compute correctly on the total; without it, the gap appears as a demand at filing. This is the single most common reason a salaried taxpayer owes tax despite full TDS.

Reconcile through the year, not at the end

Check that the TDS shown in your payslips is appearing in Form 26AS each quarter. Deducted-but-not-deposited is a real problem, and only the employer can correct it by revising the TDS return — a conversation that is far easier while you are still employed there. At year end, twelve payslips should agree with Form 16, and Form 16 with 26AS. The take-home salary calculator shows how the deduction lands each month.

Frequently asked questions

Why did my TDS suddenly jump in February?

Usually because the employer recomputed your tax after your proof submission. If you declared investments in April but did not submit proof, the deduction is withdrawn and the shortfall is recovered from the last one or two months' salary.

Can I ask my employer to deduct less TDS?

You can submit accurate investment declarations and proofs, and report any loss from house property, so the projection drops. You cannot simply ask for a lower deduction — section 192 obliges the employer to deduct the correct estimated tax.

Does TDS mean my tax is fully paid?

Not always. TDS only covers the income your employer knows about. If you have interest, capital gains, rent or freelance income, you may still owe advance tax or a balance at filing.

What if too much TDS was deducted?

You claim the excess back as a refund when you file your ITR. Check the TDS credited against you in Form 26AS and the AIS before filing.