TDS on Salary — How Much Tax Is Deducted Monthly?
Calculate TDS deducted from your monthly salary by employer. Understand how investment declarations reduce TDS and increase take-home pay.
TDS (Tax Deducted at Source) on salary is your employer estimated monthly tax deduction based on your declared income and investments. If you declare Rs 1.5 lakh in 80C investments your employer reduces TDS proportionally across remaining months. Late or missing declarations mean higher TDS upfront which you reclaim as refund when filing ITR.
Calculate Now
Income Tax Calculator (India FY 2025-26)
Key Information
| Parameter | Details |
|---|---|
| TDS Calculation | Estimated annual tax / 12 months |
| Investment Declaration | Reduces TDS through the year |
| Missing Declaration | Higher TDS refundable at ITR filing |
| Form 16 | Employer issues by June 15 |
Calculate TDS on salary
Get accurate results instantly — 100% free, no signup required
Use Calculator NowFrequently Asked Questions
How to reduce TDS from salary?
Submit investment declarations to your employer at the start of the financial year: 80C investments (Rs 1.5L) health insurance premium (80D) NPS contribution (80CCD1B) HRA rent receipts and home loan details. Each declaration reduces your estimated tax and therefore monthly TDS giving you more cash in hand each month.
What happens if too much TDS is deducted?
If actual tax liability is less than TDS deducted you get a refund when filing ITR. CRA processes refunds within 20-45 days of filing. The refund includes interest at 0.5% per month from April 1 of the assessment year. To avoid excess TDS submit investment proofs to your employer by January.
How to check TDS deducted?
Check Form 26AS on the Income Tax e-filing portal. It shows all TDS deducted by your employer and other deductors. Your employer issues Form 16 by June 15 which is the detailed TDS certificate. Both should match — if they do not contact your employer HR or payroll team immediately.
Related Calculators
Last updated: March 2026