How does an employer calculate monthly TDS on salary?

The employer projects your annual gross salary, subtracts eligible exemptions (like HRA, Standard Deduction) and declared deductions (Section 80C, 80D), computes the annual tax liability, and divides it by 12 to deduct TDS monthly.

Form 12BB is the declaration of investment proofs and tax exemptions (HRA, home loan interest, 80C, 80D) that an employee must submit to their employer to adjust monthly TDS deductions.

What happens if I do not submit investment proofs on time?

If proofs are not submitted by the employer's deadline, they will stop considering the declarations and deduct higher TDS in the final months of the FY. You can still claim these deductions and request a refund when filing your ITR.

Salary TDS CalculatorFY 2026-27

Estimate your monthly TDS deduction based on annual salary, tax regime, and declared investments for FY 2026-27.

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Quick Summary: Salary TDS Calculator

In FY 2026-27, your employer calculates TDS by projecting your annual income and subtracting eligible exemptions like HRA and standard deduction (₹75k). If you are in the New Regime, TDS is significantly lower due to wider tax slabs. This tool helps you verify if your employer is deducting the correct amount to avoid a huge tax bill or a large refund during ITR filing.

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Regulatory Disclaimer · FY 2026-27

Last verified May 2026

Statutory Disclosure

Nature:Calculator platform and is NOT a SEBI-registered Investment Adviser. All calculations are indicative.

Risk:"Investments in securities market are subject to market risks. Read all related documents carefully before investing."

Consult a SEBI-registered IA or CA for personalised advice.

9 out of 10 traders in F&O incurred net losses (SEBI 2023). Tax estimates based on IT Act 2025. Trezoriq is not liable for financial decisions based on results.