Question 1

How is TDS calculated on salary?

Accepted Answer

TDS on salary is calculated by your employer based on your expected annual income, claimed deductions, and chosen tax regime. The annual tax is divided by 12 and deducted monthly.

Question 2

What is the TDS rate on salary?

Accepted Answer

There is no flat TDS rate on salary. TDS is calculated based on income tax slab rates applicable to your total estimated annual income after deductions.

Question 3

When is TDS deducted?

Accepted Answer

TDS on salary is deducted every month by your employer before crediting your salary. The employer deposits this with the government by the 7th of the next month.

Question 4

Can I claim TDS refund?

Accepted Answer

Yes, if excess TDS has been deducted (e.g., you have additional deductions or your actual income is lower), you can claim a refund by filing your Income Tax Return.

Question 5

What is Form 16?

Accepted Answer

Form 16 is a TDS certificate issued by your employer showing the total salary paid and TDS deducted during the financial year. It is essential for filing your ITR.

Question 6

How to reduce TDS on salary?

Accepted Answer

Submit your investment declarations to your employer at the start of the year — 80C investments, rent receipts for HRA, home loan details, etc. This reduces TDS deduction.

Question 7

Is TDS applicable on bonus?

Accepted Answer

Yes, TDS is applicable on bonuses, incentives, and all salary components. These are clubbed with your annual salary for TDS calculation.

Question 8

What if employer deducts more TDS?

Accepted Answer

You can claim the excess as a refund when filing your ITR. The refund is processed within 20-45 days of ITR processing.

TDS Calculator on Salary 2025-26

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