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TDS Calculator (Both Regimes)
Enter gross salary, select regime, add deductions. Both Old and New regime taxes calculate side by side. Shows annual tax, monthly TDS, and which regime saves more.
TDS on Salary Calculator Free Excel Template FY 2025-26
Enter gross salary and deductions. Get the exact monthly TDS under Section 192. Compares Old vs New regime with updated Budget 2025 slabs. Team view for 25 employees. No tax knowledge needed.
- FY 2025-26 slabs with the new Rs.12 lakh zero-tax threshold under New Regime
- Old vs New regime comparison with 80C, 80D, HRA, and home loan deductions
- Team view for 25 employees with total monthly TDS liability
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Petpooja presents
TDS on Salary Calculator
For Indian Employers
5
Sheets · Excel template
FY 2025-26
What's Inside
Everything you need for accurate TDS calculation.
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Team View (25 Employees)
Quick monthly TDS for up to 25 employees under New Regime. Enter salary, see taxable income, rebate, cess, and monthly TDS. Total liability at the bottom.
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Quick Reference Guide
Both regime's slab tables, deduction limits (80C, 80D, HRA, 24b), TDS deposit deadlines, Form 24Q due dates, and Form 16 timeline. All on one sheet.
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Worked Example
Step-by-step for an Rs.9,00,000 salary: New Regime = zero tax (Rs.8,25,000 taxable, full rebate). Old Regime = Rs.49,400 tax with 80C and 80D. Clear winner: New Regime.
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Instructions + Legal References
FY 2025-26 slab tables for both regimes, Section 192 obligations, 87A rebate rules, and every relevant section of the Income Tax Act cited.
Why This Matters
Budget 2025 Changed Everything for TDS on Salary
The Union Budget 2025 overhauled the new tax regime for FY 2025-26. If you're still using last year's slabs for TDS calculation, you're deducting the wrong amount from every employee's salary.
Here's what changed. The basic exemption went from Rs.3,00,000 to Rs.4,00,000. The slab structure got a new 25% bracket. And the 87A rebate jumped from Rs.25,000 to Rs.60,000, making income up to Rs.12,00,000 completely tax-free under the new regime. If you need the full salary structure breakdown, that guide covers how each component gets taxed.
For employers, this means re-calculating TDS for every single employee. The new regime is now the default (Section 115BAC), and most employees below Rs.12 lakh will have zero TDS. But employees with heavy 80C and 80D deductions might still save more under the old regime. Understanding gross salary components helps you figure out which regime works better for each person.
It calculates tax under both regimes, tells you which one saves more, and gives you the exact monthly TDS to deduct. Pair it with our CTC calculator to see the complete salary breakup including PF, ESI, and gratuity.
Sample Preview
What the template shows for an Rs.9,00,000 salary.
Here's a preview of what you'll get inside:
New Regime: Rs.9,00,000 gross, Rs.75,000 standard deduction, taxable = Rs.8,25,000. Tax = Rs.22,500 but 87A rebate wipes it to zero. Monthly TDS = Rs.0.
Old Regime: Same salary with Rs.1,50,000 in 80C and Rs.25,000 in 80D. Taxable = Rs.6,75,000. Tax = Rs.47,500 + 4% cess = Rs.49,400. Monthly TDS = Rs.4,117.
Recommendation: Template auto-shows "New Regime (saves Rs.49,400)" in green. Employee keeps Rs.4,117/month more.
Team View: 5 sample employees at Rs.4L to Rs.15L. Only the Rs.15L employee pays TDS (Rs.8,125/month). Everyone else = zero under new regime.
... plus quick reference with both slab tables, deduction limits, and every TDS deadline for FY 2025-26.
Key Stats
Why TDS accuracy matters.
₹12L
Income up to Rs.12,00,000 is now tax-free under the new regime for FY 2025-26 (with 87A rebate of Rs.60,000). With Rs.75,000 standard deduction, gross salary up to Rs.12,75,000 attracts zero TDS.
Source: Finance Act 2025, Section 87A read with Section 115BAC7th
TDS must be deposited by the 7th of the following month. Miss this, and you face interest at 1.5% per month under Section 201(1A). For March salaries, the deadline is 30-Apr.
Source: Income Tax Act, Rule 3015 Jun
Deadline for issuing Form 16 to employees. Every employer deducting TDS under Section 192 must issue this annual certificate. Late issuance attracts a penalty of Rs.100/day under Section 272A(2).
Source: Income Tax Act, Section 203
Common Mistakes
5 TDS Mistakes Indian Employers Make
01
Using last year's tax slabs
Budget 2025 changed the new regime slabs significantly. The basic exemption went from Rs.3L to Rs.4L, a new 25% bracket was added, and the 87A rebate doubled. Using FY 2024-25 slabs means wrong TDS for every employee. Here are the 7 salary questions every Indian must know about these changes.
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Allowing Old Regime deductions under New Regime
Under Section 115BAC (New Regime), only standard deduction (Rs.75,000) and employer NPS contribution (80CCD(2)) are allowed. No 80C, 80D, HRA, or home loan interest. Applying these deductions under New Regime understates TDS.
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Not applying the 87A rebate correctly
Under New Regime for FY 2025-26, the rebate is Rs.60,000 for taxable income up to Rs.12,00,000 (not Rs.25,000 up to Rs.7,00,000, which was FY 2024-25). Getting the threshold wrong means deducting TDS from employees who owe nothing.
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Forgetting the 4% health and education cess
Cess is 4% on income tax (after rebate). It's small but mandatory. Missing it means under-deduction, and the employer is liable for the shortfall under Section 201. Our payroll calculation guide covers this step by step.
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Depositing TDS after the 7th
TDS must reach the government by the 7th of the following month. Late deposit attracts interest at 1.5% per month (or part of month) under Section 201(1A). That adds up fast across multiple employees.
Stop guessing the monthly TDS.
Download the free TDS Calculator and get the exact amount for every employee in 30 seconds.
FAQ
Frequently asked questions.
What are the new tax slabs for FY 2025-26 under the New Regime?
For FY 2025-26 under the New Regime (Section 115BAC): 0-4L nil, 4-8L at 5%, 8-12L at 10%, 12-16L at 15%, 16-20L at 20%, 20-24L at 25%, above 24L at 30%. The basic exemption increased from Rs.3L to Rs.4L, and a new 25% slab was added. Standard deduction is Rs.75,000. With the 87A rebate (Rs.60,000 for income up to Rs.12L), income up to Rs.12,75,000 gross is effectively tax-free. Try our free online TDS calculator for a quick check.
Which regime should my employees choose?
It depends on their deductions. Employees with heavy 80C (Rs.1.5L), 80D (Rs.25-50K), HRA, and home loan interest may save more under Old Regime. But for most employees below Rs.12-15L with moderate deductions, the New Regime is better. Read more about tax-saving salary components to help your team decide.
When must TDS be deposited?
By the 7th of the following month (Rule 30 of the Income Tax Rules). For March salaries, the deadline is 30-Apr. Late deposit attracts interest at 1.5% per month under Section 201(1A). The quarterly TDS return (Form 24Q) is due by 31-Jul, 31-Oct, 31-Jan, and 31-May. Our Form 16 guide explains the annual certificate employers must issue by 15-Jun.
What deductions are allowed under the New Regime?
Very few. Under Section 115BAC, only standard deduction (Rs.75,000), employer NPS contribution under 80CCD(2), and family pension deduction under Section 57(iia) are allowed. 80C, 80D, HRA exemption, home loan interest (Section 24), and most other deductions are NOT available. Even EPF contributions under 80C don't count under the new regime.
Is the New Regime mandatory?
The New Regime is the default since FY 2023-24 (Section 115BAC(1A)). But it's not mandatory. Employees can opt for the Old Regime by informing their employer before the start of the financial year. Salaried employees can switch every year. Use our free in-hand salary calculator to see the impact of regime choice on take-home pay.
About Petpooja
Petpooja is India's leading SME business software suite, trusted by 1,50,000+ businesses across restaurants, retail, healthcare, manufacturing, and more. From billing and payroll to task management and procurement, Petpooja helps Indian businesses run better, every day.
Automate TDS calculation for your entire team
Attendo (formerly Petpooja Payroll) auto-calculates TDS under both regimes, generates CTC-to-net salary breakups, Form 16, and deposits TDS on time. Updated for FY 2025-26.
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