TDS Calculator

TDS on Salary — How Section 192 Works

TDS on salary is governed by Section 192. Unlike TDS on other income types which use flat rates, salary TDS is computed based on the estimated annual income and applicable slab rate. Your employer projects your full-year income at the start of the year, applies deductions you've declared (rent receipts, investment proofs), and deducts proportional TDS from each monthly salary.

This is why your take-home pay changes when you submit investment declarations in February or March. The employer recalculates the remaining TDS needed for the year and adjusts. If you haven't submitted proofs by the deadline, your employer deducts higher TDS assuming no exemptions — and you claim a refund when filing your ITR.

Common TDS Sections at a Glance

Form 16 — What It Contains and Why It Matters

Form 16 is the TDS certificate issued by your employer, typically in June for the just-completed financial year. It has two parts. Part A is the TDS deducted and deposited with the government — this is auto-populated from employer's TDS return (Form 24Q) and is available on the TRACES portal. Part B is a detailed salary breakup: gross salary, allowances, perquisites, deductions claimed, and net taxable income.

When filing your ITR, Part B of Form 16 is your primary reference for salary income. Cross-check it against your actual salary slips — errors in Part B are not uncommon, especially if you changed employers mid-year or had variable pay components. Your Form 26AS (annual tax statement) and AIS (Annual Information Statement) on the IT portal show all TDS credits — use these to verify that TDS deducted by all parties matches what's been deposited.

TDS and Advance Tax — Avoiding Dual Payment

Salaried individuals whose TDS fully covers their tax liability need not pay advance tax. But if you have income beyond salary — bank interest, rental income, freelance fees, capital gains — TDS on those may not be sufficient to cover the full tax liability.

The connection: advance tax obligations are calculated after crediting all TDS already deducted. If your total tax liability is ₹1.5 lakh and TDS already deducted from salary is ₹1.1 lakh, your net advance tax obligation is ₹40,000. Missing advance tax installments triggers interest under Section 234B and 234C.

If you're claiming FD interest from multiple banks, each bank deducts 10% TDS. But if you're in the 30% bracket, you still owe an additional 20% slab rate on that interest. This additional liability must be settled through advance tax.

Claiming TDS Refund

Excess TDS is refunded by the Income Tax Department after you file your ITR and it's processed. The typical timeline is 3–6 months from ITR filing for clean, uncontested returns. Refunds are credited directly to your pre-validated bank account.

Track your refund status on the Income Tax e-filing portal or via the NSDL refund tracking link. If the refund hasn't arrived within 6 months and your ITR is processed, you can raise a grievance on the portal or call the CPC Bangalore helpline.

Pre-validate your bank account on the IT portal before filing. Refunds to accounts that aren't pre-validated fail silently and take months to reroute. This is the most common reason for refund delays among first-time filers.