What is TDS on salary?
TDS on salary is income tax that your employer deducts from your pay each month and deposits with the government on your behalf, under Section 192 of the income-tax law. It is not a separate tax; it is your own annual income tax, collected in advance. The employer projects your full year's taxable salary, computes the tax under the regime you have chosen, and deducts roughly one-twelfth every month, adjusting whenever something changes: a raise, a bonus, a new declaration. The deducted amounts appear on your payslip's TDS line, reach the government against your PAN, and are certified to you after year-end in Form 16, which is what you file your return with.
Why the TDS amount moves during the year
Because it is a projection, not a rate. A bonus adds to the projected year and the extra tax spreads over the remaining months; investment proofs verified in January tighten the deductions; a mid-year joiner's prior income arrives via Form 12B and recomputes everything. March is when the projection must land on reality, which is why year-end payslips sometimes carry a true-up.
Old regime, new regime, and whose choice it is
The employee chooses the regime for deduction through the declaration process (the new regime is the default absent a choice), and can still choose differently at return filing. The payroll election governs the monthly deduction; the return settles the year. Check current slabs for both regimes at incometaxindia.gov.in; they are Finance-Act-driven and not printed here by design.
Is TDS the same as income tax?
It is your income tax, paid in instalments through the employer. If too much was deducted you get a refund at filing; too little, you pay the balance with interest. The Form 26AS/AIS statement against your PAN is where you verify that every deducted rupee actually reached the government.
Go deeper: TDS calculation guide · Form 16 explained · Take-home calculator
Projections that land, every March.
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