Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
From gross salary to taxable salary
Salary includes basic pay, allowances, bonus and perquisites. From it you subtract the standard deduction (₹75,000 new / ₹50,000 old) and, in the old regime, exemptions such as HRA and allowances. The result is your taxable salary, which goes into your total income.
Slabs and TDS
Tax is then charged at the slab rates of your chosen regime, after any deductions (old regime) and the Section 87A rebate (residents). Your employer estimates your annual tax and deducts it as monthly TDS under Section 192, which you see in your payslip and Form 16. Confirm current slabs per the Finance Act.
A worked example
Example (new regime): gross salary ₹14 lakh, less ₹75,000 standard deduction = ₹13.25 lakh taxable. Tax is computed on the slabs, and your employer spreads the resulting TDS across 12 months. At year-end you reconcile via your return — claiming any extra deductions or recovering excess TDS. Choosing the right regime with your employer keeps the monthly TDS accurate. Our team can review your structure.