Short answer
TDS on salary is income tax the employer deducts from pay each month, based on an estimate of the employee’s tax for the year, and deposits with the government.
In AdviHR
AdviHR projects tax each month for the employee’s regime, adds cess and surcharge with marginal relief, and produces the Form 138 file for quarters 1 to 3.
The one the employee elects with the employer. The old regime allows deductions such as 80C and HRA; the new regime does not.
Form 138, from 1 April 2026 under the Income-tax Act 2025.
How sure are we? These figures use the same rules AdviHR payroll applies. We publish what has been checked against an official source and what has not, on the statutory accuracy page.
General information, not legal or tax advice. Confirm against the official notification and your adviser.