In this help topic, you will learn how to configure TDS, calculate TDS, and generate STI report and Form 16. TDS on salary is mandatory for all employees earning taxable income.

You have to deduct TDS on salary based on the estimated income-tax computed. Compute the estimated annual income of the employee first. Then other income or losses are deducted along with allowed deductions declared by the employee, and income tax is computed on the estimated annual taxable income. The estimated annual income tax is then divided by the number of months applicable, and TDS is deducted every month from salary. You have to remit the TDS on salary with the Government Treasury.

Calculate TDS in excel payroll application

To calculate TDS:

  1. Click on TDS menu and Select TDS calculation in the sub-menu.
  2. In the screen that opens, select Financial year & employee.
  3. Select Old or New regime

select TDS calculation in excel payroll

Click on List.

TDS calculation displays various information mainly, Salary details, Deductions u/s 16 & Chapter VI-A deductions.

Salary Details

Click on Salary details to view the Salary Component details of the employee.

Salary component details screen in excel payroll software

Salary details in TDS screen of excel payroll

Chapter VI-A Deductions

Click Chapter VI-A deductions button to display calculated deductions under Chapter VI-A.

Chapter VI-A deductions in excel payroll

TDS Calculation and generate STI reports in excel payroll


Click on Email to email TDS reports to employees.

TDS report through email in excel apyroll

STI Report

Click on the STI report, to generate State of Income Report

Generate STI reports in excel payroll solutions

STI report in excel payroll solutions

Form 16 Export

Click on Form 16 Export button to generate Form 16 Report.

Click on form 16 to generate report in excel payroll

Form 16 report in excel payroll solution

TDS Schedule

Divide Tax payable as 12 equal divisions and allot in each month. Depending on the Payroll settings, TDS will reflect in the Monthly Salary.

TDS schedule screen in excel payroll solutions

TDS scheduled details in TDS calculation screen