TDS Applicability - CiteHR
Jeevarathnam
Sr. Manager Hr/admin
Shirinara
Founder - Fave Hr Solutions

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Hello, I am working on salary structure of one of my employee whose annual salary is 120000/- Is TDS applicable on this salary? Best Regards, Shirin Ara
Hi For Rs. 1,20,000/- no TDS is applicable. TDS s exempted till 2,50,000
At present up to Rs.250000/- there is no tax., as informed by Mr. Jeevarathnam . But it will vary depends upon the budget proposal of central government every year. As of now it is exempted upto Rs.250000/-.
Moreover, to have better and effective tax free salary payable to the employee the salary structure may be split into Basic, DA , Conveyance allowance , HRA , medical allowances, LTA etc.,
The conveyance allowance up to Rs.19200/- per annum , HRA subject to certain conditions, medical allowance up to Rs.15000/- per annum , LTA subject to certain specified conditions, is exempted in addition to the basic exemption of Rs.250000/-.
It is better to design your salary structure in such a way to avoid tax - (TDS) legally and to help the employee to get more on hand .

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