Transitioning to HR: How Do I Calculate and Deduct TDS for Employees Year-Round?

Dear All,

I am a finance person and am going to take over the HR activities. Kindly let me know how to calculate employees' TDS amount at the beginning of the year itself (Apr to Mar). From which month should we deduct TDS from their salary? Should we get the declaration from each employee from the beginning itself?

Regards,
Thiyagu

Dear,

We should take the declaration in April itself, and after that, we should start deducting from April onwards. However, for those whose deduction is very less, it can be deducted in later months.

Thank you.
J.S. Malik

Dear Mr. G. Thiyagarajan,

Yes, definitely, you can ask for the declaration from each employee. Also, you can calculate the annual tax liability of the employee based on the average annual salary. Finally, you can calculate the final tax after a certain time frame when all the details pertaining to their salary issues are finalized.

Hi,

You can ask the employees about it by circulating the attached format for submitting the savings details. You can start deducting the TDS according to their declaration in the form, and by the end of the year, they need to show the supporting documents for it. If they are unable to do so, that amount will be taxable for them.