Understanding TDS Deductions: How Do They Work for HR Freshers?

Hi all,

I am a fresher in HR and I need to know how TDS is deducted and how much.

Thanks

Hi,

If you are talking about TDS on Salaries, you must have a record of salaries of all the staff members from which you will project the salaries for the whole financial year (if the current level of salary is maintained). Then calculate the IT as per the Tax Slabs for FY 2008-09. The Tax so calculated should be deducted proportionately each month from April to March and deposited online before the 7th of the next month for the deduction of the current month i.e. TDS on salary for the month of October-08 shall be deposited by 07.11.08.

Please advise the concerned staff members to give a declaration regarding the investments for the financial year. Take due consideration into account; otherwise, the tax will be deducted assuming no investment made. Therefore, you must do the following:

1. At the beginning of the financial year, collect the declaration from each employee in a suitable format.
2. Follow up with the employee to receive the evidence against the investments made. You may counsel them in this regard or help them.
3. From June onwards, insist employees to handover the details of the investments.
4. In case employees leave the company, release the salary only after the settlement of all taxes and dues and only against the actual evidence received.
5. Ensure that the receipts are proper receipts. In the present scenario, employees present the receipt of the Application for the investment e.g. For a mutual fund application but insist on them to handover the actual receipt of the payment made. The deductions under 80 C are available in respect of Payments only, and we must ensure that the element of payment is important, and hence the receipt shall be against the payment only.
6. In the suspectable cases where the employee intends to leave the company, discuss comfortably with the employee and settle the taxes at an early stage.

Regards,

Anurag Jain

Dear Mr. Anurag,

It would be great if you could send me the Declaration format (what exactly needs to be mentioned). Actually, our company has not been deducting any TDS for the last two years. Therefore, we need to do that urgently. If you could provide me with your contact number, it would be a great help to me.

Thanks & Regards,
Vineet

Hi all,

I am a fresher in HR and need to know how TDS is deducted and how much?

It would be better if you buy the concerned book. However, the general slab is as follows:
- Up to 150,000.00 per annum: Nil deduction
- 1.5 L to 3 L: 10%
- 3 L to 5 L: 20%
- 5 L to 10 L: 30%
- 10 L and above: 30% + surcharge

Please note that the deduction slabs for senior citizens and females differ. There are some investment benefits and others provided.

Thanks

Dear All,

Please find the attached Declaration form that needs to be filled.

Regards,
Dhanesh