CTC is a hypothetical figure and it has nothing to be done with the salary drawn. The TDS is deducted on the total salary drawn (to be drawn during the year) at the rate applicable to the individuals in different slabs (10%, 20% and 30% of the taxable income plus surcharge as applicable). The total tax payable is divided in 12 convenient installments so that the tax is deducted in easy installments, during the year.
Rates are as under:
A. Individuals and HUFs
I. In case of individual (other than II and III below) and HUF:-
Income Level / Slabs Income Tax Rate
i. Where the total income does not exceed Rs.1,60,000/-. NIL
ii. Where the total income exceeds Rs.1,60,000/- but does not exceed Rs.3,00,000/-. 10% of amount by which the total income exceeds Rs. 1,60,000/-
iii. Where the total income exceeds Rs.3,00,000/- but does not exceed Rs.5,00,000/-. Rs. 14,000/- + 20% of the amount by which the total income exceeds Rs.3,00,000/-.
iv. Where the total income exceeds Rs.5,00,000/-. Rs. 54,000/- + 30% of the amount by which the total income exceeds Rs.5,00,000/-.
II. In case of individual being a woman resident in India and below the age of 65 years at any time during the previous year:-
Income Level / Slabs Income Tax Rate
i. Where the total income does not exceed Rs.1,90,000/-. NIL
ii. Where total income exceeds Rs.1,90,000/- but does not exceed Rs.3,00,000/-. 10% of the amount by which the total income exceeds Rs.1,90,000/-.
iii. Where the total income exceeds Rs.3,00,000/- but does not exceed Rs.5,00,000/-. Rs. 11,000- + 20% of the amount by which the total income exceeds Rs.3,00,000/-.
iv. Where the total income exceeds Rs.5,00,000/- Rs.51,000/- + 30% of the amount by which the total income exceeds Rs.5,00,000/-.
III. In case of an individual resident who is of the age of 65 years or more at any time during the previous year:-
Income Level / Slabs Income Tax Rate
i. Where the total income does not exceed Rs.2,40,000/-. NIL
ii. Where the total income exceeds Rs.2,40,000/- but does not exceed Rs.3,00,000/- 10% of the amount by which the total income exceeds Rs.2,40,000/-.
iii. Where the total income exceeds Rs.3,00,000/- but does not exceed Rs.5,00,000/-. Rs.6,000/- + 20% of the amount by which the total income exceeds Rs.3,00,000/-.
iv. Where the total income exceeds Rs.5,00,000/- Rs.46,000/- + 30% of the amount by which the total income exceeds Rs.5,00,000/-.
Surcharge: The surcharge on Income Tax for Individuals for total income exceeding Rs.10 lacs stands removed.
Education Cess: 3% of the Income-tax.