Understanding TDS Slab Rates: Can Someone Explain with a Detailed Example?

Hi, I want to know about the TDS calculation. Could anyone explain the TDS slab rates with a detailed example?

Understanding TDS: Tax Deducted at Source

TDS means Tax Deducted at Source when payment is made on taxable sources. For example, rent paid, salary paid, and professional services all constitute taxable income in the hands of the recipient, but only if it exceeds the taxable limit. Rent received above Rs. 1,80,000/- in a year is considered taxable income. Therefore, we need to deduct TDS at a rate of 10% on the rent paid before it is disbursed to the building owner. If the rent paid is below Rs. 1,80,000/-, no TDS needs to be deducted.

Please find the attached chart for your kind attention. For any clarifications, please feel free to reach out with your specific queries.

Regards,
C. Renuka

Understanding TDS on Rental Income

Any income from taxable sources is subject to tax deductions and must be paid to the IT department. If you own a house and receive rent above the slab mentioned in the chart, you are required to deduct TDS. TDS on rental income is a vast topic. Please let us know your income from business or employment, rental income, rent paid, spouse income, business from other sources, etc. It would be beneficial to contact a nearby chartered or cost accountant to get a professional opinion. This could help you save more.

With Regards,
C. Renuka

Salary TDS Calculation Example

Please see the below Salary TDS Calculation:

CTC Structure

- Basic: 29,167.00
- HRA: 11,667.00
- Con: 800.00
- Medical: 1,250.00
- Food Coupons: 1,250.00
- Special Allowance: 10,499.00
- PF: 3,500.00
- PT: 200.00
Total: 58,333.00

TDS Calculation

- Total: 655,596
- Less HRA under three conditions whichever is least: 140,004
- Total: 515,592
- Less: Tax on Employee: 2,400
- Total: 513,192
- Less: Interest on Housing Loan: 40,000
- Total: 473,192
- Less: Deductions Under Chapter VI-A
- Provident Fund: 42,000
- Life Insurance: 5,000
- Housing Loan Principal: 7,500
- NSC VIII Issue: 2,500
- Tuition Fee: 12,500
- Public Provident Fund: 5,000
- Fixed Deposit: 10,000
- ULIP: 15,500
Total: 100,000
- Total: 373,192
- Up to 190,000: Nil
- 190,000 to 500,000: 10% of 183,192
- Tax on Salary Income: 18,319
- Add: Education Cess: 366
- Total Tax: 18,685
- Tax Per Month: 1,557

For this employee, the monthly tax is Rs. 1,557. If you have any doubts, please email me at [Email Removed For Privacy Reasons].

Regards,
V.V.N. Suresh
Manager-Payroll

Hi, I have the slab rates table for last year and the current year as well. I can forward it to you by tomorrow.

Regards, Suresh

Dear Sir, regarding the TDS on salary, we deducted all the loans. Does this mean the budget loan taken from the bank will also be deducted? Is that correct?

Thank you.

You are informed that housing loan deductions are also made from your salary for TDS. Therefore, I would like to clarify if this deduction applies only to housing loans or if it includes all types of loans for TDS purposes?

Thank you.