Confused About TDS Deductions and Slabs? Need Clarity for Reporting to My Boss

I wanted to know if the employer will deduct the TDS amount and pay it to the government, or if the employee will directly pay it to the government. I also want to know about the slabs, as different sites are providing different information.

Please help me understand the details regarding TDS as soon as possible. I need to report this to my head.

Thanks in advance.

Regards,
Avanthi

As per the Income Tax Act, the employer has to deduct TDS and pay it to the government. Based on the tax slabs, we may not be in a position to deduct tax. Various calculations for income tax include HRA exemption, medical allowance, conveyance allowance, and savings under different provisions.

Thank you.

The meaning of TDS is Tax Deducted at Source. Therefore, the employer has to deduct tax and pay it to the government, as well as file timely returns for the same. For details on income tax, please visit incometaxindia.gov.in.

Regards,
Preetam Deshpande

Thank you for the valuable information. For what company size will TDS be calculated? Our company has 20 employees. Is TDS applicable if an employee's compensation exceeds the slabs?

Thank you in advance.

Regards,
Avanthi

TDS is applicable for all companies irrespective of their size. If any employee falls under a tax bracket, it is the organization's responsibility to deduct TDS and pay it to the Income Tax department.

Thank you.

TDS is applicable for all companies. Another important point is that as per the newly introduced section 206AA, if PAN is not submitted, TDS will be deducted at a flat rate of 30.9%.

Feel free to email me at [Email Removed For Privacy Reasons], and I will share the tax slabs.

Regards,
Narayan

Employer's Duty in TDS Deduction

It's the duty of your employer to deduct TDS in eligible cases and deposit it within the time frame.

Calculation of TDS

Regarding the calculation of TDS, first, the expected investments and savings (projections) of the employees have to be obtained, including Housing Loan and Education Loan (Interest Paid) whose Principal and Interest are exemptible under IT up to a certain extent.

So, deduct the savings and investments from the projected annual salary, and finally, deduct the TDS at the applicable rates.

Hi, please find the attachment. I hope it will clear your doubts.

Thanks & Regards,
Manikandan.S