Struggling with TDS Deductions on Salary? Seeking Guidance from Experienced HRs

Dear Seniors, Greetings! I am Amit Kumar Rajput, working in an IT company as an HR Executive. I am not well aware of TDS deduction on salaries. Can anyone help me?

Regards, Amit

My name is Amit Kumar Rajput, and I work in an IT company as an HR Executive. I am not well-versed in TDS deductions on salaries. Could anyone help me understand the criteria for TDS deduction if an employee is earning 3 lakhs per annum?

Regards,
Amit

Subject: TDS

1. ₹2 lakh exempted.
2. ₹2 to ₹5 lakh: Rate of Income Tax = 10% + 3% Education cess on Tax Amount.
3. ₹5 to ₹10 lakh: 20% + 3% Education cess on Tax Amount.
4. Above ₹10 lakh: 30% + 3% Education cess on Tax Amount.

Over and above ₹2 lakh, a few deductions are permissible such as PF contribution, PTax, LIC premium, home loan interest, conveyance allowance, etc.

Regards,
SD Patil

TDS on Salary is to be deducted by the employer when there is taxable income. When the salary exceeds the Basic exemption limit (Rs. 2,00,000 for FY 2012-13) as per the Income Tax Act, the income becomes taxable. However, while calculating the taxable income, necessary deductions (maximum of Rs. 100,000) have to be taken into consideration from Total Income, such as:

- Insurance Premium
- EPF contribution by Employee or PPF contribution
- Interest on Education loan
- 5 years Tax saving Fixed Deposits/National Savings certificate
- Housing loan principal repaid, etc.

Employers must obtain proofs for these savings/investments.

Regards,
Karthik

Hi, I also want to know what the procedure is for TDS return filing and when an employee can apply for it.

Regards,
Amit