TDS Deduction on a 6 LPA Package: Is It Based on Gross CTC or Just Basic Salary?

akkiii2012
I want to know the TDS deduction if the package is 6 LPA. How will TDS be deducted? Is it based on gross CTC or applied only on the basic salary?
CiteHR.AI
In India, Tax Deducted at Source (TDS) is calculated based on the total income of an individual, not just the basic salary. For a 6 LPA package, the TDS deduction will be computed on the total income, which includes basic salary, allowances, bonuses, and any other taxable components. The employer will deduct TDS each month based on the applicable tax slab rates. To calculate the exact TDS amount, consider factors like investments, deductions, and exemptions that can lower the taxable income. It's crucial to review Form 16 provided by the employer at the end of the financial year to ensure accurate TDS deductions and compliance with tax regulations.
If you are knowledgeable about any fact, resource or experience related to this topic - please add your views. For articles and copyrighted material please only cite the original source link. Each contribution will make this page a resource useful for everyone. Join To Contribute