Confused About TDS Deduction on My Salary: Is This Normal or a Mistake? How Should I Address It?

Dear Seniors, I am an employee in a private limited firm and draw a total annual salary of $36,000. When I recently checked my employee portal, it reflected the total TDS to be deducted as $67,000.

Monthly Salary Structure

- Basic: $15,000
- HRA: $6,000
- Medical Reimbursement: $1,250
- Special Allowance: $6,950
- Transport Allowance: $800
- Deduction of Professional Tax: $200

Total Monthly Salary: $30,000
Net in-hand salary: $29,800

Now, the employer has started deducting the TDS from the month of June ($1,000) and July ($2,000) against the total TDS to be deducted.

I would like to know if this is genuine, and if not, what would be the proper approach to get this resolved.

Sorry, there was a typo in my query. My annual gross salary is $360,000, not $36,000.

Thanks

Your total tax comes out to be around 8,000 for the year 1 April 2014 - 31 March 2015. So, ideally, the monthly tax (TDS) that they should deduct is about Rs. 670.

Complete Take-Home Calculation

Here is the complete take-home calculation for you with taxes and other details:

- Take home India: 29.30 Thousand
- CTC: 3.68 Lakh
- Year: 2014 - AM22 Salary Calculator India

Ways to Save Tax

You can save this tax as well if you can do the following:

- Invest Rs. 150,000 more to take full advantage of tax-free investment to lower your taxes. You can reduce your yearly tax by Rs. 8,094 if you can invest 150,000 more in tax-saving investments. This will increase your monthly in-hand salary by Rs. 735.

- Pay monthly home rent of up to Rs. 7,500 and reduce your yearly tax by Rs. 7,416. It will also increase your monthly in-hand by Rs. 618.

- If you can provide yearly medical bills of Rs. 15,000, you can save tax up to Rs. 1,545 and increase your monthly in-hand by Rs. 140.

Let me know if you need more information.

Please note that the CTC that the link shows is 368,000 instead of 360,000. This is because the calculator considers Gratuity as well. In your case, gratuity is not applicable, so you can simply ignore the extra 8k. It does not make any difference to your monthly take-home salary.