Understanding TDS Calculation and Process: Insights on Salary Deductions and Tax Implications

Dear All,

Could anyone tell me what the process and terms & conditions are in TDS? Also, what is the division of CTC and the different types of salary?

Regards,
Vikas

I hope the attachment might help you to calculate TDS.

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I hope the attachment might help you calculate TDS.

Dear JEEVARATHNAM,

Thank you for providing me with the suitable information. Could you please share some details regarding the limits and conditions for the partitioning of TDS? This will help me to understand the process more comprehensively.

Thank you.

Dear Querist,

I assume your query is only on TDS on Salaries. (Do you know TDS is also on various other payments made by your organization like interest, rent, professional fees, payment to contractors and sub-contractors, transports, commission, etc.)

It is not only about how to calculate, but also how to pay and how to file returns of TDS. You may be able to calculate with the help of the given link in normal cases, but please appreciate that there are different types of issues. For example, someone joins in between and wants you to include his previous employer's salary in the return or someone has some capital gains or other income/house property/ties, and so on.

If you are uninitiated in these subjects, you will end up on the wrong side of the law. It is better to consult your tax consultants/auditors, understand the fundamentals, or hire someone who knows.

A S Bhat

Hi Vikas,

As much as I am aware about the TDS deductions, you need to first maintain the wage sheet accordingly. Then you will be able to have proper criteria for the TDS deductions as per the slabs decided by the government. Basically, this also includes the gross income after the deductions and the taxable income.

Thank you.