Understanding TDS: How Is It Deducted from Your Salary and Why?

naina080989@gmail.com
Hi,

Can you please explain regarding TDS? How is that deducted and on what basis from an employee's salary?

Regards,
Naina
jeevarathnam
Hi Naina,

To deduct the TDS, first, you have to understand the IT Slabs. Income Tax is exempted up to ₹2,50,000, and any employee earning between ₹2,50,000 to ₹5,00,000 is taxed at 10%. Income between ₹5,00,000 to ₹10,00,000 is taxed at 20%, while income above ₹10,00,000 is taxed at 30%.

There are various calculations involved such as HRA Exemption, Medical Allowance, Conveyance Allowance, Housing Loans, Savings, etc. Without knowing these, you can't deduct tax. Generally, the finance team handles these calculations.

Thank you.
nariy@rediffmail.com
Hi Naina,

Click the link below, which I have posted: https://www.citehr.com/559948-tds-em...-salaries.html

Regards,
Narayan
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