Understanding TDS Deductions: How Should They Be Applied to a 34000 CTC Salary?

Dear All,

Please let me know on what basis TDS has to be deducted when the employee's salary structure is as follows:
Basic: 15000/-
HRA: 7500/-
Travel Allowance: 800/-
Medical Allowance: 625/-
Special Allowance: 6075
Total Gross Salary: 30000/-
Mobile Allowance: 500/-
Internet Allowance: 500/-
Local Conveyance: 3000
Total CTC: 34000/-

How should deductions be made based on this scale? Please guide me.

To calculate TDS on a salary scale of 34000 Total CTC, you need to consider the components of the salary structure. Here's a simple guide to deduct TDS accurately:

1. Determine the taxable income: Subtract exemptions like HRA, LTA, medical allowances, and other deductions from the gross salary to arrive at the taxable income.
2. Calculate TDS: Use the income tax slabs applicable for the financial year to compute the TDS amount. Ensure you consider the special allowances and other taxable components.
3. Deduct TDS: Deduct the calculated TDS amount from the employee's salary each month as per the Income Tax Act provisions.
4. Provide Form 16: Issue Form 16 to the employee at the end of the financial year, detailing the TDS deducted and salary paid.

For specific details on TDS calculation and tax slabs, refer to the Income Tax Act of India or consult with a tax expert for precise guidance.