Is My Employer's TDS Deduction Process Correct? Seeking Advice on Salary Split Issues

Hi all, I am working in an organization where I used to receive my salary in two parts, i.e., from two company accounts. My salary is 70k, with one company account giving me 35k and the other deducting my TDS, resulting in 31,500 every month. However, suddenly last month, they deducted 7k as TDS and informed me that they have shown my salary from one company. Is this correct? Please help.

Hi, the employer is liable to deduct TDS on salary at the time of making the payment to the employee. The TDS rate on salary depends on the income you receive from your employer, based on which you fall into different tax slab rates. If the whole salary of 70k is released by a single entity, there are chances of them deducting the equivalent TDS.

Hi Puneet, For specific and accurate advice, you should consult a tax professional or the relevant authorities in your jurisdiction.

It seems like there might be a misunderstanding or a change in the way your organization is processing your salary. Here are a few things to consider:

Tax Deducted at Source (TDS)
TDS is a method of collecting income tax in India. Employers deduct a certain amount from your salary and deposit it with the government on your behalf.

Salary Structure
The way your salary is structured can affect how much TDS is deducted. If your salary is shown as 35k from one company and 35k as TDS, this would imply a total of 70k, which matches your total salary. However, if they have shown 42k from one company and deducted 7k as TDS, this would also result in a net of 35k.

Income Tax Slabs
Depending on your total annual income, you may fall into different tax brackets. This will affect the percentage of TDS that is deducted.

Consult a Tax Professional
It's highly recommended to consult a tax professional who is familiar with the tax laws in your country and can review your specific situation. They will be able to provide accurate advice and guide you on what steps to take.

Communicate with HR or Finance
If you believe there has been a mistake, it's important to communicate with your organization's HR or finance department. They should be able to explain the changes in your salary structure and TDS deductions. The specifics of tax laws can vary by country, and even within regions of a country, hence it's crucial to get advice that's specific to your situation and location.

Thanks