Difference Between TDS and Income Tax
For calculating income tax, we know the income tax slab for different salaries (like ₹0-₹250,000: No tax, ₹250,001-₹500,000: 10%, etc.). However, in corporate (IT/ITES) companies, monthly TDS is deducted from the employee's salary. Here, I want to know if the slab rate for TDS deductions is calculated based on CTC/NET salary.
From India
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For calculating income tax, we know the income tax slab for different salaries (like ₹0-₹250,000: No tax, ₹250,001-₹500,000: 10%, etc.). However, in corporate (IT/ITES) companies, monthly TDS is deducted from the employee's salary. Here, I want to know if the slab rate for TDS deductions is calculated based on CTC/NET salary.
From India
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TDS is Tax Deduction at Source. Income Tax is calculated based on your projected income, and the tax is deducted every month from your salary, then deposited with the tax authorities. If there is an excess or shortfall in Income Tax, the same can be claimed or the shortfall paid while filing your income tax returns every year.
Pon
From India, Lucknow
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616Pon
From India, Lucknow
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Agree with Pon. Further, IT is calculated on total projected earnings during a financial year. It has nothing to do with Net pay or CTC. As a thumb rule, all the items on the earning side of your payslip are considered to calculate the Total Earnings, from which various investments as per your declarations (like u/s 80C, 80D, etc.) are deducted to arrive at Taxable Earnings.
From India, Mumbai
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From India, Mumbai
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SALARY CALCULATOR & INCOME TAX.zip
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