TDS on Salary
What is TDS?
How do you actually define salary?
On what basis is the TDS calculated?
How is TDS calculated?
As per Government rules and policies Tax deductions are allowed under section 80C and section 80 D of the Income Tax Act 1961. This, in turn, allows a person to look for various investment options for a running financial year.
Calculation of TDS on Salary:
The following steps can be taken into consideration to calculate the TDS on your income:
|INCOME TAX SLAB||TDS DEDUCTIONS||TAX PAYABLE|
|Up to Rs 2,50,000||NIL||NIL|
|Rs 2,50,000-Rs 5,00,000||5% of (Rs 5,00,000 to Rs 2,50,000)||Rs 12,500|
|Rs 5,00,000- Rs 6,33,000||20% of(Rs 6,33,000 to 5,00,00)||Rs 26,600|
Hence, the final TDS to be deduced from Sachin’s annual income is Rs 12,500 + Rs 26,600 which comes out to be Rs 39,100 for the current year’s income.
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