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November 7, 2013

WHAT IS THE TDS LIMIT ON SALARY

QUESTION:
Hi ,
An employee is drawing Rs. 10000 pm, is it possible to cut the TDS. Help me and tell me something.


ANSWER:
First of all please understand that TDS on salary is deducted on Slab rates i.e. your income from Salary will be estimated for whole year and tax will be deducted on Slab applicable to you. This tax will then be averaged for each month and the average tax will be the amount to be deducted.

In your case the employee is earning salary of Rs. 120000 , since the Income is less than the current exempted slab i.e. Rs. 200000, there would be no tax thus no TDS.


So no need of deducting tax on the salary

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