TDS, or Tax Deducted at Source, is deducted from your salary by your employer to fulfil tax obligations. Calculated based on annual income minus exemptions and deductions, TDS ensures smooth tax compliance. Form 16, provided by your employer, details salary and TDS deducted, aiding in income tax return filing. Incorrect TDS calculation could lead to interest payments or refunds. Familiarising yourself with legal deductions like 80C, 80D, and HRA could reduce TDS on salary, optimising tax liabilities. Understanding and leveraging these provisions could minimise net taxable income and TDS.
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