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.
TDS on salary ensures tax compliance by deducting tax at the source from your income
Understanding TDS on salary helps manage your tax liabilities effectively
Employers calculate TDS on salary based on your annual income after deductions
Form 16 provides vital insights into your salary and TDS details, aiding in filing tax returns
Accurate TDS on salary calculation is crucial to avoid potential tax-related issues
Regularly checking your payslip ensures correct TDS on salary
Exploring legal avenues to reduce TDS on salary through investments and deductions is essential
Leveraging provisions like 80C, 80D, and HRA can lower your net taxable income and TDS on salary