Who Is Liable To Pay TDS On Salary?

Is it mandatory to deduct TDS on salary on monthly basis?

An employer is required to deduct TDS at the time of payment of salary to employees.

Since the employer is paying salary every month, he is liable to deduct TDS every month else he shall be liable to pay interest and penalty.


How is TDS calculated on salary?

Here’s how an individual can calculate TDS on income: Add basic income, allowances and perquisites to calculate gross monthly income. Compute the available exemptions under Section 10 of the Income Tax Act (ITA) … Multiply the number obtained from the above calculation by 12, as TDS is calculated on yearly income.

What is the minimum salary for TDS deduction?

2. When is TDS Deducted under section 192AgeMinimum incomeResident in India below 60 yearsRs 2.5 lakhSenior Citizens between 60 years and below 80 yearsRs 3 lakhSuper Senior Citizens above 80 yearsRs 5 lakhNov 4, 2020

What is TDS full name?

Income Tax Department > Tax Deducted at Source (TDS)

What is the TDS rate for salary?

Slabs for Deduction from Employees-IncomeTax RateUpto `2,50,000Nil.`2,50,001 to `5,00,0005%`5,00,001 to `10,00,000`12,500 + 20% of Income exceeding `500,000.Above `10,00,000`1,12,500 + 30% of Income exceeding of `10,00,000.

Is TDS refundable on salary?

Tax Deducted at Source (TDS) is the sum that is deducted from a taxpayer’s income like salary, interest from bank accounts, rent etc. If the TDS collected is more than what you owe to the government, you can get a TDS Refund.

How can I save TDS?

Saving TDS through Sec 80C benefits Among the most preferred routes to reduce your TDS or tax liability from salary would be investing in PPF. The Public Provident Fund (PPF) offers you a tax rebate of nearly Rs 1.5 lakhs per annum.

Who is liable to deduct TDS on salary?

Under Section 192 of the Income Tax Act, every employer who is paying a salary income to his employee is required to deduct TDS from the salary income if it exceeds the basic exemption limit.

What is TDS rule?

Tax Deducted at Source (TDS) is a system introduced by Income Tax Department, where the person responsible for making specified payments such as salary, commission, professional fees, interest, rent, etc. is liable to deduct a certain percentage of tax before making payment in full to the receiver of the payment.

Why is TDS deducted from salary?

TDS refers to tax deducted at source of income itself. In the case of TDS on salary, it relates to the tax deduction made by an employer on your salaried income. TDS on salary helps the government in collecting income tax accruing from an individual’s salary at the source.

Why is TDS required?

TDS stands for tax deducted at source. As per the Income Tax Act, any company or person making a payment is required to deduct tax at source if the payment exceeds certain threshold limits. … It is the deductor’s responsibility to deduct TDS before making the payment and deposit the same with the government.

On what amount TDS is deducted?

TDS is deducted only if your total income is taxable. However, TDS will not be deducted in case your total income is Rs. 2,50,000 and this amount is applicable for men and women below the age of 60 years. Note: TDS deduction rate on salary ranges from 5% to 30% which is equivalent to the applicable income tax slabs.