How much TDS is deducted from your salary?

Tax Deducted at Source (TDS) on salary is the monthly income tax your employer withholds from your salary and deposits with the government. It's calculated on your projected annual income after deductions.

Your employer estimates your annual gross salary, subtracts exemptions (HRA, LTA), standard deduction (₹50,000), and Chapter VI-A deductions (80C, 80D, etc.), applies slab rates, adds 4% cess, and divides by 12 for monthly TDS.

No. TDS is a prepayment of income tax. Your actual tax liability is computed when you file your ITR. If TDS deducted is more than your liability, you get a refund; if less, you pay the difference.

The standard deduction is ₹50,000 from salary income, available in both old and new regimes. It's automatically applied by your employer when computing TDS. No proof is required.

Yes. Submit investment declarations (80C, 80D, HRA, home loan) to your employer at the start of the year. This lowers your projected taxable income and reduces monthly TDS.

Old regime: higher slab rates but allows deductions like 80C, 80D, HRA, home loan interest. New regime: lower slab rates but disallows most deductions. The better option depends on your income and deductions.

HRA exemption (old regime only) is the least of: actual HRA received, rent paid minus 10% of basic, or 50%/40% of basic (metro/non-metro). It reduces taxable income and hence TDS.

No. HRA exemption is not available under the new tax regime. If you want to claim HRA, you must opt for the old regime.

Section 80C allows deductions up to ₹1.5 lakh for investments in PPF, ELSS, EPF, life insurance premiums, principal repayment on home loan, children's tuition fees, and more. Available only in old regime.

Section 80D allows deduction for health insurance premiums — up to ₹25,000 for self/family and an additional ₹25,000 for parents (₹50,000 if senior citizens). Available only in old regime.

Section 80CCD(1B) allows an additional deduction of up to ₹50,000 for contributions to the National Pension System (NPS). This is over and above the ₹1.5L under 80C. Old regime only.

Health and Education Cess is 4% of your total tax liability. It's added after computing tax as per slab rates. It applies in both old and new regimes.

Section 87A provides a rebate of up to ₹12,500 if your taxable income is up to ₹5 lakh (old regime). In new regime, the rebate is up to ₹25,000 if taxable income is up to ₹7 lakh. This effectively means zero tax for many small taxpayers.

Your employer will deduct higher TDS without considering deductions. You'll get the excess back as a refund when you file your ITR, but you'll have less take-home during the year.

Salaried employees can choose the regime at the start of each financial year. You can also change it when filing your ITR. However, if you have business income, the rules are more restrictive.

Form 16 is the TDS certificate issued by your employer. It shows your salary, deductions, and TDS deducted during the year. It's used to file your income tax return. Issued by June 15 after the financial year ends.

Declare your previous salary and TDS to your new employer. Otherwise, they may deduct less TDS, leading to a tax demand at year-end. You can also use Form 12B to share previous income details.

TDS is computed on your total taxable salary after exemptions. Components like HRA (partially exempt), LTA (within limits), and reimbursements are treated differently. Your payroll applies the rules.

Yes. Bonus is part of salary income and TDS applies. It may be taxed at a higher rate in the month of payment if it pushes you into a higher slab for that month, but overall annual liability is computed normally.

For salary income, TDS is the primary mechanism. If you have other income (rent, freelance, capital gains) where TDS isn't deducted, you may need to pay advance tax. Consult a CA for guidance.

New regime slabs (FY 2024-25): Up to ₹3L nil, ₹3-7L 5%, ₹7-10L 10%, ₹10-12L 15%, ₹12-15L 20%, above ₹15L 30%. Plus 4% cess. Standard deduction ₹50,000 available.

Old regime slabs: Up to ₹2.5L nil, ₹2.5-5L 5%, ₹5-10L 20%, above ₹10L 30%. Plus 4% cess. Standard deduction ₹50,000 and various Chapter VI-A deductions available.

Check your payslip for monthly TDS. Download Form 26AS from the income tax portal to see all TDS deducted against your PAN. Your employer also issues Form 16 annually.

Form 26AS is a consolidated annual statement showing all TDS deducted against your PAN — from salary, interest, rent, etc. It's available on the income tax portal. Use it to verify TDS credits when filing your ITR.

Yes. If TDS deducted is more than your actual tax liability, you can claim a refund when filing your ITR. The refund is credited to your bank account after processing.

Employers are legally required to deduct TDS if your income exceeds the basic exemption limit. If they don't, you're still liable to pay tax. You may need to pay advance tax or self-assessment tax and file your ITR.

Yes, if you withdraw EPF before 5 years of continuous service. TDS applies at 10% (if PAN provided) or higher (if no PAN). After 5 years, withdrawal is tax-free.

Leave encashment at retirement is exempt up to a limit (₹25 lakh for non-government employees). During service, it's taxable and TDS applies. Rules vary, so consult a tax advisor.

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