1 / 9

All You Need to Know About TDS Calculation

The percentage of salaried employees aware of TDS calculation and deduction needs to be higher One can increase their savings on deductions under the Income Tax sections in various ways A prepared employee may plan and make wiser choices as the new fiscal year approaches<br>

ConfluxHR
Download Presentation

All You Need to Know About TDS Calculation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Section 80C Income Tax on Salary TDS Deduction https://confluxhr.com/

  2. What Exactly is TDS? In India, the Indian Income Tax Act of 1961 specifies TDS as a method of income tax collection. TDS applies to salaries, commissions, brokerage fees, contract interest received on various financial investments, lotteries, rental income, professional fees, etc. A component of the Department of Revenue, which is run by the Indian Revenue Service, the TDS is overseen by the Central Board for Direct Taxes (CBDT) (I.R.S.). collected to ensure the government’s consistent annual Because of this, tax evasion is prevented. royalties, payments, This sum is income stream.

  3. What Factors are Used for TDS Calculation? If you’ve ever observed, the C.T.C. (cost to the business) estimate given to you at the time of joining includes items like the base salary, travel expenses, medical expenses, housing rent expenses, and other allowances. Additionally, there are two main categories for salary, namely perquisites. Benefits include services that the employer offers to the employee, such as paying for their travel and fuel costs. Organizations now use the best TDS software to calculate employee TDS and do many other payroll-related tasks.

  4. How is TDS Determined? Sections 80C and 80D of the Income Tax Act of 1961 permit deductions for government taxes. This enables a person to search for various investments for a specific fiscal year. By deducting the exemption from the total annual earnings stated by the Income Tax department, one can compute TDS on salary rate. If an employee requests a tax exemption, the employer must get a declaration and supporting documentation before approving the request. The following are some possible tax exemption categories. House Rent Allowance: H.R.A. is a benefit that an employee may claim from their employer if they pay rent for housing. Conveyance or Travel Payment: If your company gives you this type of allowance, they can declare it for tax purposes. Medical Allowance: If your employer offers you a medical allowance, they may report it and furnish medical records to qualify for a tax exemption.

  5. TDS Deduction A claim for a refund of the excess amount can be made if a person has paid more in taxes than required. Additionally, TDS deductions for people in different income brackets are computed based on various variables. TDS Deduction Methods Salary, commission payments, and payments to independent contractors are examples of income and expenses that fall under the scope of TDS. As a result, the source deducts a portion of the total payment whenever one of these segments receives payment. The “Deductor” is the source, which can be either a person or an organization. The Deductee is the person from whose deduction is made. lotteries, bank interest, rent, payment the

  6. Income Tax Deductions List FY 2022 Income Tax Deductions List FY 2022- -23 (AY 2023 23 (AY 2023- -24): 24): Section Eligible Investments/expenses 80C Contributions made towards- EPF/VPF, PPF, ELSS mutual funds, Sukanya Samriddhi, senior citizens savings scheme, NSC. A 5-year term deposit, life insurance or ULIP premium, home loan principal repayment, stamp duty paid towards house purchase, children’s school tuition fee (maximum two children). 80CCC Contributions made to any annuity or pension plan of a life insurance company. 80CCD (1) Both salaried employees and self-employed can claim this deduction on their contribution towards NPS, not more than- 10% of Basic Salary+DA (in case of an employee), 20% of total gross income (for self-employed).

  7. Why is Filing the Correct Tax Return Necessary? Why is Filing the Correct Tax Return Necessary? When calculating your tax liability, you must be truthful about outgoings. When transitioning to a new job, you could overlook some aspects, such as income from the additional revenue from a contractual opportunity. However, one should refrain because doing so will subject one to severe fines from the relevant tax authorities, who will also take legal action. To prevent issues with the taxman, you must guarantee that your data is accurate and can withstand future cross-verification. your income and prior position or

  8. Contact US Contact US Address- DCB-705, 7thFloor, DLF Cybercity, Infocity, BBSR-751024, India Address- DBI LLC, 584 Castro St #2136 San Francisco CA 94114-2512 Website:https://confluxhr.com/ Email: enquiry@confluxhr.com Mob: +91 720-533-6111

  9. Thank You Thank You

More Related