How to Calculate TDS on Salary

• October 24, 2020
• CA Chandan Agarwal's Office

TDS:

Tax Deducted at Source was established for collecting tax from the income sources according to the Indian Income Tax Act of 1961. TDS is helpful in minimizing tax evasion by taxing the income at the time than at an after date. The deductor who is responsible for making payment of income to the deductee shall deduct tax at income and pay the tax to the income tax department of the Central Government.

TDS rates deducted shall differ for different types of salaries. Income sources which are eligible for tax deduction include salaries, interest received, property sales, commission received, rent, bank interests, professional fees, consultation fees, dividends, amount from assets etc.

Read more on: https://taxguru.in/income-tax/calculate-tds-salary.html