TDS on Salary: Everything You Need to Know#
What is TDS on Salary?#
Tax Deducted at Source (TDS) on salary is the tax that your employer deducts from your salary before paying you. This ensures regular tax collection throughout the year.
How TDS is Calculated#
- Employer estimates your annual income
- Calculates tax based on applicable slabs
- Divides annual tax by 12 months
- Deducts this amount monthly from salary
Form 130#
Form 130 is a certificate issued by your employer containing:
- Salary details
- Allowances and deductions
- Tax deducted (TDS)
- Proof of tax payment
It is essential for filing your Income Tax Return.
How to Claim TDS Refund#
- Login to income tax portal
- File your ITR
- TDS will be auto-populated from Form 26AS
- If TDS > tax liability, claim refund
- E-verify your return
Key Points#
- TDS ensures regular tax collection
- Check Form 26AS for TDS credits
- Claim credit while filing ITR
- Excess TDS can be refunded
Common Issues#
- Employer not deducting TDS
- Wrong TDS calculation
- Form 130 not received
- TDS not showing in Form 26AS
Contact your employer or HR department for resolution.