TDS on Salary: Complete Employer Guide#
TDS Calculation#
Steps#
- Calculate gross salary
- Add perquisites
- Allow exemptions (HRA, LTA)
- Deduct standard deduction
- Calculate tax on remaining
Section 192#
Deductions:
- Standard Deduction: ₹50,000
- Section 123: Up to ₹1.5L
- Section 126: Up to ₹25,000
- Section 80E: Education loan
- HRA: As per rules
TDS Deposit#
- Due: 7th of next month
- Challan: 281
- TAN mandatory
Form 24Q#
Quarterly statement for salary TDS.
| Quarter | Due Date |
|---|---|
| Q1 | 31st July |
| Q2 | 31st Oct |
| Q3 | 31st Jan |
| Q4 | 31st May |
Form 130#
Annual TDS certificate.
Employer Responsibilities#
- Deduct correct TDS
- Deposit on time
- File quarterly returns
- Issue Form 130
Conclusion#
Employer must comply with TDS rules.