TDS on Salary

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 March 2010 HI!

i m salaried employee my anually earning
Rs.390000/- and i have allready following Investment but also my income is liable for TDS. so pls. anyone tell how i save TDS and which type of investment i do for save TDS 09-10

T.A. Rs.9600/-
80 C 100000/-(69605 LIP+25000 PPF)
80 D (7625)
HRA Rs. 54000/-
(HRA Pay Rs.7500/- and recd Rs.12000/- per month so HRA rebate only Rs.54000/-)

so now my taxable income is Rs.58775/-

pls. tell me what i do ???

Querist : Anonymous

Querist : Anonymous (Querist)

29 March 2010 Pls. give suggestion

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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27 July 2025 Hey! Let’s break this down and see how you can save on TDS for your salary income.

### Your situation (FY 2009-10):

* Annual Income: Rs. 3,90,000
* Investments under Section 80C: Rs. 1,00,000 (max limit)
* Section 80D (Medical insurance): Rs. 7,625
* HRA exemption claimed: Rs. 54,000
* Taxable Income (after deductions): Rs. 58,775 (which is below basic exemption limit of Rs. 1,60,000 for FY 09-10)

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### Why are you still liable for TDS?

For FY 09-10, the basic exemption limit was Rs. 1,60,000. Since your **taxable income is only Rs. 58,775**, **no tax liability arises** and therefore no TDS should be deducted.

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### How to avoid TDS deduction on salary?

* **Submit proof of your investments and deductions to your employer** before the start of the financial year or as early as possible, so they calculate TDS on your actual taxable income.
* If you haven’t submitted proofs, your employer may deduct TDS assuming no deductions.
* You can submit **Form 15G** (if applicable, i.e., if your total income is below taxable limit and you are below 60 years) to your employer to avoid TDS.
* Otherwise, submit **investment proofs under 80C, 80D, rent receipts for HRA exemption**, etc.

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### Additional investment options to save TDS:

Since you have already exhausted 80C limit, and 80D, your options to save more tax are limited, but here are some you can consider:

* **Section 80E:** Interest on Education Loan (if applicable)
* **Section 80TTA:** Interest on savings bank account (up to Rs. 10,000)
* **Section 80G:** Donations to specified charities
* **Section 80GG:** If you are paying rent but not receiving HRA, this can be claimed.

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### If TDS is deducted despite your low taxable income:

* File your **Income Tax Return** and claim refund of excess TDS deducted.
* Keep all proofs ready to avoid future unnecessary TDS.

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### Summary for you:

* Submit all proofs on time to employer.
* Since taxable income is below exemption limit, you should **not get TDS deducted**.
* Submit Form 15G if eligible.
* Consider other deductions under different sections if you want to reduce tax further.

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Want me to help you prepare a list of documents to submit or draft a Form 15G?

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