TDS on Salary

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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 online

Aashok Kumar Sharma

(Expert)

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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