TDS on Salary - 2024

TDS (Tax Deducted at Source) on salary is applicable to:

 1. Whom: - Employers (including individuals, HUFs, partnerships, companies, etc.) - Employees (including Indians and foreign nationals) earning salary income

2. What percentage: - The TDS rate varies based on the employee's income tax slab - Typically ranges from 10% to 30% (plus cess and surcharge, if applicable) 

Here's a step-by-step guide: 

1. Determine the employee's tax liability: - Calculate the employee's gross salary - Apply income tax deductions (e.g., HRA, LTA, medical expenses, etc.) - Apply income tax exemptions (e.g., allowances, perquisites, etc.)

 2. Calculate TDS: - Use the income tax slab rates to determine the tax liability - Apply the TDS rate (10% to 30%) to the tax liability

 3. Deduct TDS: - Deduct the calculated TDS amount from the employee's salary - Deposit the TDS amount to the government

4.Furnish TDS returns: - File Form 24Q (quarterly) and Form 26Q (annual) - Provide the employee with Form 16 (TDS certificate) Note: 

- TDS rates may vary based on government notifications and individual circumstances - 

Employers must obtain a TAN (Tax Deduction and Collection Number) for TDS purposes -

 Employees can claim a refund of excess TDS deducted while filing their income tax

If taxable salary of any employee is more than basic exemption limit than there is liability of employer of TDS deduction from the monthly salary of employee.

TDS will be applicable as per slab rate. 

Employer have to obatain TAN from goverment for TDS deduction and after deduction TDS will be deposit on monthly basis and form 24 Q will be filed on quqrterly basis.