How is TDS on Salary computed and levied?

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  1. linto

    linto New Member

    Dear Sir,

    Please let me know until how much amount the exemption is available in case of salary in a financial year. I came to know that upto Rs.2,50,000 in a financial year the exemption is available. Please do confirm. If a person's salary is over and above Rs2,50,000 in a financial year how much TDS to be deducted and for savings or loans any exemption is there.
     
  2. gaurav_kumar

    gaurav_kumar Well-Known Member

    There are various deductions that are available to a salaried employee. Kindly refer: http://www.charteredclub.com/income-tax-deductions/

    After taking into account these deductions, if your net taxable income is less than Rs. 2.5 Lakhs - Nil tax would be levied. Tax would be levied on the amount above Rs. 2.5 Lakhs.

    The tax would be levied as per the income tax slab rates. Refer: http://www.charteredclub.com/income-tax-slabs/

    The TDS to be deducted would be equal to the tax levied as per the income tax slab rates.
     
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