1. What is Salary TDS?

TDS (Tax Deducted at Source) on salary is the amount of income tax deducted by an employer from an employee's salary before paying it to them. It's based on the employee's estimated tax liability for the year.

2. How Does the Calculator Work?

The calculator uses the current income tax slabs:

Where tax is calculated based on:

• Annual salary after standard deductions
• Applicable tax slabs
• Health and education cess (4%)

Explanation: The calculation considers progressive tax rates where different portions of income are taxed at different rates.

3. Importance of TDS Calculation

Details: Accurate TDS calculation ensures proper tax compliance, avoids underpayment penalties, and helps in financial planning.

4. Using the Calculator

Tips: Enter your gross annual salary, age, and gender. The calculator will estimate your annual TDS liability based on current tax slabs.

5. Frequently Asked Questions (FAQ)

Q1: What deductions are considered in TDS calculation?
A: Standard deduction of ₹50,000 is automatically applied. Other deductions like HRA, 80C investments would need to be considered separately.

Q2: How often is TDS deducted from salary?
A: TDS is deducted every month by your employer based on your estimated annual tax liability.

Q3: What if my actual tax liability is different?
A: You can claim refunds or pay additional tax while filing your annual income tax return.

Q4: Are there different tax slabs for senior citizens?
A: Yes, individuals above 60 years get higher exemption limits and different tax slabs.

Q5: Does this calculator consider all tax-saving investments?
A: No, this provides a basic estimate. For precise calculation, consider all applicable deductions and exemptions.