How to avoide the tds
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
18 May 2015
dear sir,
am newly entered the tax eligibility candidate.my first month salary 40000/ month but my company take tds amount debited my salary 4000 in last month.
please give me your advice to how to split my salary to avoid the tds amount 4000 / month please give your successions
am newly entered the tax eligibility candidate.my first month salary 40000/ month but my company take tds amount debited my salary 4000 in last month.
please give me your advice to how to split my salary to avoid the tds amount 4000 / month please give your successions
18 May 2015
Why they have deducted tds of 4000...
Make some investment and show them...
Make some investment and show them...
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Querist : Anonymous
Querist :
Anonymous
(Querist)
18 May 2015
our accounts people don't have a right knowledge so please advise me
Querist : Anonymous
Querist :
Anonymous
(Querist)
18 May 2015
am wait for experts advertises
28 July 2024
Avoiding TDS (Tax Deducted at Source) entirely may not be feasible if your income is above the taxable threshold. However, you can take steps to manage and minimize TDS effectively. Here’s how you can handle your situation:
### **1. Understanding TDS on Salary**
1. **Taxable Income:** Your salary is subject to TDS based on the applicable tax slab. For the Financial Year (FY) 2023-24, the tax slabs are:
- Income up to ₹2.5 lakh: Nil
- Income from ₹2.5 lakh to ₹5 lakh: 5%
- Income from ₹5 lakh to ₹10 lakh: 10%
- Income above ₹10 lakh: 30%
2. **TDS Calculation:** Your employer calculates TDS based on your expected annual income, including any other deductions or exemptions you may be eligible for.
### **2. Steps to Reduce TDS on Salary**
**2.1. **Declare Accurate Investment Details**
1. **Investments:** Declare all eligible investments and expenses under various sections of the Income Tax Act to reduce taxable income:
- **Section 80C:** Investments in Provident Fund (PF), Life Insurance Premium, Equity-linked Savings Scheme (ELSS), National Savings Certificate (NSC), etc.
- **Section 80D:** Premium for Mediclaim (Health Insurance).
- **Section 24(b):** Interest on home loan.
2. **Provide Proof:** Submit proof of these investments to your employer so they can adjust your TDS accordingly.
**2.2. **Revised Tax Calculation**
1. **Calculate Annual Income:** Estimate your annual income and apply any eligible deductions to calculate your net taxable income.
2. **Adjust TDS:** If your taxable income is below the taxable threshold or eligible for deductions, your employer can adjust the TDS. Make sure to inform your employer of these adjustments.
**2.3. **Submit Form 15G/15H**
1. **Form 15G:** If your total annual income is below the taxable limit, you can submit Form 15G to your employer to avoid TDS.
- **Eligibility:** Available for individuals below the taxable income threshold.
2. **Form 15H:** For senior citizens (aged 60 years or above) whose total income is below the taxable limit.
- **Eligibility:** Submit Form 15H if you are a senior citizen and your total income is below the taxable limit.
**2.4. **Adjust Your Salary Structure**
1. **Reimbursements:** Ensure that any reimbursements (such as for travel, medical, etc.) are structured correctly and are not taxable.
- **Non-Taxable:** Certain allowances and reimbursements may not be taxable if they fall within prescribed limits.
2. **Change Salary Components:** Discuss with your employer about changing your salary structure to include more non-taxable components if possible.
### **3. Managing TDS if Already Deducted**
**3.1. **File Income Tax Returns**
1. **Claim Refund:** If excess TDS has been deducted, you can claim a refund while filing your annual income tax return.
2. **Reconciliation:** Ensure that your TDS is reconciled with the Form 26AS, which is a consolidated tax statement.
**3.2. **Maintain Records**
1. **Proof of Investments:** Keep all records of your investments, deductions, and any other documentation that supports your claim for a lower taxable income.
2. **TDS Certificate:** Collect TDS certificates (Form 16) from your employer which shows the total TDS deducted and deposited.
### **Summary**
1. **Declare Investments:** Provide accurate details of your eligible investments and deductions to your employer.
2. **Submit Forms:** If eligible, submit Form 15G/15H to avoid TDS.
3. **Adjust Salary Structure:** Discuss with your employer about optimizing your salary structure to include more non-taxable components.
4. **File Returns:** Claim any excess TDS deducted as a refund when you file your income tax return.
### **Additional Tips**
- **Consult a Tax Professional:** If you are unsure about how to calculate deductions or manage your TDS, consult a tax professional or financial advisor.
- **Stay Updated:** Keep yourself updated with the latest tax regulations and rules to maximize your tax efficiency.
By following these steps and understanding the TDS process, you can better manage your tax liabilities and potentially reduce TDS deductions.
### **1. Understanding TDS on Salary**
1. **Taxable Income:** Your salary is subject to TDS based on the applicable tax slab. For the Financial Year (FY) 2023-24, the tax slabs are:
- Income up to ₹2.5 lakh: Nil
- Income from ₹2.5 lakh to ₹5 lakh: 5%
- Income from ₹5 lakh to ₹10 lakh: 10%
- Income above ₹10 lakh: 30%
2. **TDS Calculation:** Your employer calculates TDS based on your expected annual income, including any other deductions or exemptions you may be eligible for.
### **2. Steps to Reduce TDS on Salary**
**2.1. **Declare Accurate Investment Details**
1. **Investments:** Declare all eligible investments and expenses under various sections of the Income Tax Act to reduce taxable income:
- **Section 80C:** Investments in Provident Fund (PF), Life Insurance Premium, Equity-linked Savings Scheme (ELSS), National Savings Certificate (NSC), etc.
- **Section 80D:** Premium for Mediclaim (Health Insurance).
- **Section 24(b):** Interest on home loan.
2. **Provide Proof:** Submit proof of these investments to your employer so they can adjust your TDS accordingly.
**2.2. **Revised Tax Calculation**
1. **Calculate Annual Income:** Estimate your annual income and apply any eligible deductions to calculate your net taxable income.
2. **Adjust TDS:** If your taxable income is below the taxable threshold or eligible for deductions, your employer can adjust the TDS. Make sure to inform your employer of these adjustments.
**2.3. **Submit Form 15G/15H**
1. **Form 15G:** If your total annual income is below the taxable limit, you can submit Form 15G to your employer to avoid TDS.
- **Eligibility:** Available for individuals below the taxable income threshold.
2. **Form 15H:** For senior citizens (aged 60 years or above) whose total income is below the taxable limit.
- **Eligibility:** Submit Form 15H if you are a senior citizen and your total income is below the taxable limit.
**2.4. **Adjust Your Salary Structure**
1. **Reimbursements:** Ensure that any reimbursements (such as for travel, medical, etc.) are structured correctly and are not taxable.
- **Non-Taxable:** Certain allowances and reimbursements may not be taxable if they fall within prescribed limits.
2. **Change Salary Components:** Discuss with your employer about changing your salary structure to include more non-taxable components if possible.
### **3. Managing TDS if Already Deducted**
**3.1. **File Income Tax Returns**
1. **Claim Refund:** If excess TDS has been deducted, you can claim a refund while filing your annual income tax return.
2. **Reconciliation:** Ensure that your TDS is reconciled with the Form 26AS, which is a consolidated tax statement.
**3.2. **Maintain Records**
1. **Proof of Investments:** Keep all records of your investments, deductions, and any other documentation that supports your claim for a lower taxable income.
2. **TDS Certificate:** Collect TDS certificates (Form 16) from your employer which shows the total TDS deducted and deposited.
### **Summary**
1. **Declare Investments:** Provide accurate details of your eligible investments and deductions to your employer.
2. **Submit Forms:** If eligible, submit Form 15G/15H to avoid TDS.
3. **Adjust Salary Structure:** Discuss with your employer about optimizing your salary structure to include more non-taxable components.
4. **File Returns:** Claim any excess TDS deducted as a refund when you file your income tax return.
### **Additional Tips**
- **Consult a Tax Professional:** If you are unsure about how to calculate deductions or manage your TDS, consult a tax professional or financial advisor.
- **Stay Updated:** Keep yourself updated with the latest tax regulations and rules to maximize your tax efficiency.
By following these steps and understanding the TDS process, you can better manage your tax liabilities and potentially reduce TDS deductions.
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