Threshold for TDS Deduction on Employee Salary

Rewards Accnt (3 Points)

20 March 2025  

Hello,

Any guidance you could provide would be greatly appreciated.

For FY24-25, the threshold for no tax payable is Rs. 3,00,000. Some of our employees earn less than Rs. 7,00,000 annually. Does this mean that we, as the employer, should start deducting TDS since their annual salary exceeds the threshold, with employees claiming a refund using the rebate in their ITR? Or, should we refrain from deducting any TDS, as their salary is still under Rs. 7,00,000?

Thank you in advance for your clarification.