Tds on salary of 50,000

When you receive a payment – as salary from an employer, as a fee for professional services or as interest from the bank – you may notice that a certain percentage of the total sum has been deducted as TDS.

This is tax deducted at source.

Tds on salary section

According to Indian tax laws, payers are expected to deduct a percentage of the total payment as tax and deposit it with the government.

What Is TDS?

Tax Deducted at Source (TDS) is exactly what the name suggests. It is the amount of money deducted as tax by the payer before making a payment for any kind of service or job done.

TDS has to be paid by individuals as well as businesses.

For example, when an employer gives a salary to his employee, he has to cut a certain percentage of the amount as TDS before making the payment. The employer must then deposit the money with the government.

TDS applies to other types of payments as well – such as rent, commission, interest payment by banks, professional fees, consultation fees, etc.

It is mandatory for companies and institutions to deduct this tax and deposit it wi

how to calculate tds on salary with example

how to calculate tds percentage on salary