Table of Contents
How can I reduce my TDS deduction?
How can I minimise TDS on Salary?
- It is mandatory to deduct TDS on salary if the employee’s income exceeds the exempt tax limit.
- Under Section 80C and 80D, the government allows tax exemptions, where a taxpayer can claim an exemption based on his/her various investments in that financial year.
Is medical allowance taxable?
Medical allowance is a fixed component that you receive every month as part of your monthly salary, that is taxable as salary income. No bills are required to be submitted for taking this allowance.
Is medical allowance exempt?
Under the IT Act 1961, medical allowance is not categorized as an allowance that bears exemption. Medical allowance is, therefore, a fixed pay provided by an employer every month, which is fully taxable.
Who is responsible for computation of TDs and HRA?
Employer is responsible for computation of TDS based on the proofs and declaration, deducting the taxes from salary and depositing those with the authority. HRA – If the employee lives in a rented facility and is paying rent towards accommodation, then it will be allowed for House Rent allowance deduction.
How does an employer deduct TDs from salary?
An employer will always deduct tax deducted at source (TDS) from your salary if your salary income crosses the threshold limit. However, there are a few th An employer will always deduct tax deducted at source (TDS) from your salary if your salary income crosses the threshold limit.
What is the standard deduction for HRA on gross salary?
A standard deduction of Rs 50,000 is given on your gross salary to arrive at taxable salary income. 1) If HRA is part of your salary – If you are living on rent, you must produce rent receipts to your employer to claim tax deduction.
What is TDs under Section 80D of income tax?
TDS under Section 80D– This section deals with tax deduction for medical expenditure and on payments of medical insurances. Medical Allowance – Employees can declare Medical Allowance by producing Medical bills for tax exemptions.