How to calculate TDS on salary in India

In India, TDS on Salary is deducted by the employer at the time of payment of salary to the employee. The amount of TDS to be deducted is calculated as per the Income Tax slab rate applicable to the employee. The TDS amount is deducted from the salary of the employee and is deposited to the credit of the Government by the employer.

How to calculate TDS on salary

Income Tax Slab for Individuals below the age of 60 years

Income Tax Slab Income Range Tax Rate

  • Up to Rs.2,50,000 NIL
  • Rs.2,50,001 to Rs.5,00,000 5%
  • Rs.5,00,001 to Rs.10,00,000 20%
  • Above Rs.10,00,000 30%

Income Tax Slab for Individuals aged 60 years or more but less than 80 years (Senior Citizens)

Income Tax Slab Income Range Tax Rate

  • Up to Rs.3,00,000 NIL
  • Rs.3,00,001 to Rs.5,00,000 5%
  • Rs.5,00,001 to Rs.10,00,000 20%
  • Above Rs.10,00,000 30%

Income Tax Slab for Individuals aged 80 years or more (Super Senior Citizens)

Income Tax Slab Income Range Tax Rate

  • Up to Rs.5,00,000 NIL
  • Rs.5,00,001 to Rs.10,00,000 20%
  • Above Rs.10,00,000 30%

Education Cess: 3% will be levied on the tax amount.

Surcharge: A surcharge of 10% is levied on the tax amount where the total income exceeds Rs.50,00,000. A surcharge of 15% is levied on the tax amount where the total income exceeds Rs.1,00,00,000.

The above Income Tax Slab rates are not applicable to companies, firms, etc. The Income Tax Slab rates for companies are given below.

Income Tax Slab for Companies

Income Tax Slab Income Range Tax Rate

  • Up to Rs.250,000 NIL
  • Rs.250,001 to Rs.500,000 7.5%
  • Rs.500,001 to Rs.1,000,000 10%
  • Above Rs.1,000,000 12.5%

Education Cess: 3% will be levied on the tax amount.

Surcharge: A surcharge of 2% is levied on the tax amount where the total income exceeds Rs.1,00,00,000. A surcharge of 5% is levied on the tax amount where the total income exceeds Rs.10,00,00,000.

TDS on Salary is to be deducted by the employer at the time of payment of salary to the employee. The amount of TDS to be deducted is calculated as per the Income Tax slab rate applicable to the employee and is deposited to the credit of the Government.

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