How much tds is deducted on salary per month

TDS Deduction Rules 2020: Every penny counts!

Is it mandatory to deduct tds on salary on monthly basis

No one can probably understand the significance of this phrase better than salaried individuals navigating their daily lives with hard-earned monthly salary payments. With little planning and awareness of the rules, salaried individuals can save a lot of the amount that would otherwise go for tax payment.

Ankit Agarwal, Managing Director, Alankit Ltd, told FE Online, “Under Section 192 of the Income Tax Act, 1961, taxes deducted at source (TDS) are covered, making it compulsory for employers to retain taxes during salary payments.” He added that there is no tax payable on income not exceeding Rs 5 lakh as per Financial Year 2019-20.

However, for those earning more, following pointers could help them avoid paying excess TDS:

Submit all investment proofs for deduction under Section 80C

Employers deduct the applicable tax in advance from salaries paid to employees.

The latter can avoid salary cut by investing in eligible tax deduction instruments.

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