Income tax 491626 1280

Be it, employees or HR managers, every working individual should have a clear picture of components that are decreased from his or her payroll every month. Now, there are several elements that affect a person’s monthly salary. Out of all of them, tax deducted at source or TDS is one of the most important factors. If you are someone who does not have any knowledge about it, you are certainly in the right place. We will tell you everything about TDS that you must know. So, without further ado, let’s dive in and learn TDS, TDS calculator, and much more.


Simply put, it is income tax that is subtracted from the expense spent at some particular payments by somebody making those payments.

Normally, one who gets income is supposed to bear income tax. Plus, it is necessary to know that the govt. with the help of Tax Deducted at Source provisions ensure that income tax is subtracted beforehand.

In addition, not every income and person is supposed to bear TDS for all transactions. Besides, the Income Tax Act has fixed various TDS rates for various payments as well as people.

TDS Calculator

Calculating TDS manually is, undoubtedly, not as easy as it sounds. Fortunately, we are living in a digital era today and every piece of information is just a google search away. And the same goes for TDS as well.

To make the whole TDS calculation process easier, individuals can rely on TDS calculators. If TDS calculators are considered, they are online tools that are particularly designed to assist people to calculate their TDS in a matter of seconds. At present, there are a host of TDS calculators available on the internet.

So, that was the definition of TDS as well as the TDS calculator. We understand that you may still have a number of doubts/queries related to TDS. Considering the same, we have answered some of the frequently asked questions about TDS below.

Take a look:

Is the TDS rate the same for every income that comes under TDS?

Truth be told, most of the people out there do have this question in their minds. Now, the answer to this is tax deducted at source is subtracted at different rates from every income.

What is the definition of deductor and deductee?

Talking about the deductor, he or she is the one who deducts tax.

When it comes to Deductee, he or she is the individual who gets the payment after the deduction of tax.

How can a person know if his or her tax deducted at the source is deposited with the government or not?

This is also one of the common questions of working people.

So, one should know that after the deductor deposits the TDS with the government, that amount will be shown on the person’s Form 26AS in no time. In addition to this, it is vital to note that the deductor should also issue the person a TDS certificate.

What rate will be used while calculating it on salaries?

As per the regulations, TDS on salaries is subtracted at the income tax rate that applies to a person’s income including cess.

How can one calculate it?

It is basically calculated on the Cost to the Company or CTC of an employee that also includes every allowance mentioned in his or her salary slip format.

That is it.

We hope this blog helped you to know more about TDS.

If you are a Human Resource manager, you must know every detail mentioned above. You never know when an employee will come to you and ask things about TDS. Keeping the same thing in mind, an HR manager should be a person who knows everything clearly. Also, if you know a person who is yet to know about TDS, share this blog with him/her and help them to understand the whole concept.