This is Ravi Verma, In this article, I will tell you about the best deduction of TDS on salary.
What is TDS?
The Government of India introduced this section in 1961 and it is a direct tax. After getting into this tax, a salaried person will pay his taxes monthly mode with the help of the TDS payment form and its full form is tax deducted at source.
A man or woman can earn income from numerous resources. earnings tax is an instantaneous tax that they need to pay, depending on which tax bracket their total income falls in. according to the Indian tax gadget, Tax Deducted at Source (TDS) is an important time period in taxation that has a huge bearing at the taxpayers. it’s miles a means of amassing profits tax by means of the government and offers convenience to the deductee as its miles deducted robotically.
TDS is a direct taxation mechanism that was delivered to accumulate taxes from the source of earnings itself or at the time of income payout. TDS full form is Tax Deducted at supply. underneath this mechanism, if a person (deductor) is prone to make a fee to every other individual (deductee) will deduct tax at source and switch the balance to the deductee. The TDS amount deducted will be remitted to the critical authorities. Deductee can check the Tax Deducted at Source (TDS) amount inside the shape 26AS or TDS certificate issued with the aid of the deductor.
OLD TAX SLAB RATE
|S.no||Yearly Income||Tax rate|
|1||up to 2,50,000||Nil|
|2||2,50,001 – 5,00,000||5%|
|3||5,00,001 – 10,00,000||10%|
|4||More Than 10,00,000||30%|
|If any person whose tax is not more than 5 lakh he got a rebate 87A.|
|2||Sec 24 Loss from house property|
(Rant – property tax – 30% rent – Interest)
|3||Sec 80c Investments up to 1.5 lakh|
(PEF, PPF, Home loan, ElSS, ULIP, Life Insurance Premium, SSY, NSC, FD, Tuition Fee, NPS sec 80ccd(1A)
|4||Sec 80ccd (1B) Additional 50000 for NPS||50000|
|5||Sec 80D Medical Insurance Premium||25000|
|6||Sec 80E Interest on Education Loan||1,00,000|
|7||Sec 80EE Additional 50000 Interest on home loan||50000|
|8||Interest on Saving account up to||10000|
|9||Children’s Education Allowance (2 Kids)||2400|
|10||Children Hostel Allowance (2 Kids)||7200|
|11||HRA 25% of CTC (only the government employee can claim this deduction)||4,00,000|