How IT & TDS on salary are calculated?
What is the difference between IT & TDS?
Kindly give me some examples
3 Likes
IT is levied on Income from Salary and TDS is applicable to Professional Fees.
3 Likes
TDS - Tax deduction at Source is the primary responsibility of the Employer to deduct taxes based on the salary paid to the employees.
Eg: If an individual in getting only the salary then the company which is paying him salary will be responsible to deduct taxes and remit the taxes to the Government(TDS). Say if that individual is getting income from other sources, he will have to pay taxes for that additional income apart from salary based on the prevailing tax rates.
IT - Any individual or Employee or the Assess will be responsible to adhere and pay the taxes if they are having other sources of income apart from salary.
Tax deduction at source (TDS) is part of the Income tax act.
4 Likes
Income tax refers to a compulsory contribution levied on individual’s personal income as per his/her earning. There are a standard tax slab rates according to which the money gets deducted from your gross income. In other words, it basically refers to the total tax liability on an individual basis his annual taxable income after considering deductions & exemptions determined at the end of Financial Year.
TDS represents part of Income-tax that is already paid by the assessee, which can be set off against Income tax and balance tax liability to be paid. Necessary adjustment of TDS is done while filing Income Tax return and in case any excess amount is deducted, the same can be claimed as refund.
ncome tax and TDS are two forms to collect taxes in a different way. Here are four difference you should look at:
=> Annual Vs Periodic
Income tax : It is paid on the annual income where taxes are computed for a particular financial year.
TDS: It is deducted at source on a periodic basis in the particular year.
=> Direct Vs Indirect
Income Tax: The taxpayer determines his liability and makes the payment directly to the government.
TDS: It an indirect way of discharging of one’s tax liability where the deductor (Employer, Banks, financial institutions) of taxes facilitates the process of tax recovery for the government.
=> Gross Income Vs Certain Income
Income Tax: The tax is levied on the overall income earned by an individual (assessee) during a financial year.
TDS : The income tax law casts an obligation of deducting tax at source only on certain persons making certain prescribed payments.
=> After Vs Before
Income tax: It is levied on all salaried individuals or entities for the income they earned above the prescribed tax limit for that particular time period after a completion of a certain Financial Year.
TDS: The entire process of tax deduction and payment results in an obligation to pay taxes even before the taxpayer receives the income.
3 Likes
Thank you all for explaining the concept
2 Likes
Hello Team,
Can you provide me the information in framing a leave policy and number of CL/SL/ELas per telangana government.
2 Likes
Income is leived on for the income earned above the tax limit for a particular period. TDS is deducted at source assuming that you have taxable income
IT is deducted after exemption income (250000)
TDS - Calculate total eranings, collect declaration, calculate total amount eligible foe tax exemption
2 Likes
well explained @ ankit… My message is very precise 
2 Likes