Understanding TDS Calculation: Key Factors and Rates Explained
Learn how TDS is calculated, including income slabs, transaction types, and official tax rates for accurate deductions.
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TDS (Tax Deducted at Source) is calculated based on income slabs, transaction types, and applicable rates set by the tax authorities. It's deducted at the time of payment, such as salary, rent, or professional fees. For accurate calculation, refer to the official tax rate tables and consider specific exemptions and thresholds relevant to the income type.
FAQs & Answers
- What factors influence TDS calculation? TDS calculation is influenced by income slabs, types of transactions, and the specific rates set by tax authorities.
- When is TDS deducted? TDS is deducted at the time of payment for various sources such as salary, rent, and professional fees.
- How can I verify my TDS deductions? To verify your TDS deductions, you can refer to the official tax rate tables and check for any exemptions and thresholds relevant to your income type.
- Are there exemptions for TDS deductions? Yes, there are specific exemptions and thresholds that can influence TDS deductions based on the type of income and the prevailing tax laws.