TDS on salary is mandatory for all employees earning taxable income. In this help topic you will learn managing TDS related information.
You have to deduct TDS on salary based on the estimated income-tax computed. Compute the estimated annual income of the employee first. Then other income or losses are deducted along with allowed deductions declared by the employee, and income tax is computed on the estimated annual taxable income. The estimated annual income tax is then divided by the number of months applicable, and TDS is deducted every month from salary. You have to remit the TDS on salary with the Government Treasury.
Lock/Unlock Declaration
TDS declaration can be locked in order to avoid modification to the submitted details.
To perform TDS Lock/Unlock Declaration:
- Click on TDS menu and Select TDS Lock/Unlock Declaration in the sub-menu.
- In the screen that opens, click on Lock/Unlock & click on Ok.
- Select the checkbox of the employees for the bulk operation of Lock/Unlock.
Tax savings Declaration
Investment declaration has to be done at the beginning of a financial year. Your employer asks you to declare your tax-saving investments for the year to deduct tax accordingly from your monthly salary. Investment declaration is essential for you to get a better tax rebate.
To configure Tax savings Declaration:
- Click on TDS menu and Select Tax savings Declaration in the sub-menu.
- In the screen that opens, click on New, in the popup select Financial Year & Employee.
- In the window that opens, fill in the details such as, Rent details, Investment details, Donation details, Medical bill details etc.
Click on Save button to save details.
TDS Calculation
To calculate TDS:
1. Click on TDS menu and Select TDS calculation in the sub-menu.
2. In the screen that opens, select Financial year & employee.
3. Select Old or New regime and click on List.
TDS calculation displays various information mainly, Salary details, Deductions u/s 16 & Chapter VI-A deductions.
Salary Details : Click on Salary details to view the Salary Component details of the employee.
Chapter VI-A Deductions : Click Chapter VI-A deductions button to display calculated deductions under Chapter VI-A.
Email : Click on Email to email TDS reports to employees.
STI Report : Click on the STI report, to generate State of Income Report.
Form 16 Export : Click on Form 16 Export button to generate Form 16 Report.
TDS Schedule: Divide Tax payable as 12 equal divisions and allot in each month. Depending on the Payroll settings, TDS will reflect in the Monthly Salary.
Lock/Unlock Regime
TDS regime can be locked in order to avoid modification to the submitted details.
To perform TDS Lock/Unlock Regime:
1. Click on TDS menu and Select TDS Lock/Unlock Regime in the sub-menu.
2. In the screen that opens, click on Lock/Unlock & click on Ok.
3. Select the checkbox of the employees for the bulk operation of Lock/Unlock.
