TDS stands for Tax Deducted at the Income Source. Your tax bracket and, hence, the TDS deduction on your salary are determined by the income you get from your employer. Depending on your bracket, the TDS deduction on your pay will range from 10% to 30%. But you can lower your taxes. For that, you must check the tips on how to reduce TDS in salary I have shared below.
How to Reduce the TDS on Salary?
Many salaried individuals end up facing excess TDS because of a lack of tax planning or proper communication with their employer. Here are some tips you can follow.
At the beginning of the financial year, declare your intended tax-saving investments under sections like 80C (up to Rs1.5 lakh for PPF, ELSS, LIC, etc.), 80D (health insurance), and 80E (education loan interest). This helps your employer calculate TDS accurately.
Ensure timely submission of investment proofs, rent receipts (for HRA), and loan interest certificates. Delays can lead to higher TDS deductions.
Choose between the old and new tax regimes wisely. If you claim deductions, the old regime may be better. Communicate your choice to your employer early in the year.
If eligible, claim House Rent Allowance (HRA) and Leave Travel Allowance (LTA) by providing valid documents. These can significantly reduce taxable income.
This is all about how to reduce TDS from salary.
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How to Reduce TDS From Salary?
shikha
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2025-05-24T06:02:26+00:00 2025-05-24T06:02:28+00:00Comment
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