TDS is deducted every month. However it is not based on the attendance of every month.
The below is just a brief on how tax is calculated. Pl consult a tax expert for detailed explanation.
At the beginning of financial year (Apr) or the employee joining date whichever is applicable, the employee gives his tax investment declarations to the company.
Then basis the below the payroll department determines the employee tax for the year as per the employee tax slab.
• employees annual gross salary
• tax rules pertaining to conveyance allowance , medical allowance
• Annual employee PF contribution
• Annual PT contribution
• Tax investments (as per eligibility under various tax sections 80C , 80 D, 80 DD etc)
The same amount is then divided among the 12 months and deducted accordingly in every month salary.
Then in Dec or Jan, the company asks the employee to give the actual investment proofs. Then basis the proofs and the TDS already deducted, the TDS for remaining months is reworked and accordingly deducted.
Also if an employee joins in middle of financial year (e.g Oct), then the new company asks the employee to provide details of TDS deducted in his previous company.
The below is just a brief on how tax is calculated. Pl consult a tax expert for detailed explanation.
At the beginning of financial year (Apr) or the employee joining date whichever is applicable, the employee gives his tax investment declarations to the company.
Then basis the below the payroll department determines the employee tax for the year as per the employee tax slab.
• employees annual gross salary
• tax rules pertaining to conveyance allowance , medical allowance
• Annual employee PF contribution
• Annual PT contribution
• Tax investments (as per eligibility under various tax sections 80C , 80 D, 80 DD etc)
The same amount is then divided among the 12 months and deducted accordingly in every month salary.
Then in Dec or Jan, the company asks the employee to give the actual investment proofs. Then basis the proofs and the TDS already deducted, the TDS for remaining months is reworked and accordingly deducted.
Also if an employee joins in middle of financial year (e.g Oct), then the new company asks the employee to provide details of TDS deducted in his previous company.