TDS Computation
The Tax Worksheet (Computation) provides a detailed calculation of an employee’s taxable income and tax liability based on their salary, declared investments, approved proofs, exemptions, and deductions as per the Income Tax rules.
Navigate to Tax and Statutory Compliances → Tax Declaration → Income Under Section 24.
Click on the TDS for Current Month card and then select View TDS button.
A pop-up window will appear displaying the detailed TDS Worksheet. There is an option to Download and Print are available at the top-left corner of the window.
As a Payroll Admin, you can switch between employees by clicking the Change Employee button. The selected employee’s name will be displayed in the pop-up window.
How does the TDS calculation work?
TDS is calculated for each employee automatically based on the CTC of the employee. The total earnings, and deductions of an employee is projected for a financial year. Based on the tax slab that the projected taxable income falls into, the tax is calculated. When an employee declares their investments, it is factored into the projection and the tax for the subsequent months is adjusted. Similarly, if the employee earns a bonus/commission in the middle of the year, that too will be adjusted in the tax calculation.
In the TDS worksheet, you will find three columns: Actual, Projection, and Total.
Actual: The amount earned or deducted so far.
Projection: The amount to be earned or deducted till the end of the financial year.
Total: The amount for which the tax is calculated.
Any changes to the earnings or deductions mentioned here will be reflected in the tax calculation in the subsequent months.
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