Q&A

Why does my TDS deduction from my monthly emolument varies every month?

Your emoluments may be varying each month, which is why the absolute value of the TDS must be varying each month

Why does my TDS deduction from my monthly emolument varies every month?
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I am paid my monthly emoluments after deducting the TDS. However, the deduction varies every month – why is it so?

Rati Sinha, Bhopal

Typically 10 per cent of what you are to be paid is deducted as TDS. This sum would vary depending on how much you are to be paid. For instance if you are to be paid Rs 40,000 for an assignment – Rs 4,000 will be deducted as TDS before you receive the payout. In your case, your emoluments may be varying each month, which is why the absolute value of the TDS must be varying each month. You should not worry too much about this variation, as at the end of the year, you will get a sense on the total TDS and the tax liability that you face, based on which you may need to pay more income tax or claim a refund.