The TDS Mystery - Getting Your TDS Back: A Simple Guide
Ever wonder why your salary feels lighter than it should? Well, if you're earning under ₹5 lakhs per year, you're not alone. The government requires companies to deduct Tax Deducted at Source (TDS) before paying you. But here’s the catch: if your total income for the year is below ₹5 lakhs, you don’t owe any tax. So why is money still being deducted? The TDS Mystery Your company doesn’t know all your sources of income. To play it safe, they cut TDS and give it to the government. Even if you work just one month or a full year, if TDS is cut, it’s sent off to the taxman. But if you earn less than ₹5 lakhs, you're not liable to pay tax. This means that whatever amount was deducted, like ₹500 every month (which adds up to ₹6,000 a year), can be claimed back. Filing Your Tax Return To get your money back, you need to file a tax return. In your return, you'll declare that your earnings are below ₹5 lakhs. The government will realize they’ve collected tax unnecessarily and wi...