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 will refund the amount directly to your bank account.

Why Some People Miss Out

A lot of people find filing tax returns intimidating and skip the process altogether. The result? They miss out on the refund and the government keeps the money. Don’t let this happen to you!

Manipulating to Save More

For those who earn slightly above ₹5 lakhs, there’s a workaround: deductions. By donating or investing in tax-saving schemes, you can bring your taxable income below ₹5 lakhs, which means you pay zero tax. Even if TDS was deducted, you can still claim it back by filing your return.

Takeaway

Remember, if your income is below ₹5 lakhs, you owe zero tax. Don’t be scared of filing your return—it’s the only way to get your money back. So, make sure to claim what’s yours!