The TCS/TDS declaration ensures that any Tax Collected at Source (TCS) or Tax Deducted at Source (TDS) is properly recorded and accounted for when calculating an employee's total tax liability for the financial year.
It adjusts the tax liability by subtracting the declared TCS (Tax Collected at Source) and TDS (Tax Deducted at Source) amounts from the total tax liability for the financial year.
Example:
Total Tax Liability: ₹1,00,000
Declared TCS: ₹10,000
Declared TDS: ₹20,000
After adjustment:
Remaining Tax Liability = ₹1,00,000 - ₹10,000 - ₹20,000 = ₹70,000
The adjusted amount is then used to calculate the monthly tax deductions, ensuring employees pay only the remaining liability through payroll deductions.
Looking for More Support?
Find answers and insights across our resources. Refer to our detailed Knowledge Base for in-depth articles, explore our practical video guides, and stay informed with our latest product updates.
Want to explore more features on greytHR? Talk to Us!
Was this article helpful?
That’s Great!
Thank you for your feedback
Sorry! We couldn't be helpful
Thank you for your feedback
Feedback sent
We appreciate your effort and will try to fix the article