TDS in Payroll

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Every month, when salaries are processed, your payroll system checks the employee’s income and applies the applicable tax rate. That tax amount — TDS — is deducted before payout and sent to the government.

At the end of the year, HR issues Form 16 to each employee — it shows how much tax was deducted and when. It’s needed for ITR filing. Manually handling TDS is risky — all it takes is one missed deadline to invite penalties. That’s why most Indian businesses use payroll software that automates the math, deadlines, and reporting.

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