Dec 16, 2024
The maximum annual salary that can be paid to an individual without triggering Tax Deducted at Source (TDS) in the financial year 2024-25 depends on the person's age and residential status.
Here’s a breakdown based on these factors:
For Individuals Below 60 Years of Age
Resident Individuals:
The annual income exempt from taxation is up to ₹2.5 lakh. However, this is only the starting point. Additional factors such as the standard deduction, House Rent Allowance (HRA) exemption, and other eligible deductions can further lower the taxable income, potentially raising the salary threshold where TDS is not required.
Non-Resident Individuals:
The initial tax-free income threshold is also ₹2.5 lakh. However, non-residents may not be eligible for certain deductions that are available to residents, such as HRA exemptions.
For Senior Citizens (60 to 79 Years Old)
Resident Senior Citizens:
The basic exemption limit increases to ₹3 lakh. Similar to residents below 60, various deductions can reduce taxable income, potentially allowing higher salaries to be paid without TDS.
For Super Senior Citizens (80 Years and Above)
Resident Super Senior Citizens:
The starting point for tax exemption is even higher at ₹5 lakh, offering significant relief. Deductions can further reduce taxable income.
Key Considerations
Tax Regime Selection:
The salary threshold for TDS can vary depending on whether the individual opts for the old tax regime (with exemptions and deductions) or the new tax regime (with lower tax rates but fewer exemptions).
Deductions and Exemptions:
Factors such as investments under Section 80C, standard deductions, and HRA can significantly impact the taxable income, altering the TDS applicability threshold.
Conclusion
The basic exemption limits provide a starting point for determining the salary limit without TDS deduction. However, the actual threshold depends on individual circumstances, deductions claimed, and the tax regime chosen.
For precise guidance tailored to your situation, it is always recommended to consult a qualified tax professional.
Please note: The content of this blog is provided for general informational purposes only and does not constitute legal, financial, or professional advice. While every effort has been made to ensure the accuracy and reliability of the information presented, Unpaper makes no representations or warranties, express or implied, regarding the completeness, accuracy, suitability, or availability of the content for any purpose.
Unpaper shall not be held liable for any errors, omissions, or inaccuracies in the content, nor for any losses, damages, or consequences arising from the use of or reliance on the information provided. Readers are encouraged to seek independent legal or professional advice before making decisions based on the material contained herein.
The content may include references to laws, rules, or regulations subject to change, and Unpaper does not guarantee the currency or continued accuracy of such information. Use of this blog and any reliance on its content is at the reader's own risk.