How to disable TDS for a salary structure

TDS (Tax Deducted at Source) is a method of tax collection used by the Government of India. Under this system, a certain percentage of tax is deducted at the time of making payments such as salary, interest, commission, rent, or professional fees.

TDS is deducted as per the income tax slab rates and helps the government collect tax revenue in advance rather than at the end of the year.

The payer deducts the tax and deposits it with the government. The recipient can then claim this deducted amount as credit against their total tax liability when filing Income Tax Returns.

How to Disable TDS for a Custom Salary Structure

TDS is not applicable to all income groups or transactions. While range-based salary structures do not allow disabling TDS, you can disable it for custom salary structures by following these steps:

Steps to Disable TDS in Keka

1. Go to Payroll → Settings.

2. Click on Pay Groups.

3. Choose your Pay Group (if multiple are configured).

4. Click on the Configure icon next to it.

   

5. In the next window, click on Salary Structures.

6. From the dropdown, select Custom Salary Structure.

7. Use the search bar to find the salary structure by name.

8. Click the Edit icon next to it.

   

9. In the Update Custom Salary Structure window, scroll to Configure PF, ESI and TDS for this structure.

10. Toggle off the switch for Tax Deducted at Source (TDS).

11. Click Update to save your changes.