₹12.8 lakh CTC, ₹95,000 in hand
TaxSavvy for salary slip
Your salary slip, explained line by line.
We decode every component and show what to restructure to save tax.
What you send
Any one of these gets us started. Photos are fine.
- Form 16
- Salary slip
- AIS or 26AS
- Bank statement
Send them on WhatsApp or upload after you start. Documents are encrypted and seen only by your CA.
How we get it done
Four steps, the same for every job. You see each one ticked.
Information
PAN. Form 130 (old Form 16), last year
Discussion
Which components can HR change?. Reimbursements claimed with bills?
Forms
Map each line: taxable / exempt / deduction. TDS on payslip vs projected tax
Deliverables
Decoded payslip sheet. HR ask-list
See what you get, free
Real formats, made with dummy data.
Sample Sample ₹1,747 more a month, same CTC
Sample ₹21,300 left every month
Questions, answered the CA way
Facts, Provisions and law, Analysis, Conclusion.
TDS on Salary: Section 392 (old 192)
- Facts
- The most voluminous TDS in India, every employer deducts on estimated annual salary. Most errors in TDS happen here: wrong regime, missed deductions, dual employment.
- Provisions and law
- Sec 392 (old 192); Sec 392 (old 192(2)); Sec 392 (old 192(2B)); Form 124 (old Form 12BB); Sec 204, 201 (now 398)
- Analysis
- How salary TDS is computed: Step 1, Estimate gross salary for full year. Step 2, Add any other income declared by employee (Form 124, old Form 12BB). Step 3, Deduct loss from house property if declared. Step 4, Deduct allowances (HRA, LTA to extent exempt). Step 5, Deduct Sec 123/126, Income-tax Act 2025 (old Sec 80C/80D) etc. if old regime. Step 6, Compute tax on net income. Step 7, Divide by 12 months remaining = monthly TDS. Common employer errors: (1) Default to new regime without checking employee's declaration. (2) Not collecting Form 124 (old Form 12BB), missing HRA and home loan deductions. (3) Not aggregating other employer salary in job-switch year. (4) Not giving effect to Sec 392 (old Sec 192(2B)) house property loss declaration. Employee duty: Submit Form 124 (old Form 12BB) with proofs by February 28 each year. Declare other income/loss if applicable. If employer TDS seems wrong, check payslip and Form 130 (old Form 16) mid-year.
- Conclusion
- Employee submits Form 124 (old Form 12BB) by April (start of year), regime declaration, HRA, home loan, Sec 123 (old Sec 80C) estimate
- Employer updates payroll software with regime and deduction inputs
- Monthly TDS computed on estimated annual income, deducted each month
- If employee joins mid-year, collect Form 122 (old Form 12B; previous employer income) and aggregate
Form 130 (old Form 16): Part A and Part B Decoded
- Facts
- Form 130 (old Form 16) is the salary TDS certificate, the most important document for a salaried person's ITR. Most employees receive it but don't know how to use it. Part A shows TDS deposited with the government. Part B is the salary breakup prepared by the employer. Errors in Form 130 (old Form 16) cause ITR mismatches and demands.
- Provisions and law
- Sec 395(4) (old 203); Rule 215 (old Rule 31); TRACES system; Sec 392 (old 192(2B))
- Analysis
- Form 130 (old Form 16) Part A, what to check: (1) Employer TAN must match what's in your Form 168 (old Form 26AS). (2) Your PAN must be correct. (3) TDS amount quarter-wise must match your Form 168 (old Form 26AS) and AIS. (4) "Amount paid / credited" = your gross salary for each quarter. (5) If employer changed TAN mid-year (company restructuring): multiple Part As may exist. Form 130 (old Form 16) Part B, the salary breakup: Shows: Basic salary, HRA, special allowance, LTA, bonus, perquisites. Deductions: Sec 123, Income-tax Act 2025 (old Sec 80C) investments, Sec 126 (old Sec 80D) health insurance, home loan interest (24b), standard deduction ₹75K. Taxable salary after deductions. TDS schedule with advance tax if any. This is what flows into your ITR Schedule S (Salary) and should match your AIS salary figure. Common Form 130 (old Form 16) errors: (1) Old investments not included in Part B (employer didn't update after you submitted Form 124 (old Form 12BB)). (2) HRA exemption computed wrong (wrong city classification).
- Conclusion
- Receive Form 130 (old Form 16) from employer by June 15 (if not received: email HR immediately)
- Check Part A: TAN, your PAN, period of employment, TDS figures, match with Form 168 (old Form 26AS)
- Check Part B: salary breakup is complete, Basic, HRA, allowances, perquisites, bonus
- Verify deductions in Part B: Sec 123, 126, 22(1)(b) (old Sec 80C, 80D, 24(b)), NPS Sec 124 (old Sec 80CCD(2)), standard deduction ₹75K
NPS Tier 1: 80CCD(1B) ₹50K Extra + Sec 124 (old 80CCD(2)) Employer
- Facts
- NPS gives you TWO deductions unavailable from any other source: ₹50K extra over the Sec 123, Income-tax Act 2025 (old Sec 80C) limit via 80CCD(1B), and employer contribution deduction via Sec 124 (old Sec 80CCD(2)), available in BOTH old and new regime. Together they save ₹15,600 to ₹44,100 in annual tax with zero personal investment cost for the employer portion.
- Provisions and law
- Sec 124 (old 80CCD(1)); Sec 80CCD(1B); Sec 124 (old 80CCD(2)); Sec 202 (old 115BAC(2)); PFRDA Regulations
- Analysis
- The two NPS deductions, completely different: 80CCD(1B) = YOUR OWN contribution to NPS, extra ₹50K beyond 80C, old regime only. Sec 124 (old Sec 80CCD(2)) = EMPLOYER contribution to your NPS account, deducted from your taxable salary, both regimes. Most people confuse the two. You can have both if you are salaried. Sec 124 (old Sec 80CCD(2)), how to activate it: Step 1: Open NPS Tier 1 account (eNPS portal or employer HR). Step 2: Get PRAN number. Step 3: Email HR: "Please activate NPS employer contribution at 14% of my basic salary under Section 80CCD(2) and restructure my CTC accordingly." Step 4: HR restructures payslip, NPS employer line appears. Step 5: Form 130 (old Form 16) Part B shows Sec 124 (old Sec 80CCD(2)) deduction. Net effect: same CTC total, but ₹X thousand now goes to NPS instead of special allowance (which was fully taxable). Real numbers, basic salary ₹80,000/month: 14% NPS employer = ₹11,200/month = ₹1,34,400/year.
- Conclusion
- Check if you have NPS Tier 1 account, if not, open at eNPS portal (enps.nsdl.com)
- For 80CCD(1B): contribute ₹50,000 to NPS Tier 1 by March 31 each year
- For Sec 124 (old Sec 80CCD(2)): request employer HR to activate and restructure CTC (one-time email)
- Verify payslip: NPS employer contribution line should appear
PMS fees: management fee, performance fee, and their tax deductibility
- Facts
- PMS typically charges: Management fee (1-2% of AUM annually) + Performance fee / profit sharing (10-20% of profits above a hurdle rate, typically 10%).
- Provisions and law
- IT Act, Sec 72 (old 48; cost of acquisition) | CBDT Circular
- Analysis
- Tax deductibility: Management fee and performance fee incurred in connection with earning capital gains are deductible from capital gains under Sec 72, Income-tax Act 2025 (old Sec 48) as "expenses incurred wholly and exclusively in connection with the transfer." This is contested, the IT department has tried to disallow these. Courts have generally allowed them, but it remains a risk area. Best practice: Ensure the PMS gives you a detailed fee breakup in the annual statement. Claim fees as deduction from capital gains, not as a business expense.
Your salary slip, explained line by line.
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