Tax Deduction Slab
The tax deduction slab is a specific limit that can be applied to income from various sources. In most cases, you can claim up to 30 percent of your salary as a tax deduction. However, if you are a contractor or vendor, you can claim up to 40 percent of your salary as a tax deduction. This is because you only pay 10 percent tax at the source, and you can decide whether or not the rest is taxable.
The income tax deduction slabs for companies, professionals, and self-employed individuals vary. For example, individuals earning Rs. 85,000 per month can claim up to Rs. 40,000 per month as a tax deduction. However, individuals earning more than Rs. 40,000 per month may not be eligible to claim this deduction.
The tax deduction slab is based on the state in which you live and work. For example, if you live in West Bengal, you can claim up to Rs. 90 per month if your monthly salary exceeds Rs. 8500. In Andhra Pradesh, however, you can claim up to Rs. 200 per month if your monthly salary exceeds Rs. 20,000 per month.