The TDS on your slip each month is based on what?

The investment declaration you gave HR in April — an estimate, not a final bill

The exact tax you owe, recalculated from scratch every month

You declared ₹1.5 lakh of 80C (now section 123) investments in April and made none of them. What happens?

You owe the difference when you file — with interest if the shortfall is large

Nothing — the declaration is a formality HR keeps on file

Your employer absorbs the shortfall at year end

Lesson 2 of 2 · 6 min

Three things to do in your first month

Activate your UAN and check PF is actually landing, declare investments honestly so March holds no surprise, and know your real in-hand before signing for rent.

Put these in order

Put these in the order that matters most in month one.

Set up a small automatic transfer on payday
Give HR an honest investment declaration
Work out your real monthly in-hand
Activate your UAN and check PF is actually being credited

Professional tax is levied by your state, not the Centre, and is constitutionally capped at ₹2,500 a year. Some states levy none at all, which is why a colleague in another city sees a different deduction.

Check yourself

1 / 3

Kabir asks

Why does activating your UAN come first in month one, ahead of everything else?

Done reading?

Saved in this browser — and finishes the course.