Salaried Employees May See Higher TDS in Final Quarter Due to Tax Regime Adjustments

Salaried employees, particularly those under the old tax regime, may experience a significant increase in Tax Deducted at Source (TDS) during the final three months of the financial year (January-March). This occurs as employers recalculate final tax liabilities based on verified investment proofs submitted by employees. Initially, TDS is estimated based on declared investments, but the year-end adjustment accounts for actual savings and expenses, leading to potential higher deductions if planned investments were not fully realized.