Compute for this month: By selecting this option the tax will be computed based on the earnings and IT declaration of the employee. 


Use previous months' TDS

By selecting this option tax will be deducted as per the preceding month.  This option will not be available in March.


Consider zero TDS: When you select this option, the tax for the month will not be deducted. Since there is no Income Tax deduction, you will not have an override option.  This option should not be used during the year-end payroll i.e., March. 



You can override Income Tax provided you have selected the Income Tax Calculation type as “Compute for the month” and "Use previous month's TDS". 

Tax cannot be overridden if 'Consider Zero TDS' is chosen.


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