05 May 2010
Can anyboby tell me that while caclculating taxable income & tds of employees of our company, Should i take proofs of rent paid, lic payments, loan repayments etc. or on the basis of declaration given by them in a structured format.Some employees are saying to me that they will give declaration only but will not provide proof.
05 May 2010
You should take proof before making the final tax liability. Though in the beginning of the year, you can take declaration and the proof can be submitted later on as and when the proofs are available. For example an employees may have LIC premium payable in December, he can provide the proof only in December after making the payment, But for the declared amount you should collect the proofs before 31.03 of the FY.
05 May 2010
Agreed with experts. At the starting of financial year, declaration for proposed investment & expenditure i.e rent paid etc is to be taken from employees. Before the end of Feb of that financial year , you have to collect documents related to such declaraton ,if these are mismatch, then you can deduct TDS from the salary of Feb & March .
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