Tds

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 June 2015 Dear Sir,

I need to know few things about TDS.
This is the first time we are planning to deduct TDS from an employee who is receiving a Gross Salary of 27,500/-pm through Bank. Our Tax Consultant said us that we need to deduct Tax on it and that we need to submit the same every month 7th.
Now what my query is while deducting tax should we exempt his monthly Rent i.e., 6000/-, Life Insurance(QuarterlY) 2,200/-, Metlife Insurance 1472/-pm and then calculate the TDS for the remaining amount after Slab of 2,50,000/-
What my confusion is if we deduct all these then he will not be eligible for Tax/TDS....

Kindly go through my calculation and correct me.
Exemptions:
LIC 2,200 X 4 Qrtly = 8,800/-
Met Life 1,472 X 12 = 17,664/-
Rent 6,000 X 12 = 72,000/-
Total = 98,464

Gross Payable Salary
27,500 X 12 = 3,30,000p.a

Upto 2,50,000 Tax Exempted
so 3,30,000 - 2,50,000 = 80,000/-
If we deduct Exemptions then the balance will be nil or negative.

Kindly help in this regards.

With Thanks & Regards

CA Mohit Bansal

CA Mohit Bansal (Expert)
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06 June 2015 No tax is deductible from the salary of your employee as his/her total income is below exemption limit. Please reconfirm from your tax consultant as there is no need of deduction of tax

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Querist : Anonymous

Querist : Anonymous (Querist)

06 June 2015 Dear Mohit,

I appreciate for your quick response and thanks you in this regards.
You mean to say that I neednot to deduct any amount and I need not to file any TDS. Right..

Is that Because of the deduction like Rent, Insurance is done. Kindly confirm me the same too.

Thank You Sir

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CA Mohit Bansal

CA Mohit Bansal (Expert)
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06 June 2015 Yes. This is because of all the deductions and exemptions. When the assessee is not liable for any income tax liability how can you deduct the same

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