04 August 2010
Dear Sir, one of worker of our company has intimated us not to deduct TDS from his salary because of he has some other business in that his customer already deducted TDS more than the income tax payable by him. my question is we have to get any letter or form from him.
04 August 2010
NO, YOU HAVE TO DEDUCT TDS ON SALARY. BECASUE IF THER PERSON HAVE OTHER INCOME ON WHICH TDS IS DEDUCTED, THEN SUCH OTHER INCOME IS ALSO PART OF HIS GROSS TOTAL INCOME ON WHICH ALSO TAX LIABLITY ARISES.
YOU CAN TAKE FORM16 FORM HIM AND CONSIDER INCOME AS OTHER INCOME AND TDS FOR TDS CALCUATION PURPOSE. BY THIS WAY, TDS LIABLITY WILL BE MORE BECASUE TDS IS DEDUCTED BY CUSTOMER ON 2% OR 10% WHILE NOW IT WILL BE TAXED AT AVERAGE RATE OF TAX. NOW YOU CAN DEDUCT TDS ON IT.
04 August 2010
Agree.. income from salary has to treated separately for TDS purpose.
Had there been salary income from past employer as well during the same financial year then the TDS deducted by such past employer is to taken into consideration while calculating the present TDS on salary.
Tax deducted on other heads are to be treated separately for TDS purpose.
CAclubindia
