19 December 2015
Mr. X worked in a company form 01.04.2015 to 31.10.2015 i.e. 7 Months. During this period he received Basic Salary Rs. 30000/- P.M., HRA Rs.7500/- P.M. and LTA Rs. 6000/- P.M. His total earning for that period is Rs. 304500/-. He submitted proof of investment u/s 80 C for Rs. 60000/- to the employer. Now the question is :- 1. whether the employer is required to deduct TDS on salary assuming that Mr. X will earn same salary for the next 5 month 2. whether company can give full exemption of Basic limit of Rs. 250000/- or it should be reduced to Rs. 145833/- on pro rata basis.
19 December 2015
For Calculating Tds you can take entire Rs.250000/- Exemption So He will not come under Tax Purview , If he gets any Income After 01st November He has to Declare and has to discharge Tax.