05 May 2010
Dear Sir, Please tell me what is processor of deduction of tds in case of salary. what is limit of deduction of tds from salary and which time we will less exemption from salary at the time of deduction of tds or at the time of prepare tds certificate. how we will prepare tds certificate for salary. Please explain with examples.
05 May 2010
TDS from salary will be deducted on the basis of the tax slabs applicable for the Individual. The estimate of the Total Income of the employee will be calculated based on his salary and any other income declared by him and after applying the tax provisions the tax liability for the year will be estimated. Then the TDS will be deducted on monthly basis. There is no limit for TDS Deduction. It is deducted as per the total income estimate of the individual. For isuuing TDS Certificate, employer has to provide Form 16 at the end of the year to the employee on which basis the employee can file his return.
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