07 November 2012
a service provider company can deduct tds on his employees salary? how much?
Guest
Guest
(Expert)
07 November 2012
employer has to ensure that after deducting tax there would be no tax payable by employees. it means if salary of employee is Rs. 180000/- other income reported by employee Rs. 50000/-
so gross total income will be Rs.230000/- and deduction under chapter VI-A is Rs.20000/- so total income will be Rs.210000/- so tax payable would be (210000-1900000 20000*10.3= 2060
so employer has to deduct TDS in each month equally i.e.2060/12= 172/- so that at end of F.Y there is no liabilty of Income Tax would remain
CAclubindia
