11 August 2010
Dear Sir, One of our employee withdraws 24200 as gross salary., 800 as conveyance allowance. Now we have to deduct the TDS. He is telling to us that how you are dedcuting the TDS since how I can decide the investment before?. Now on what basis we will do ? Is we have deduct the TDS at the end or else from initial. please describe the complete procedure for this sceanrio.Also please calculate the TDS working for him assuming no investment done by him
11 August 2010
First of all demand from the all employee Declaration for Investment in FY 2009-10
Then feed the data of salary and investment declared by employee in excel file which you can get from belwo link.
All investment proofs must be submitted by employee till 31st Jan of Financial year, if he falls to submit then tds deducted in balance month by taking actual investemnt for which he has submit proof.
11 August 2010
Take an investment declaration from the employee for the whole financial year.
Calculate the estimate salary & tax thereon for the whole year (On the basis of his salary & investment declaration).
Divide the Tax by 12. suppose total estimated salary is 12000/- so dividing it by 12 gives 1000/-
Deduct this 1000/- tax per month.
If does not give you any investment declaration, follow the above process & do it accordingly.
Remember.. you need to collect the actual proof of investment almost 2 months before the expiry of the financial year. AND, after such collection you will have to re-calculate the tax liability based on such proofs.
11 August 2010
Thanking you very much to reply to my query. He is telling that he will present the investment decalaration soon . So till date time I should not deduct the TDS. Is it correct ? Thanks & Regards
13 August 2010
No,now 4 months has already passed, hence demand Investment declaration asap and caculate tax liablity according to this. Otherwsie if salary exceeding Rs.160000 PA , then deduct tds on avearge base without considering deduction.
CAclubindia
