23 September 2010
Mr A worked with X Ltd for first six month of FY 2010-11 having 300000 as taxable salary and resigned.
X Ltd has deducted tds upto date Rs. 11000 now upon finalising full & final settlement what amount of TDS should be deducted as balance over and above Rs. 11000. What will be total TDS of Mr A for X Ltd.
X Ltd is deducting Rs. 3000 as balance tds i.e. total TDS will be Rs. 14000. Is it correct or ANNUAL PROGRESSION or higher rate of 30% on taxable salary of Mr A is applicable.
Please give supporting provisions / circular under Income Tax Act
23 September 2010
Deduct TDS on whatever amount is paid by you during the term of his employment with you and not on annual salary i. e. TDS be deducted on salary actually drawn by him less any exemptions and deductions.