23 April 2010
Tax on Salary is deducted only when Salary is Taxable.
If Tax is deducted as and when Salary was taxable and later on after investment u/s 80C or others, Taxable salary reduced to below taxable limit, than tax on salary which was deducted from employee's salary is refundable only when the assessee files his/her return in proper manner and as per law.
23 April 2010
In your case, salary is below taxable limit after considering exemption limit and investment in LIC. So no need to deduct withholding tax on salary.
If tax is deducted by the employer, She can claim for refund.
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