Tds on salary

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

24 August 2011 A pvt ltd company pays Rs.280000/- to one of his employee.The employee Invests Rs.1lac in prescibed avenues as per Sec80 of the I T Act like LIC,PPf,NSC,ELSS etc.He produces all the documentary evidence to the Company.Is the Company liable to deduct TDS on salary of that Employee.Pls advise.

CA Ashwani Agarwal

CA Ashwani Agarwal (Expert)
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24 August 2011 As the minimum exemption limit from the next year is 180000. Therefor no need to deduct tax.

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CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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24 August 2011 Since the Income is not crossing tax exemption limit of Rs 180000/-. No need to deduct TDS.

Out of Rs 2.8 lacs,1 lac is investment u/s 80C and 1.80 lac is basic exemption. Therefor tax liability is nil and so no need to deduct TDS.

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