Tds on salary

This query is : Resolved

CA Prabhat Kumar Makhija (Querist)
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31 May 2012 Suppose Mr. X joins a company a on 1/7/2011 on a salary of Rs. 20,000/- p.m. and after 3 months i.e. 1/10/11, his salary increases to 30,000/- p.m. So what amount of TDS a company will deduct on his salary for the A/Y 2012-13?
Please answer with full calculations.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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31 May 2012 The total income of the employee comes to Rs. 2,40,000.

Assuming there are no deductions and exemptions, the tax liability comes to Rs. 6,180. This amount has to be deducted every month in the form of TDS.

TDS per month comes to Rs. 687.

CA Prabhat Kumar Makhija

CA Prabhat Kumar Makhija (Querist)
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31 May 2012 But at the time of joining his estimated annual income would be 1,80,000/-. So how can we deduct TDS at that time on per month basis?

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CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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31 May 2012 Yeah you are right. So TDS will be deducted from Oct onwards.

Rs. 1,030 per month.

CA Prabhat Kumar Makhija

CA Prabhat Kumar Makhija (Querist)
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31 May 2012 Whether any interest would be levied for not deducting TDS for a period of 3 months from 1/7/2011 to 30/9/2011.