Tds on salary

This query is : Resolved 

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.

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.

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?


31 May 2012 Yeah you are right. So TDS will be deducted from Oct onwards.

Rs. 1,030 per month.

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.

31 May 2012 No Prabhat. No interest is leviable.

31 May 2012 Interest will not be levied because the employer was not liable to deduct TDS during those 3 months.



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