Sanjeev Pati (Accountant) (250 Points)
11 December 2018Dear all,
I am employer and i have to deduct TDS on salary of an employee... I am confused at which amount TDS will be deducted.
I give an employee to Salary Rs. 20000/- P.M (i.e 2,40,000/- in year) + Incentive Rs. 50,000/- & Bonus - 28,000/- …Total amt paid to employee is 318000/-
I want to know at which amount TDS will be deducted… (TDS will be deducted or not becoz salary is below 250000/-)
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177736 Points)
Replied 11 December 2018
TDS will not be deductible because of standard deduction and rebate u/s. 87a effect....
Sanjeev Pati
(Accountant)
(250 Points)
Replied 11 December 2018
Sir that means if i will pay Salary more than Rs. 2,50,000/- then i have to deduct TDS... (in Incentive & Bonus no TDS will be deducted)
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177736 Points)
Replied 11 December 2018
Wrongly interpreted, dear......
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177736 Points)
Replied 11 December 2018
While talking about Tax calculations, the first thing comes up in this context is the tax deductions and exceptions that are available in the Indian Tax return contexts. Both deduction and exemption of taxes are the ways to lower the tax burden and give some benefits to the people.
There will be certain standard tax exemptions allowed by the Government of India. While computing TDS for the salary, these exemptions are deducted first from the total annual salary as per specification of Income Tax Department of India. Then tax is calculated on the non-exempt part of annual income. There are several provisions by Income Tax Department of India regarding availing tax exemptions. The employees need to submit those proofs of exemption along with the declaration to their employers so that TDS could be computed properly. Employer is responsible for computation of TDS based on the proofs and declaration, deducting the taxes from salary and depositing those with the authority.
Sanjeev Pati
(Accountant)
(250 Points)
Replied 11 December 2018
| Originally posted by : Sanjeev Pati | ||
 |
Dear all, I am employer and i have to deduct TDS on salary of an employee... I am confused at which amount TDS will be deducted. I give an employee to Salary Rs. 20000/- P.M (i.e 2,40,000/- in year) + Incentive Rs. 50,000/- & Bonus - 28,000/- …Total amt paid to employee is 318000/- I want to know at which amount TDS will be deducted… (TDS will be deducted or not becoz salary is below 250000/-) |
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Sir, i would like to know in this case what will be the amount of TDS which i have to deduct of an employee.
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177736 Points)
Replied 11 December 2018
Sir, i would like to know in this case what will be the amount of TDS which i have to deduct of an employee.
Rs. 3,18,000 --- SD Rs.40000/-........ = Rs. 2,78,000/-
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177736 Points)
Replied 11 December 2018
Net tax liability after rebate u/s. 87a of Rs.1400/- will be Nil...
Sanjeev Pati
(Accountant)
(250 Points)
Replied 11 December 2018
Sir Thank you.... but i want to know how do you calculate the SD (Standard Deduction) amount of Rs. 40000/- from 318000/- total amount.
S ELAVARASI
(ACCOUNTANT)
(2975 Points)
Replied 11 December 2018
| Originally posted by : Dhirajlal Rambhia | ||
|
Sir, i would like to know in this case what will be the amount of TDS which i have to deduct of an employee. Rs. 3,18,000 --- SD Rs.40000/-........ = Rs. 2,78,000/- |
|
Dear Sir.,
At the time of Calculation / filing ITR Where will be show the SD amount...?
Dhirajlal Rambhia
(SEO Sai Gr. Hosp.)
(177736 Points)
Replied 11 December 2018
U/s. 16(ia) of IT act (Note: New ITR forms for AY 2019-20 will be amended accordingly.)
For your reference the section is reproduced hereunder::
Deductions from salaries.
16. The income chargeable under the head "Salaries" shall be computed after making the following deductions, namely :—
(i) [***]
Following clause (ia) shall be inserted after clause (i) of section 16 by the Finance Act, 2018, w.e.f. 1-4-2019 :
(ia) a deduction of forty thousand rupees or the amount of the salary, whichever is less;
(ii) a deduction in respect of any allowance in the nature of an entertainment allowance specifically granted by an employer to the assessee who is in receipt of a salary from the Government, a sum equal to one-fifth of his salary (exclusive of any allowance, benefit or other perquisite) or five thousand rupees, whichever is less;
(iii) a deduction of any sum paid by the assessee on account of a tax on employment within the meaning of clause (2) of article 276 of the Constitution, leviable by or under any law.
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