VP Singh (Sr Executive (Taxation)) (44 Points)
01 July 2011My employer is deducting TDS from salary at higher rate i.e. more then average of the aggregate tax liability. Below is, one example :-
Gross Annual Salary : Rs. 750000
Paid upto Jun'11 : Rs. 300000 and Projected for remaining 9 months Rs. 450000
Deduction and Exemptions : Rs. 140000 & Taxable Income Rs. 610000
Tax Payable Rs. 54590/- TDS deducted upto Jun'11 : Rs. 34000
Is there any remady available to employee suffering ?
Dipjyoti Majumdar
(CA in service & CS. dipmaj@ rediffmail.com )
(3468 Points)
Replied 01 July 2011
Mr. Singh
Have you submitted proof for your deductions/exemptions or just given a declaration.
It is likely that after you submit those, the deduction amount will reduce and accordingly the average rate will be arrived.
please coem back in this forum if you have any other views
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 01 July 2011
| Originally posted by : VP Singh | ||
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My employer is deducting TDS from salary at higher rate i.e. more then average of the aggregate tax liability. Below is, one example :- Gross Annual Salary : Rs. 750000 Paid upto Jun'11 : Rs. 300000 and Projected for remaining 9 months Rs. 450000 Deduction and Exemptions : Rs. 140000 & Taxable Income Rs. 610000 Tax Payable Rs. 54590/- TDS deducted upto Jun'11 : Rs. 34000 Is there any remady available to employee suffering ? |
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query itself is misleading, if annual remunaration is 7.5L then it should be divided in equated 12 installments, but you got 3 lacs in 1st 3 months.
You are not employed there, but appointed as "contract professional" on which the company is deducting TDS u/s 194J @ 10%, in this section the company will not consider the threshold limit, 80C dedcuction etc, but you have to file your own ITR
you have to discharge your liability of profession tax by self, and servicetax also if appliable ( above 10L)
praveen
(Chartered Accountant)
(6971 Points)
Replied 01 July 2011
Yes I also feel that it might be strong case that they are deducting tax under 194J & not under Salary.
Please tell us whether you have a employee-employer relationship or contractor - contractee releationship.
If at all what you have provided is correct then they cannot deduct at higher rates.Remedy would be to demand the company for interest on the excess amount deducted by them.
VP Singh
(Sr Executive (Taxation))
(44 Points)
Replied 01 July 2011
I think below additional information also required to remove some confustion over payout ratio :-
CTC of Rs.7.5L include Rs.1.5L lumpsum payment on account of Bonus, LTC encashement & EL encashment, which is paid out during 1st quarter only. Balance CTC of Rs. 6 L is equated into 12 @ 50k P.M.
With this 1st quarter payout amount to Rs. 3 L and balance 3 Quarter's payout Rs.4.5L
The relationship is purely permanent employee-employer and based on the investment declaration, Rs.1.4L as I mentioned, is already accpeted by employeer as deduction & exemptions.
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 01 July 2011
i request you to recheck the status, if employer/empoyee relation is maintained then Profession tax deduction mandatory, EPF is also obligatory ( not mandatory)
EL /LTCcan not be encashed in advance, i feel strongly that its jeoparty of language by employoer to fix the employee under contract by paying such named amounts in advance to book him under contract.
CA. MANAL CHAWLA
(CA + CS Professional)
(566 Points)
Replied 01 July 2011
First tell your PAN No. to ur employer if you not given till than requested him please deducted tax as per income tax rules and adjust balance tax which will be payable by in future payment only balance due amount
Mukesh Kumar Singh
(CA-FINAL)
(4094 Points)
Replied 01 July 2011
| Originally posted by : Manal Kumar | ||
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First tell your PAN No. to ur employer if you not given till than requested him please deducted tax as per income tax rules and adjust balance tax which will be payable by in future payment only balance due amount |
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Agreed.
srinivass
(CA Final)
(2466 Points)
Replied 01 July 2011
| Originally posted by : Manal Kumar | ||
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First tell your PAN No. to ur employer if you not given till than requested him please deducted tax as per income tax rules and adjust balance tax which will be payable by in future payment only balance due amount |
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C.A SHASHANK GOYAL
(Chartered Accountant)
(362 Points)
Replied 03 July 2011
Hi everyone , for deduction of tax at lower rate you have one remedy available , you must be having one self - occupied house property in your name and must be interest for loan on such property and claiming the deduction for the same u/s 24(b) , and resulting in loss u/h house property , furnish this loss to your employer and he will take into consideration such loss while deducting TDS.
Another point to be taken into consideration that no loss any other head except from house property as explained above can be furnished.
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