Michelle (Service) (297 Points)
28 February 2018An employee is entitled to consolidated salary Rs. 30000 pm. If he takes leaves during a month, salary gets deducted and assume in such case for 1 month he gets only Rs. 20000 pm. No leave encashment benefits.
While calculating total tax on salary at the end of the year, do we consider Rs. 30000 or Rs. 20000 as his salary?
Divakar
(Student CA Final )
(11857 Points)
Replied 28 February 2018
Bharath Soni
(Chartered Accountant)
(108 Points)
Replied 28 February 2018
Michelle
(Service)
(297 Points)
Replied 28 February 2018
TDS gets deducted from 1st month of the year. At that point we can only take gross salary due as we wouldn't know how much the employee would get in hand in the later months. He is due to earn 30000 pm. Salary is taxed on due basis.
Please correct if wrong
Divakar
(Student CA Final )
(11857 Points)
Replied 28 February 2018
Divakar
(Student CA Final )
(11857 Points)
Replied 28 February 2018
Neha sharma
(-)
(1257 Points)
Replied 28 February 2018
Rs. 20,000 would be considered as his Salary and tax would be levied on Rs. 20,000
CAclubindia
