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Salary tds.

asru.j (na) (98 Points)

06 August 2013

Dear Sir,

I used to calculate salary TDS for the employees and recently I am facing a problem with Donations (u/s 80G) made to some Trust or Association where 50% exemption is allowed. My CA has instruct not to consider any Donation for computing TDS and let the employee claim their exemption while filing return,.Now the problem is if an employee genuinely donated to some legitimate organisation say CINNI or Safe the Children or may be dealing with Uttrakhand victims and they need not have to file their Return as per the prevailing Law that filing of Return is not mandatory upto the Income of Rs. 5 Lac. In this circumstances if I do not consider their Donations as Tax savings instrument then will it not be considered as discouraging people to donate. Kindly advise.

Thanks & regards

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6 Replies

Deepak Gupta (CA Student) (15922 Points)
Replied 06 August 2013

Originally posted by : asru.j
	Dear Sir, I used to calculate salary TDS for the employees and recently I am facing a problem with Donations (u/s 80G) made to some Trust or Association where 50% exemption is allowed. My CA has instruct not to consider any Donation for computing TDS and let the employee claim their exemption while filing return,.Now the problem is if an employee genuinely donated to some legitimate organisation say CINNI or Safe the Children or may be dealing with Uttrakhand victims and they need not have to file their Return as per the prevailing Law that filing of Return is not mandatory upto the Income of Rs. 5 Lac. In this circumstances if I do not consider their Donations as Tax savings instrument then will it not be considered as discouraging people to donate. Kindly advise. Thanks & regards

NO MORE EXEMPTION FROM RETURN FILING FOR SALARIED TAXPAYERS HAVING TOTAL INCOME UPTO RS. 5 LAKHS.
[PRESS RELEASE, DATED 22-7-2013]

Extracts:-
.
The CBDT vide its earlier notifications had exempted salaried employees having total income upto Rs. 5 lakhs including income from other sources upto Rs. 10,000/- from the requirement of filing return of income for A.Y. 2011-12 and 2012-13 respectively.
.
The exemption provided during the last two years is not being extended for A.Y. 2013-14 on the ground that, facility for online filing of returns has been made user-friendly with the advantage of pre-filled return forms.

Attached File : 555789 1215815 press release.pdf downloaded: 207 times

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Swami Ayyappa Nuli (TAX ADVISOR & CONSULTANT AT G.S.T SUVIDHA CENTER) (1372 Points)
Replied 06 August 2013

Hi asru.j,first u should notice one thing,TDS will not increase or decrease ur Tax incidence and its just paying of taxes early by the payer on account of Payee,even in this case payee is bearing tax liability.if you dont consider Donations as per instruction of ur C.A ,u may deduct High amount of T.D.S but ultimatly payee can take credit of entire T.D.S deducted by you at the time of filing his returns.so it may not discourage ur employee, and i think u thought that if we dont consider such deductions, even though he can take entire credti of TDS paid but it is on long run basis i.e at the time of return filing u r correct!

Intimate me once ur doubt has cleared.thank you

manoj (student) (5205 Points)
Replied 06 August 2013

u can consider 80 G deduction for TDS but u have to file return IF U R INCOME is above 200000

Mihir (Wealth Manager) (5293 Points)
Replied 06 August 2013

Donation is noble, but family responsibility is even bigger. So save tax by way of investments which will come back to you and/or to your family on a later date.