Tds deduction on salary?

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CAn any body plz tell me whether leaves are considered or not while deducting TDS,,whether TDS is deducted on gross amount OR net amount paid to employee(Salary p.m less amount deducted for leaves taken)....

Replies (10)

TDS is to be ddeducted on the amount which is taxable in the hands of employee...

 

tds is deductd on the amount which comes into the employe s  hands     eg if the salary of x is 30000 and he gets only 25000 due to leave then tds is only on 25000

Every person who is responsible for paying any
income chargeable under the head "Salaries" shall deduct
income-tax on the estimated income of the assessee under the
head "Salaries" for the financial year. The incometax
is required to be calculated on the basis of the rates given
 and shall be deducted on average at the time of each
payment. No tax will, however, be required to be deducted at
source in any case unless the estimated salary income
including the value of perquisites, for the financial year
exceeds Rs.1,60,000/- or Rs.1,90,000/- or Rs.2,40,000/-, as the
case may be, depending upon the age and gender of the
employee

 

Attached file may be help ful to you

 

 

Every person responsible for payment of salary income shall estimate the tax liability  of the receipient and tax so estimated shall be deducted in 12 monthly installment . However ,while estiating the tax liability of the assessee  notified deduction under section 80C to 80U shall be considered 

Hi,

 

Any assessee is liable for tax only on the income received or earned. Since the deductions on account of leave etc., are not payable even in future, the liability will be on the net amount...

Thanks to my friends.. However the sec 40(i)(a) does not mandate the payer to deduct tax on payment of salary, but to stand on safe side he deducts the tds. Even if one has not deducted tax and paid salary then salary can not be disallowed for income cal. such section clearly excludes the salary exp. for not disallowing even if tax not deducted.
Thanks to my friends.. However the sec 40(i)(a) does not mandate the payer to deduct tax on payment of salary, but to stand on safe side he deducts the tds. Even if one has not deducted tax and paid salary then salary can not be disallowed for income cal. such section clearly excludes the salary exp. for not disallowing even if tax not deducted.

Dear Friend ( better if you come up with your name )

As far as the question of leave is concerned, if you had accumalated leave balance at the end of the year then the TDS will be deducted. 

This is the basis reason of higher TDS liability in the last month of the year.

i think tds is deducted on net amount after adjsuting leave,but we deduct tds on monthly basis calculation of tds is done in starting of F.Y. you adjust last month tds deducting on salary.

Thank You Very much for all ur replies...thanks a lot....


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