My employer has estimated my Salary and bonus income for Financial Year 2019-20 as RS.4 lakhs. After deducting Provident fund of Rs.38400/, the income estimated is Rs.361600/ the tax computed is RS.5800/.The average tax per month is RS.483/. This has been deducted from my salary every month with out giving effect the rebate u/s 87 A.If the rebate is given,then the tax payable will be Nil.Is my employer's action of TDS Correct.
7 Replies
Kumar Sushank
(General Manager - Finance)
(1040 Points)
Replied 02 November 2019
No, It is not correct, Your employer should consider at least Standard Deduction of Rs. 40,000/-
Then your total TDS should be (3580 + 4% Cess) before Rebate u/s 87A
Rs. 310/- per month (approximately)
Pankaj jakhar
(trainee)
(151 Points)
Replied 02 November 2019
No it is not required to deduct tds.
Your tax after rebate is nil.
Your tax after rebate is nil.
prasad Nilugal
( GST Practitioner & Accounts )
(14801 Points)
Replied 02 November 2019
I think standered deduction for F.Y 2019-20 is 50000/- ,it has been increased in the Finance act 2019 , please confirm
MEENA VIVEK
(253 Points)
Replied 02 November 2019
Yes Standard deduction for financial year 2019-20 is RS.50000/ correct.
Sreevidhya V
(405 Points)
Replied 02 November 2019
The rebate is available to a resident individual if his total income does not exceed Rs. 5,00,000. The amount of rebate shall be 100% of income-tax or Rs. 12,500, whichever is less. so in your case if income doesn't exceed 5 lacs then no need to deduct tds
Kapadia Pravin
(17259 Points)
Replied 03 November 2019
Your Employer's action to deduct TDS is not correct.
He should take into consideration rebate available under 87A . TDS will then become NIL.
He should take into consideration rebate available under 87A . TDS will then become NIL.
sabyasachi mukherjee
(27574 Points)
Replied 03 November 2019
At the beginning of financial year the finance department issued a circular for employee to give details of tax investments.
After the details are given the concerned officer gives an estimation it may more or less in order to have a equitable deduction from the employees salary and to hv a parity.
In this case ,Meena obviously you will get a relief.
Wait till the end of the financial year.
After the details are given the concerned officer gives an estimation it may more or less in order to have a equitable deduction from the employees salary and to hv a parity.
In this case ,Meena obviously you will get a relief.
Wait till the end of the financial year.
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