TDS on salaries doubt

787 views 6 replies

Hi,..

My friend told me that his salary is 17k per month. Now that is much more than the basic exemption limit. So he should be charged TDS on salary, and issued Form 16. But the company is not doing so. When I saw his statement his basic totalled to around 10k....is that why?

My question is : Is the TDS on Salary calculated for tax purposes taken as BASIC +DA?

Replies (6)

TDS should be deducted b your friend's company . The TDS should be deducted on BASIC+D.A . The D.A amount should exclude the D.A for retirement purpose .

friend pls note the following salary 17000x 12 = 194000 less : travelling all 9600 med all 15000 hra ????? ded us.80C etc. such ded result in lesser net taxable salary...hence i think that ur co. might have taken all reasonable steps....n would b correct...

agreed with Mr. vikas

but point is if the co. is not deducting TDS, it will be liable to pay penalties.........

company will not be liable to pay any penalties if the assessee himself suggest the company that he doesnt have any other income due to which he doesnt fall in the tax net. the must take this in writing from assessee and inform the assesessing officer for the same as to why he is not deducting tds. in this case it safe the the time of assessing officer to assessed tax collected through tds and refund it back to the assessee

That is the duty of copmany. If company not pay it then it will be liable to pay interest and penalty.

And its auditor will also be denote it at the time of its audit

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