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TDS on Salary

Shweta (AM-HR & Marketing) (30 Points)

15 December 2008

Hi,

I want to know if the employee (male) has the salary of 3 lacs per annum, then what will be the TDS on that. It will be deucted on 3 lac.

Please clarify

Thanks

Shweta

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12 Replies

(Guest)

If the salary is Rs 3.00 lacs and if employee claims deduction upto Rs 1.00 lakh under chapter VIA then TDS will be deducted on Rs 50000(300000-150000-100000)

the amount of total tds will be Rs 5,150[(50000*10%)+[5000*3%)]

else the TDS will be deducted on Rs 1.50 lacs (3.00-1.50)

Amount of total TDS will be Rs 15,450[(150000*10%)+(15000*3%)]

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sitaram (Executive Accounts) (136 Points)
Replied 15 December 2008

Originally posted by :Shweta
"	Hi, I want to know if the employee (male) has the salary of 3 lacs per annum, then what will be the TDS on that. It will be deucted on 3 lac. Please clarify Thanks Shweta	"

For Fin Year 2008/09

For male

upto 1.50 lac -Rs. Nil

1.5 lac to 3 lac -10%

3 lac to 5 lac - 20%

5 lac & above - 305

Regards

Sitaram Kubal

Surya Jain (Student) (944 Points)
Replied 15 December 2008

TDS on salary will be @ 10.30%.

Surya

Rishubh Mathur (Analyst -Taxation) (442 Points)
Replied 15 December 2008

Ms Shweta

You need to clarify first salary structure (Basic Pay, HRA, Conveyance, DA etc.) of and savings declared by the employee for the current period. Then only a reliable estimate can be made.

You may forward me

1.) salary breakup;

2.) details of savings made/ declared to be made by the employee and

3.) details of any other income reported by the employee (like interest from saving a/c, FDR etc. or rentals from any house property etc.)

at - carishubh @ gmail.com

Rishubh Mathur (Analyst -Taxation) (442 Points)
Replied 15 December 2008

The views of Suresh and sitaram are incorrect as they have not allowed for any possible deduction by way of conveyance, savings (LIC premium, house rent etc.).

Also, one cannot presume deductions to be Rs.1 lakh. It is the responsibility of the employer to deduct correct and sufficient (ie, not less than minimum reqd). Hence Ketan's view cann't be followed as follow. Also he forgot to take impact of deductions u/s 10 (regarding tax-free components of salary)

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ROHIT SRIVASTAVA (ARTICLESHIP) (31 Points)
Replied 15 December 2008

Originally posted by :Rishubh Mathur
"	The views of Suresh and sitaram are incorrect as they have not allowed for any possible deduction by way of conveyance, savings (LIC premium, house rent etc.). Also, one cannot presume deductions to be Rs.1 lakh. It is the responsibility of the employer to deduct correct and sufficient (ie, not less than minimum reqd). Hence Ketan's view cann't be followed as follow. Also he forgot to take impact of deductions u/s 10 (regarding tax-free components of salary)	"

Ms. Shweta,

You have to correspond with the employee.You have to get the details of his savings as regards in which he can claim deduction & exemption. After getting his details you have to deduct T.D.S. accordingly.

Remember the provisions as regards Conveyance Allowance, Transport Allowance & H.R.A.

Dont make the mistake of not keeping the proof of the details given by the employee. The A.O. can ask for the proof at the time of scrutiny.

The proof can be the LIC receipt, Rent receipt etc.

Sanjay (Student) (112 Points)
Replied 15 December 2008

Hi Shweta, one thing I just want to add to the statement ot Mr. Ketan, the whole amount of TDS should not be deducted at once. It has to be deducted proportionately i.e. should be divided by the no. of remaining months in the year.

In above as tds Rs. 15450/- calculated by Mr. Ketan should be divided by 4 months as far as deduction is considered for the month of Dec 2008.

i.e. Rs. 15,450/4 = Rs. 3863.00

CA. Rajeev Aggarwal (Chartered Accountant) (3424 Points)
Replied 15 December 2008

Yes, Mr.Ketan & our guest Mr. Sanjay is very much right

Shweta (AM-HR & Marketing) (30 Points)
Replied 17 December 2008

Hi,

Thanks for the information

Will you please clarify me one thing, if employee join in the last month and last week of the year, so in that case what will be the process of deduction. I mean to say, it deduction starts from next finacial year or with the joining.

Thanks

Shweta

sitaram (Executive Accounts) (136 Points)
Replied 17 December 2008

Its deduction statrs from next fin year, i.e. April onwards.

Regards

Kubal

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CA. ANKUR JAIN (CA.....) (2800 Points)
Replied 17 December 2008

hellow,

yeah Mr. sitaram is very much right

deduction will b started from next financial year ...............

Saurabh Gupta (Service) (53 Points)
Replied 10 January 2009

If any employees join the company in sep or oct and employee doesn't want to show his income for tax calculation that what will be the responsibility of present employer. Employer should get a declaration from employee for nonshowing the income of previous employer or it's not necessary.

Originally posted by :sitaram

Hi
Its deduction statrs from next fin year, i.e. April onwards.
Regards
Kubal