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Tds on salary

shibsankar (Asst. Manager - Accountants) (119 Points)

23 December 2015

Hi Everyone, One my colleague is resigning the job on 31th dec. He has submitted all the investment declarations for the F.Y.2015-16 INCLUDING interest on homeloan, My quary is do i need to consider the whole amount to calculate tds on salary or proportionately i need to consider the amout. For example his interest on homeloan for the F. Y., 2015-16 is 240000/-. Shall i consider the full amount or 180000/- for deduction. Thanks

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5 Replies

Ankit Taprania (CA FINAL ) (542 Points)
Replied 24 December 2015

Well , buddy you have to consider full amount of interest i.e upto 31 march 2016.

section 192 require the company to assume the income of the whole year and according calulate taxable income ( which include income / loss from all head of income as declared by the employee) and then finally calculate tax on taxable income and deduct TDS.

ASSUME income in this manner:

upto 31 december : salary paid

1 jan to 31 march : NIL

WHEN YOU ARE TAKING FULL YEAR INCOME YOU HAVE TO TAKE FULL YEAR DEDUCTION .

BUT REMEMBER when employee have declared interest on house loan on self occupied house the max deduction u/s 24 can be 2,00,000 only.

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shibsankar (Asst. Manager - Accountants) (119 Points)
Replied 24 December 2015

Thank you so much Ankit... And what about the deduction u/s 80C, do i need to consider the full amount i.e. Apr to mar? or Apr to dec?

Vikas Gupta (Tax Executive) (530 Points)
Replied 24 December 2015

Any deduction under chapter VI-A (From sections 80C to 80U) is deductible on paid basis during the whole financial year. Thus, You should consider full amt. to be invested/incurred u/s 80C from Apr to Mar. However, employer may ask to submit proofs of investments made by you during 2015-16.