Dear sir/madam,
As per new budget, the individual tax slab is increased to Rs. 5,00,000/-. So if a person is receiving Rs. 35,000/- per month, does the employer need to calculate and deduct TDS on salary? Because still he/she is coming below the taxable category right (Rs. 4,20,000/- per annum). So does the employer need calculate and deduct TDS on salary?
Ok, so according to Sec. 87A, the assessee of earning up to Rs. 5,00,000/- needs to file IT though, he/she can rebate the entire tax amount of Rs. 12,500/-. Since the filing of IT is still mandatory for an individual earning above Rs. 2.5 lakhs, the TDS calculation and deduction also be the same as before. Which means if an employee earning above Rs. 2.5 lakhs, the employer needs to deduct TDS. Am I right? Correct me if I am wrong.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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