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Tds on salary

Joseph Samuel (Accountant) (75 Points)

08 July 2019

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?

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4 Replies

Akhil (Student CA ) (988 Points)
Replied 08 July 2019

filing is mandatory if crosses 2.5bel.....tds deduction also mandatory...

morrover income tax slab not incz to 5lacs....rebate is incz to 12500(for fy 2019-20)

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Manmath Raja (GST practice ) (97 Points)
Replied 08 July 2019

refer section 87A of income tax Act.... RS 12,500/- TDS deduction is mandatory and return filing is also Mandatory

Joseph Samuel (Accountant) (75 Points)
Replied 08 July 2019

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.