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TDS ON SALARY

P MURUGAN (ACCOUNTANT) (186 Points)

06 September 2019

A assesse (employee) who got a salary of Rs. 408000/year. in this case, the employer is liable to deduct TDs from employee under section 192? because of income below Rs.5,00,000/year , no income tax will be pay. please give the valuable reply.

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3 Replies

Divya Priya (student) (333 Points)
Replied 06 September 2019

Yes sir. Even thought income is below 5L , it exceeds basic limit. So TDS should be deducted by the company and later on while ITR filing you can get back refund if any.

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Sahil (student) (28 Points)
Replied 06 September 2019

If total income of assessee after reducing deductions (only if assessee has given the documentory proof of deductions under chapter VI-A) has not been more than amount which is chargeable to tax then there is no liablity to deduct TDS.
Also consider rebate of 2500 u/s 87A if total income (i.e. Gross total income less deductions) does not exceeds 350000.

Kapadia Pravin (17259 Points)
Replied 06 September 2019

I assume the query is for current FY 2019-2020

TDS will be there on 408000/- as reduced by based on your declaration to the employer for deduction under 80C 80D .

For example if it is 408000/- then minus 150000/- (declaration amount) then TDS will be on 258000/-.

@ Sahil
Rebate under section 87A has now become maximum 12500/- if income below 5 lakhs