If I have a salary of 479150 and have invested 129150 in some investment
balance is 350000
will I be eligible for section 87A deduction of 2500 ?
and do I have to deduct TDS on salary ?
7 Replies
Kapadia Pravin
(17259 Points)
Replied 15 October 2019
For which AY you are asking ?
Bcoz from AY 2020-2021 the rebate under section 87A has been increased to 12500/- (if total taxable income is upto 5 lakhs
Even if you do not invest any amount under 80C, the TDS from salary will be Nil
The question of TDS does not arise as taxable income is less than 5 lakhs.
Bcoz from AY 2020-2021 the rebate under section 87A has been increased to 12500/- (if total taxable income is upto 5 lakhs
Even if you do not invest any amount under 80C, the TDS from salary will be Nil
The question of TDS does not arise as taxable income is less than 5 lakhs.
debora M
(BUSINESS DEVELOPMENT MANAGER)
(1697 Points)
Replied 15 October 2019
Yes you are not eligible to deduct TDS on salary because it is less than 5lakhs
Suresh Thiyagarajan
(Student)
(3986 Points)
Replied 15 October 2019
1. Yes, you will be eligible for rebate u/s 87A of Rs. 2500 if the taxable income is less than Rs. 350,000.
2. Rebate will be applicable income up to Rs. 350,000. In your case tax liability for the FY 2018-19 in relation to salary would be Rs. 2600.
3. TDS shall be deducted u/s 192 will be Rs. 2600. However, since the year itself got over and salary would have already been paid. I don't find any reason for the deduction of TDS now. If salary previous year's salary is paid during this year it will be treated as arrears salary.
Please correct me if the above solution has an alternative view.
Kapadia Pravin
(17259 Points)
Replied 15 October 2019
.. It is the responsibility of the employer to deduct TDS from salary and if he doesn't then he has to pay interest on the same and the expense is disallowed.
Better to pay SA Tax alongwith interest and file ITR immediately.
-------
In case salary income is before Standard Deduction , then salary income will get reduced by 40000/-. in that case TDS tax liability will be only 520/-.
Better to pay SA Tax alongwith interest and file ITR immediately.
-------
In case salary income is before Standard Deduction , then salary income will get reduced by 40000/-. in that case TDS tax liability will be only 520/-.
Bharat Bohra
(306 Points)
Replied 20 October 2019
1. yes you are eligible for 87A deduction..
2. you need to deduct TDS
Bal income after deduction - 350000
less: std deduction- 40000
taxable income 310000
tax liability 3000
less 87A 2500
payable 500
+EC 20
TOTAL TDS TO BE DEDUCTED 520.00
2. you need to deduct TDS
Bal income after deduction - 350000
less: std deduction- 40000
taxable income 310000
tax liability 3000
less 87A 2500
payable 500
+EC 20
TOTAL TDS TO BE DEDUCTED 520.00
Recent Topics
- Reporting in gstr9 of ITC of Previous year reverse
- Tax on Reimbursement of House Rent
- MAHARASHTRA CHARITY COMMISSIONER WEBSITE
- Explanation 3 to section 11(1) read with section 4
- Ammendment in Partnership On Death of Partner and
- TDS Provisions applicability Tax Audit Individual
- NAME CHANGE OF HUF
- Advisory for Reporting TDS Deducted by scrap Deale
- Section 194 J Technical Service/Professional Servi
- Solving of Export Related Problems
Related Threads
CAclubindia
