Jyothis (Article) (1127 Points)
21 August 2015Our company is paying employees a salary ranging from Rs.25000 to Rs.1,20,000 p.m & we are deducting tds only on salary per month exceeding Rs.100,000 per month.is there any specific disallowance for same.
Kiran. S
(CTO)
(745 Points)
Replied 21 August 2015
Income upto 6 lakhs per year is tax free and you need not deduct tax from salary if and only if
your employee shows or promises a investment of 1.5 lakhs under 80C and 2 lakhs on Housing loan interest so 2.5lk +1.5 lk [80C] + 2lk [ housing interest under 24b].= 6lk.
Otherwise you should deduct tax from salary.
Jyothis
(Article)
(1127 Points)
Replied 25 August 2015
What if salary exceeds Rs.600,000 & shows/promises deduction under various sections of income tax Act.
Kiran. S
(CTO)
(745 Points)
Replied 25 August 2015
If Taxable incomes below 5 Lk then further tax rebate of rs 2000 is available under 87A .TDS need to be deducted beyond that.
Jyothis
(Article)
(1127 Points)
Replied 28 August 2015
Sir,my question was if salary exceeds Rs.600,000 per annum per employee,Is tds deduction from salary is a must for allowability of deduction of expense.incase employee has various deductions under chapter vi-a.
Say salary per annum of an employee-Rs.12,00,000 & deductions under chapter vi-a. is Rs.11,00,000.Is deduction of tds by employer is necessary.
CAclubindia
