Ad Free CAclubindia and Daily Updates on your Mobile. Subscribe Now!

Tds on salary :urgent

vinayak c. chavan (CPT passed) (1011 Points)

26 April 2014

We are private limited company. one of our employee salary for year is Rs.320000/- and he his having lic policy and bank loan against him. So should we consider lic & loan deduction while calculating TDS on his salary or should we deduct tds on salary as attached file? Please suggest. If we have to avail loan deduction what should be the limit in case of individual male

Reply
Follow
Share

5 Replies

Anoop N S (Finance Manager ) (69 Points)
Replied 26 April 2014

yes you should cosider lic but bank loan interest paid on housing loan should be considered .

Upgrade to CAclubindia Pro. Subscribe Now!

Sahil Arora (Accountant) (40 Points)
Replied 26 April 2014

Yes. You should consider both if employee is providing you the documentary proofs for the same. The limit will be Rs. 1,50,000/- (Maximum) against Housing Loan Intt U/s 24.

PS :- Interest will be deducted u/s 24(Maximum 1,50,000/-) but the principal amount will be deducted u/s 80C (Maximum 1,00,000/-)

Hope it helps.

CA SUKSHAM ARORA (CA) (569 Points)
Replied 26 April 2014

yes, you should consider them & should also provide rebate of rs. 2000 in case a.y. 2014-15 before deduction tds as gti is less than 500000

vinayak c. chavan (CPT passed) (1011 Points)
Replied 26 April 2014

That means I should consider Rs.60000 as principal and Rs.10000 as lic and rs.10000 as interest on loan while taking deductions from salary. can i claim pricipal amt deuction apart from 80 C decution amount of rs.1 lac or it is included in 80 C deduction.

Originally posted by : Sahil Arora

Yes. You should consider both if employee is providing you the documentary proofs for the same. The limit will be Rs. 1,50,000/- (Maximum) against Housing Loan Intt U/s 24.

PS :- Interest will be deducted u/s 24(Maximum 1,50,000/-) but the principal amount will be deducted u/s 80C (Maximum 1,00,000/-)

Hope it helps.

Sahil Arora (Accountant) (40 Points)
Replied 26 April 2014

Originally posted by : vinayak c. chavan
	That means I should consider Rs.60000 as principal and Rs.10000 as lic and rs.10000 as interest on loan while taking deductions from salary. can i claim pricipal amt deuction apart from 80 C decution amount of rs.1 lac or it is included in 80 C deduction.

It is included in 80C as Repayment of Housing Loan.