CA C. Maheshwar Reddy

CA C. Maheshwar ReddyTDS on Salaries – Section 192- Procedure to deduct TDS – Compliance with Income Tax Act and rules there under

Back Ground:

Under Section 192, the employer is required to deduct Tax at Source while making the payment of salary during financial year to the employees, at the rate of applicable to the individuals. For deduction of Tax at source (TDS), the tax has to be calculated according to slab wise rate. The applicable slab wise rate for deduction of tax at source will be notified through the Finance Act.

Applicable rate of Tax on income chargeable under the head “Salaries” for the financial year 2015-16 (i.e., Assessment Year 2016-17) is as follows:

Sl.No. Total Income Rate of Tax
1. Where the total income does not exceed Rs. 2,50,000/- NIL
2. Where the total income exceeds Rs. 2,50,000 but does not exceed Rs. 5,00,000/- 10 % of the amount by which the total income exceeds Rs. 2,50,000/-
3. Where the total income exceeds Rs. 5,00,000/- but does not exceeds Rs. 10,00,000/-. Rs. 25,000/- + 20% of the amount by which the total income exceeds Rs. 5,00,000/-.
4. Where the total income exceeds Rs. 10,00,000/-. Rs. 1,25,000/- + 30% of the amount by which the total income exceeds Rs. 10,00,000/-

TDS should be deducted at applicable rates as above along with surcharge and Education Cess.

Surcharge at the rate of 12% applicable where the taxable income exceeds Rs.1 Crores. Education Cess at the rate of 3% (without any limit in taxable income) on income tax plus surcharge will be levied.

Every person who is paying salary has to comply with the provisions of the Income tax Act and the rules made there under. The following are the steps / Points that may be followed in complying with the same:

1. Declaration from Employees: Take a declaration from the employees with regard to their savings, investments or sums qualified for deduction or exemption under salaries.

Points to be considered by the employer at the time of taking declarations from employees for TDS purpose:

a. Salary from more than one employer:

  • Section 192(2) deals with situations where an individual is working under more than one employer or has changed from one employer to another.
  • In Such circumstances it provides for deduction of tax at source by such employer (as the taxpayer may choose) from the aggregate salary of the employee who is or has been in receipt of salary from more than one employer.
  • The employee is now required to furnish to the present/chosen employer details of the income under the head “Salaries” due or received from the former/other employer and also tax deducted at source therefrom, in writing and duly verified by him and by the former/other employer
  • The present/ chosen employer will be required to deduct tax at source on the aggregate amount of salary (including salary received from the former or other employer).

b. Income under any other Heads:

  • Section 192(2B) enables a taxpayer to furnish particulars of income under any head other than “Salaries”. If the employee furnishes the details of any other income, then the same need to be considered at the time of deduction of TDS under salaries.
  • The employer shall not consider any other loss other than the loss under the head “income from house property” received by the assessee for the same financial year and of any tax deducted at source thereon.
  • Employee has to declare if he has gained any other income should be intimated to employee through declaration form.

2. Calculation of Taxable Salary:

Calculate the taxable salary by giving the effect of the following:

A. Allowable Exemptions under Salaries:

i. House Rent allowance: If the employee is receiving the House Rent allowance (HRA) and paying the Rent, then least of the following amount is to be allowed as exemption under HRA.

a) HRA Received XXX
b) 40% of Basis plus DA if it is part of retirement proceedings. XXX
c) Rent Paid

Less: 10% of Basic plus DA if it is part of retirement proceedings.

XXX

XXX

___

 

XXX

The lower of the above three will be allowable as exemption from HRA allowance.

Note: The Employer has to take the lease deed / rental agreement or rent paid receipt from the employee for giving the above exemption.

ii. Conveyance / Transport Allowance: If the employee is receiving the Conveyance / transport allowance for commuting between the place of residence and duty (coming to office and going back to home), a sum of Rs.1,600 per month or actual allowance received whichever is lower is allowable as exemption.

iii. Medical Allowance: If the employee is receiving the medical allowance is exempted Rs.1,250 per month or actual expenditure whichever is less. Fixed Medial allowance is fully chargeable to tax.

iv. Uniform Allowance: When the employee is receiving the uniform allowance to meet the terms and conditions of the working culture, then the actual allowance amount or expenditure incurred on buying of the Uniform whichever is lower is exempted.

The above allowances are illustrative only. The allowances would be based on the HR policy on providing the allowances to the employees as part of salary and the exemption would be based on the provisions of the Income Tax Act and the rules made there under.

B. Deduction under Section 24(a) for Self occupied House Property – Interest on Housing Loan: Section 24(b) of the Act allows deduction from income from house property on interest on borrowed capital as under:-

  • The deduction is allowed only in case of house property which is owned and in the occupation of the employee for his own residence.
  • However, if it is not actually occupied by the employee in view of his place of the employment being at other place, his residence in that other place should not be in a building belonging to him
  • The quantum of deduction allowed as per table below:
Sl.No. Purpose of Borrowing Capital Date of Borrowing Capital Maximum Deduction Allowable
1 Repair or renewal or reconstruction of the house Any time Rs. 30,000/-
2 Acquisition or construction of the house Before 01.04.1999 Rs. 30,000/-
3 Acquisition or construction of the house On or after 01.04.1999 Rs. 2,00,000/-
  • The house so acquired or constructed should be completed within3 years from the end of the Fin.year in which the capital was borrowed. Hence it is necessary to acquire completion certificate of the house property against which deduction is claimed either from the builder or through self-declaration from the employee.
  • Further any prior period interest for the fin.years, up to the fin.year in which the property was acquired and constructed shall be deducted in equal installments for the fin.year in which it was completed and subsequent four fin.years.
  • The employee has to furnish to the Employer a certificate from the person to whom any interest is payable on the borrowed capital specifying the amount of interest payable. In case a new loan is taken to repay the earlier loan, then the certificate should also show the comprehensive picture of Principal and Interest of the loan so repaid.

3. Calculation of Tax deducted at Source: After calculating the Taxable Salary as mentioned in previous steps, give the allowable deduction as given below:

Allowable Deductions under Sec. 80C to 80 U:

i. SEC 80C:

Section 80C, entitles an employee to deductions for the whole of amounts paid or deposited in the current financial year in the following schemes, subject to a limit of Rs. 1,50,000/-.

Section 80C, entitles an employee to deductions for the whole of amounts paid or deposited in the current financial year in the following schemes, subject to a limit of Rs. 1,50,000/-.

a. Investments in capital issues of equity shares and/or Debentures and/or Units of Mutual Funds/Public limited Companies, Engaged in developing, maintaining or operating an infrastructure/power generation or distribution/Telecom facility, approved by Central Board of direct taxes (CBDT)

b. Interest accrued on National Savings Certificates, (VIII or IX Issue) is eligible for tax relief under Section 8OC of the Income Tax Act, 1961. The rates of interest are given behind the certificate.

c. Life insurance Premium paid

d. Contribution to statutory PF and recognized PF

e. Contribution to 15 years P.P.F.

f. Contribution towards approved superannuation fund

g. Any sum paid as subscription to Home Loan Account Scheme of the National Housing Bank

h. Any sum paid as subscription to National Saving Certificate issues

i. Contribution to ULIP of UTI

j. Contribution to Equity – Linked Saving Scheme of a Mutual Fund/UTI

k. A) Any installment as part payment of the amount due under any self financing or other scheme of any development authorities, Housing Board engaged in the construction and sale of the house property

B) Any installment as part payment of the amount due to any company or co-operative society of which the individual is a scheme holder or member towards the cost of the house Properties.

C) Repayment of the amount borrowed by the individual from 1. Central or State Government, 2. Any Bank including Co-operative Bank, 3. LIC, 4. National Housing Bank, 5. Any Public Company with the main object of providing long term finance for Construction/purchase of houses.

l. Any amount deposited in scheduled bank fixed deposit scheme for a period exceeding 5 years.

m. Amount deposited in five year time deposit scheme in post office.

n. Any contribution by an individual to any notified pension fund setup by notified mutual fund or UTI

o. Tuition Fees: subject to the following conditions

1) The taxpayer is an individual.

2) He has paid tuition fees. It does not include payments towards any development fees or donation or payment of similar nature

3) Such fee is paid at the time of admission or thereafter.

4) It is paid to a university, college, school or other educational institutions situated in India

5) It is paid for full time education.

6) It is paid for any two children of the taxpayer. Children may (or may not) be dependent upon the taxpayer; moreover, children may (or may not) be minor.

If the aforesaid conditions are satisfied, then the tuition fees paid per child subject to a maximum of 2 children. (Only those payments, which were made between 1st April to, 31st March has to be considered and proper receipt for the same has to be produced to the concerned disbursing officer)

ii. 80CCC: Contribution to Pension Fund:

The deduction under Sec.80CCC towards amount paid or deposited to keep in force a contract for any annuity plan of LIC of India or any other insurer for receiving pension from the fund. The amount deposited or Rs.1,00,000 whichever is lowers is deductible. [subject to the maximum deduction under 80CCC and 80CCCD(1) Rs.1,50,000.].

iii. 80CCD: Contribution to National Pension System:

The deduction under Sec.80CCD available to only An individual employed by the Central Government on or after 1.1.2004 or any other employer as well as self employed Individual who has paid or deposited any amount in his account under a notified pension scheme .

The deduction available, in case of a salaried individual, deduction of own contribution under section 80CCD(1) is restricted to 10% of his salary. In any other case, deduction under section 80CCD(1) is restricted to 10% of gross total income. Further, the deduction under section 80CCD(1) cannot exceed Rs. 1 lakh.

The entire employer’s contribution would be included in the salary of the employee. The deduction of employer’s contribution under section 80CCD(2) would be restricted to 10% of salary. However, the limit of Rs.1 lakh under section 80CCD(1) and Rs.1.50 lakh under section 80CCE does not apply to deduction under section 80CCD(2 ).

iv. SEC 80CCG:

  • Newly inserted Section 80CCG provides in respect of investment made under notified equity saving scheme. The deduction under this section is available if following conditions are satisfied.
    • The assessee is a resident individual (may be ordinarily resident or not ordinarily resident)
    • His gross total income does not exceed Rs. 12 lakhs
    • He has acquired listed shares in accordance with a notified scheme
    • The assessee is a new retail investor as specified in the above notified scheme
    • The investment is locked-in for a period of 3 years from the date of acquisition in accordance with the above scheme
    • The assessee satisfies any other condition as may be prescribed
  • Amount of deduction:

The amount of deduction is at 50% of amount invested in equity shares. However, the amount of deduction under this provision cannot exceed Rs. 25,000. The deduction is available for three consecutive assessment years beginning with the assessment year in which equity shares or units were first acquired.

v. SEC 80D:

Section 80D provides for deduction available for health insurance premium paid, etc. which is calculated as under:

Sl. No. Persons for whom payments made Nature of payment Mode of payment Allowable Deduction
1. Employee or

his family

a. the whole of the amount paid to effect or to keep in force an insurance on the health of the employee or his family or

b. Any contribution made to the CGHS or

c. Any payment on account of preventive health check-up of the employee or family, [restricted to Rs. 5000/-; cash payment allowed here]

any mode

other than

cash

Aggregate allowable is Rs.

25,000/{if medi-claim insurance taken in the life of a senior citizen

Rs. 30,000/-}

2. Parent or Parents of employee a. the whole of the amount paid to effect or keep in force an insurance on the health of the parent or parents of the employee or

b. any payment made on account of preventive health check-up of the parent or parents of the employee [restricted to Rs. 5000/-; cash payment allowed here]

any mode other than cash Aggregate allowable is Rs. 25,000/- {For Senior Citizens it is Rs.30,000/-}

Here the employee must ensure that the medical insurance referred to above shall be in accordance with a scheme made in this behalf by-

  • the General Insurance Corporation of India formed under section 9 of the General Insurance Business (Nationalization) Act, 1972 (57 of 1972) and approved by the Central Government in this behalf; or
  • any other insurer and approved by the Insurance Regulatory and Development Authority established under sub -section (1) of section 3 of the Insurance Regulatory and Development Authority Act, 1999(41 of 1999).

vi. Sec.80DD: Maintenance including medical treatment of a dependent disabled:

Any amount incurred for the medical treatment, training and rehabilitation of a dependent disabled

and / or

Any amount paid or deposited under the scheme framed in this behalf by the LIC or any other insurer or Administrator or Specified Company.

Then flat deduction of Rs.75,000 is allowed as deduction. In case of severe disability (i.e. person with 80% or more disability) the flat deduction shall be Rs. 1,25,000 allowed as deduction.

vii. Sec.80DDB: Deduction for medical treatment of specified diseases or ailments:

Amount paid for specified diseases or ailment as prescribed under Rule DD of the Income Tax Rules. The deduction available to Individual for himself or his dependent spouse, children, parents, brothers or sisters. In the case of HUF, any member of his family

The deduction available is actual sum paid or Rs.40,000 (Rs.60,000, if the payment is for medical treatment of a senior citizen. Rs.80,000, if the payment is for medical treatment of a super senior citizen – resident who is at least 80 years of age at any time during the previous year), whichever is less, minus the amount reimbursed from the insurance company or the employer. Any amount incurred for the medical treatment, training and rehabilitation of a dependent disabled

viii. Sec.80E: Deduction in respect of Interest on Loan taken for higher studies:

Interest on loan should be taken from any financial institution or approved charitable institution. Such loan is taken for pursuing his higher education or higher education of his or her relative i.e., spouse or children of the individual.

The deduction is available for interest payment in the initial assessment year (year of commencement of interest payment) and seven assessment years immediately succeeding the initial assessment year or until the interest is paid in full by the assessee, whichever is earlier.

4. Arriving of Total Income: After giving the deduction under Section 80C to 80U from the taxable salary, then arrived amount would be treated as Total Income on which the TDS need to be deducted.

5. Calculation of Tax: After giving the deduction under Section 80C to 80U, as mentioned above, calculate the tax according to slab wise.

6. Deduction of TDS from Salaries: The TDS as calculated according to the previous steps, deduct the TDS by calculating average for 12 months, then deduct TDS on monthly basis. If short deduct in the previous months, the balance need to be deducted from available months.

7. Obtain Confirmations / Proofs for investments or Savings: The employer has to obtain the proofs for the savings or investments made by the employee. If the employee has not submitted or not invested as given in his declaration, then calculate the Tax assuming the employee has not invested or done any savings and accordingly deduct the balance TDS from his salary before the payment of Salary.

8. Depositing of TDS deducted: The employer has deposit the TDS which was deducted from the Salaries. The due date for the same are, for the month of April to Feb of the Financial year the due date is 7th of the subsequent month in which the TDS was deducted.

9. Filing of E-TDS Returns: The Employer has to file the E-TDS return in Form-24Q for each quarter. The following are the due dates for filing of the online E-TDS returns.

PERIOD DUE DATE OF FILING
April to June 15TH JULY
July to September 15th OCTOBER
October to December 15th JANUARY
January to March 15th MAY

10. Issue of Form-16 to the Employees: The Employer has to issue the Form-16 along with Form – 12BA to the respective employees on or before 31st May (after ending of the financial year).

(Republished with Amendments)

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Tags : Section 192 (30) Section 80C (134) Section 80D (48) TDS (907) tds on salary (49) TDS Provisions (16) TDS Rates (19)

63 responses to “TDS on Salaries – Procedure to deduct TDS – Compliances”

  1. R RAVI says:

    Namaskars. I have taken VR from a nationalised Bank and got all my retiral benefits in 2013 itself. Now that I am working for a Benefit Fund Ltd from April, 2017. I am 53 years old. I shall be paid monthly salary of Rs.24,000/-. They are deducting Rs.2,400/- p.m as TDS under Sec 194/C TDS under Contract (10%), if I do not furnish my ‘other income’. Is it justified? Anyway, I am filing IT returns and going to furnish all details as per Form 16 to be obtained from the Fund Company. For 12 months the salary will be around Rs.290,000/-. Kindly clarify.

  2. Akshay says:

    SIR JUST WE PAID BILLS OF CA NOT EXCEEDS 30000/- FOR PROFESSIONAL SERVICES N MANY BILLS ARE DUE BUT EACH ONE OF THEM ARE UNDER 30000/-.
    SO CAN I DEDUCT TDS ON THE SUM OF THE TOTAL BILLS OF THE FY 2016-17???

  3. Bhargav says:

    For one of employee, Total Tax amount for the FY 2015-16 is Rs 25000 ( arrived after all deduction)

    Now calculate Average tax= 25000/12=2083.33 Rs per month has to be deducted.

    but the employer has made the payment of whole TDS of Rs 25000 at the end of the year i.e. March 2016.

    So here interest on late payment is applicable ???

    Or any other remedy available to avoid interest.
    for salaried person.

  4. shailesh sadanand magi says:

    sir…mai medical assistance hoo.mera payment 12000/-par m hai to mera TDS 10% cut hota her month.aur dusaro ka 2% TDS cut hota aisa kyui?

  5. surinder sharma says:

    I am running a ngo doing some govt project and 100% collection from govt. is transferred to employees as remuneration. now govt deduct tds with the name of ngo. and accordingly employees get amount after tds. can ngo issue tds certificate to their employees and can employees get the benefit of tds ?

  6. v s panchal says:

    sir,i m appointed by gujarat govt.as a.p.p for two year contract baiz and bill of fees prepaid in gtr 44.whedhar tds applicable

  7. Prashant Mandawkar says:

    My salary is 25000 per month deduct the 1400RS and in hand salery is RS 23600 per month I’m eligible for the TDS are not pls replay me.

  8. Ashok Kumar says:

    If we getting 50000/- Salary .How much TDS will be Deduction

  9. varsuka says:

    Dear Sir,

    Our company directors salary is Rs.50000. per month from april-16 to october 2016

    1.How to calculate TDS for this period. What is the interest and penalty we have to pay.

    2.Directors salary comes under 192B

    Please guide.

    Thank you

  10. rugmini says:

    my salary is Rs.30000/- per month(no allowances and investments).What is the monthly tds and interest for late payment.

  11. rugmini says:

    my salary is Rs.30000/- per month(no allowances and investments).what is the monthly tds and how to calculate interest for late payment.

  12. mohd kamran says:

    My yearly salary is 1.44 lac is the tds applicable.

  13. Tushar Punwani says:

    A very good article. Thanks Sir. Cheers!

  14. anil Chauhan says:

    Dear Sir,

    My salary is 30190 in hand . my tDS yrly is 36228 .and i have submitted proof more than the tDS amount for Fy 2015-16 . will i get the form 16 & 12B or12A ..

    Thanks
    Anil

  15. ashok says:

    Thanks for good communication

  16. Amit Sidhwani says:

    Really Good N In Manner Info.

    Thanks..!

  17. VENKAT says:

    silmilar write up for government pensioners is needed

  18. vamsi says:

    Whether need to make TDs on paying salaries to the employees

  19. brijesh singh says:

    Dear sir ,

    Mera salary per month 35800 hai. Tou monthly TDS 35800 me se kitna deduction hoga.
    Please btayiye

  20. abha jain says:

    sir employee has given details of other income and TDS thereon. we have deducted TDS being the balance tax payable, i.e after adjusting TDS from other income from total tax liability). However we have recd a demand notice for short deduction of TDS. pls guide how to resolve.

  21. Vishal Agate says:

    Is the Employer required under Law to verify the authenticity of the proofs submitted by the Employees ? What is the Employer’s liability if he deducts wrong TDS based on false proofs submitted by the Employee ?

    Thank You

  22. palak says:

    Suppose A Employee Has A Net Salary (Take Home) Of Rs. 28800/-. Is There Any TDS Deduction Applicable On This Take Home. If Yes !! Then How Much Should Be Deducted? and TDS will deducted on monthly or yearly.

    • CA Abhilesh Jha says:

      Dear Palak, Take Home or Net Salary is after deducting your TDS. TDS on salary is deducted depending on your Income above Rs 250000

  23. palak says:

    Suppose A Employee Has A Net Salary (Take Home) Of Rs. 28800/-. Is There Any TDS Deduction Applicable On This Take Home. If Yes !! Then How Much Should Be Deducted? and TDS will deducted on monthly or yearly. – See more at: https://taxguru.in/income-tax/tds-salaries-procedure-deduct-tds-compliances.html#sthash.JAoHv8u1.dpuf

  24. Pawan Verma says:

    Dear sir /Mam

    mear salary 50000 per month hai aur year ke 50000*12=600000 hai
    aur insuance 100000 hai too katena tds disposed kar na hai pls sir vo bata ho

    Regard
    Pawan Verma

    • anil dutt says:

      Salary 50000*12 Rs. 600000/-
      Less Tpt allowence Rs. 19200/-
      Less HRA if on Rent Rs. –
      Less Interest paid on Home loan Rs. if any
      Less Investment (150000) Rs. 100000/-
      Less Mediclaime policy (25000) Rs. if any
      Net taxable salary Rs. 480800/-
      Tax payable Rs. 47545/-
      Monthly deduction Rs. 3962/-

  25. M.Ravi says:

    Dear Sir,

    Please send tds duduction excel sheet format.Kindly send it.It is helpful to us.

  26. santosh kumar says:

    पया मुझे यह बताने का कस्ट करें कि नियोक्ता द्वारा NPS में जमा करवाया गया 10% का contribution, डेढ़ लाख की लिमिट से ऊपर चला जाता है तो क्या यह टैक्स के दायरे में आएगा. मेरी LIC और 10% employee share को जोड़ने पर सेविंग लिमिट डेढ़ लाख आ रही है. अब क्या 10% NPS Employer Share Tax के दायरे में आएगा ? कृपया बताने का कस्ट करें.
    धन्यवाद सहित –

  27. Sushma says:

    Suppose A Employee Has A Net Salary (Take Home) Of Rs. 43000/-. Is There Any TDS Deduction Applicable On This Take Home. If Yes !! Then How Much Should Be Deducted?
    and TDS will deducted on monthly or yearly.

    please send me a calculation detail

    • chinna says:

      yes he is elgible for tds 10% 43000*10/100=4300 it will cut monthly payed 3 months once

      e-payment process

      go to e-tds payment

      select company deductes check box

      type your tan number

      select assessment year (means next year if financial year 14-15 you have to select 15-16 that means coming year)

      type of payment(select (200)TDS/TCS Payable by Taxpayer check box)

      nature of payment if pvt ltd company select other than govt employes

      select your bank

      click proceed button

      if your tan number is correct your company name will displayed automatically

      then you go for payment

      i think this will help you

      thank&regards
      chennakesavareddy
      flexiapps chief Accountant from fast 7 years

  28. Rajnish says:

    Hi sir
    My salary is 5lacks 59 thousands.
    I have given details like
    Lic 5257/- yearly
    Lic 1878/ monthly
    Education loan EMI 10000/ month
    Hiuse rent 12000/
    month

    Now i want to know after given all documents . How much amount would be deducted as Tds.
    Plz revert
    Thkx

  29. Mahender Sharma says:

    Sir
    This is highly helful the undestand the standred deduction for TDS calculation .

    We also here by requset please suggest an excel format as per standred deduction for tds deduct in salary.

  30. Satish says:

    Specialization in TAX AUDIT from KAIROS CORPORATE SERVICES PUBLIC LTD.

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  31. amit kumar says:

    sir,i am student of management my father is government teacher and total income is my father of 5100000:00 and 67000 thousands pay in lic premium.so i want to tax rebate in higher education case because annul fees of my tuition fees is 150000:00 so please help me how are the rebate in higher education case.

  32. ISUB KHAN says:

    Dear Sir

    u/s 80C 100000/- limit if actual LIC Premium paid 56000/-in F Y yearly than Exempt 56000/- or 100000/-

  33. chinnabanala says:

    dear sir

    i am chinna banala i have doubts in how to pay company tds just give me a procedure for the tds what require and how to cut tds how to pay the govt i am waiting for amswers i think it a very simple problem thank you

    regards
    chinnabanala

  34. Lucky says:

    Dear user

    If any TDS Problems and any payments problems i am here …help you

    Rgds
    Lucky
    7729996622

  35. Rajendra K says:

    Dear.

    Medical allowance is always taxable, only medical Reimbursement is exempt Rs. 15000 per year (Rs.1250 pm) or actual

  36. nagaraj says:

    please respond to my issue dated 01-05-2014

    why are silence? frankly tell me if you are unable to solve my issue with sbi

  37. Jitesh says:

    Hi,

    what happens when the employer has deducted excess tax (cumulative of 12 months – in this case 10 months) while paying the salary and the form 16 reads lesser tax paid to the IT department……

    can anybody help me with this please…….

    Jitesh S Jain
    +91 99402 66996

  38. rohit says:

    one employee salary 30000pm financial year 2014-15 that how to tds deducted by employer salary 300000*12= 360000 monthly tds amount deducted to employee so tds deduct slabe rate or averag rate

  39. Nagaraj T V says:

    you have not yet responded to mt comments dated 01-05-2014

    why not responded

    section 192 of income tax is blindly followed
    everyone should know ‘income’ and income in the hands of assessee.
    you forum members should rise and solve this issue
    why do you blindly accept section 192?

    why you have not responded

    is my issue beyond your domain

  40. vamsidhar krishna says:

    Though the information available is useful. The uploading dates for Govt. TDS is 31st July, 31st October, 31st January and 15th May for I, II, III and IV quarters respectively and for non govt. the dates as shown above are correct.

  41. Bhimsen Rajpurohith says:

    Sir,
    This is highly informative & helpful.

    Furhter, I shall be highly grateful to you sir if you could explain with an example of
    computation of income tax both less than 5.00lacs & more than 5.00lacs

  42. karthi says:

    i heard that TDS may not be detucted for long time employees of a company can anybody say the concern act

  43. sairam.ch says:

    Thanq sir for giving valuable information ……..

  44. nagaraj t v says:

    when do you reply on the above two issues? 01-05-2014

    Is there any definite time frame? How long I have to wait?

  45. nagaraj t v says:

    01-05-2014

    I give you a challenging problem to you, the experts.

    I rised this issue with Director of Public Grievances New Delhi.
    My grievance is still with Chief Commissioner of Income Tax Bangalore.
    Result is zero.
    Can you take this as a challenging issue and ensure justice to me.
    I want result in the form of reimbursement from SBI and ITD.

    The problem:

    Under section 192 tax deductor SBI has deducted Rs.381/- from my pension
    amount of Rs.22000/- (apprx.)

    The question is: My liability to pay income tax is after – I repeat –
    only after my cumulative pension crosses threshold limit of Rs.2,00,000/-.
    Every one knows this well. Then SBI deducts tax Rs.381/- under section 192
    of Income Tax when the income in my hands as assessee is only Rs.22000/-
    in April 2013 pension.
    Why everyone blindly implements section 192 and harass pensioners.

    I appreciate well reasoned expert splution. Not evasive answers.

    There is lot of difference between: Income and Income in the hands of the assessee.

    Why should I suffer for the ignorance of SBI, the tax deductor.

    Since several months, I am waiting for due reply from Commissioner of Income Tax Bangalore. There is no reply on this issue. Even SBI refuses to refund?

    How to protect my interest against the ignorance and domination of SBI
    in blindly following section 192 of I T Act. Respond.

    My pen No.ABTPN 5713D. My identification no. with SBI: P.F.No. 1883070.

    You experts, can you solve this issue?

    respond to :nagarajtirumanivemula@gmail.com

  46. nagaraj t v says:

    01-05-2014
    clarify the following:

    Excess tax deliberately and negligently deducted by SBI Shivapura
    My PAN No.ABTPN.5713D A-Y 2008-09 Excess I.T Rs.12061/-
    How to punish the negligence of tax deductor? SBI management refuses to reimburse. Any constitutional provision to deal with it?
    There is lack of due diligence by tax deductor. How to protect my interest?

    Don’t suggest me this : Get reimbursement from ITD.

    Any forum for this. Will IBA help? IT Ombudsman refuses to move against SBI
    on this issue. Is SBI above I T Ombudsman?

    Clarify.

  47. sudhir chintawar says:

    The article is informative and useful to individual tax payers for filing IT returns for A.Y.2014-15 and the tax deductors paying salary. It would have been more useful for tax deductors if the information would have been available at the beginning of the F.Y. 2013-14.

  48. Vikas Gupta says:

    Dear Sir,
    Pleased to write you. Since my job profile is to compute taxability of employees of the company & to deposit the required TDS timely, I’ve read this article and found some doubts regarding medical allowance exemption & deduction u/s 80CCG.

    To my mind medical allowance is fully taxable however medical reimbursement facility, if given by employer is exempted upto Rs. 15000/- pa provided medical bills should be produced by employee to get this benefit.

    Also, as per updated notification of income tax,1961, gross income limit has been extended to Rs. 12 lakhs i.e. employees earning Rs. 12 lakhs or less can invest their money u/s 80CCG.

    Kindly reconfirm the above & reply me if I am wrong so that I may assure that I’ve made correct calculations of TDS of employees for FY 2013-14.

  49. Atul Jain says:

    Mr.Reddy as per my knowledge there is rebate of Rs. 800/- PM on Transport allowance other than transport all allowance are 100% taxable, in case of Reimbursement of Uniform and Medical bill Rs.18000 and 15000 per year is deductable from taxable salary. please clear

  50. CA.C.Maheshwar Reddy says:

    The article is meant for the F.Y.2014-15 relevant to A.Y.2015-16. The readers may be noted the same.

  51. sk says:

    please give a brief idea whwn tds is less deducted but depositted actually by ddo/employer what is to be done by employee in such a asec

  52. Arpana says:

    Dear Sir,
    Thanq for sharing an useful article.
    Arpana

  53. Akash says:

    Please let me know what to do if the TDS deposited on salary not seprately shown as basic tax and education cess. Is there any issue in this?

  54. CA. Subhash Chandra Podder says:

    Good write up.
    CA. Subhash Chandra Podder
    30/04/2014

  55. CHANDAN says:

    Sir,

    Need more clarity on Medical Allowance.

    Medical Reimbursement (annual component) is different from MA (monthly).

    Please clarify if possible with relevant reference.

  56. MCVashishta says:

    What is the system of TDS in Govt deptt from salary and their deposit/book entry and bifurcation to different TAN and filing TDS return. As there is lot of mismatch of 26AS with Form 16.

  57. Vasanthi says:

    This is highly helpful. Thanks.

    Can you suggest an excel that automatically calculates the tax that can be shared with the employees? Please advise

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