01 October 2014
No eligibility. All companies are required to deduct TDS on Salary u/s 192. If the salary is becomes taxable as per slab after all deductions and exemptions then TDS is deducted proportionately from salary over the Financial year.
01 October 2014
TDS ke liye gross salary consider ki jati hai and Annual Income from Salary project ki jati hai. Projected taxable income k upar TDS calculate ki jati hai.
Say Gross Salary per month is Rs 50000/- per month. Deduction u/s 80C Rs 150000, HRA Deduction Rs 30000/-, Dedction u/s 80D Rs 20000/-
Exemption limit for individual is Rs 250000. So here taxable salary is
(50000*12)-(150000+30000+20000) =400000 Now calculate Tax on Rs 400000/-. It will be 15450 Now this estimated Tax liability will be deducted proportionately every month ie., (15450/12)= Rs 1287.50. Tax after final calculation will be deducted in March.