In our pvt. ltd. company, we appointed a design engineer agreed to pay Rs. 70000/- (gross pay) in Sept-2015. Now we have to deduct TDS on salary, then What will be basic IT exemption for FY 2015-16 (Rs. 250000/- or consider only of 7 months)? What will be treatment for his investment, whether for whole full year or consider for 7 months only?
09 January 2016
Dear Ask him to provide details of the income earned from april to aug. Also ask him to provide any investment in tax saving schemes. Then accordingly deduct TDS.
01 February 2016
Take declaration of income. You have to confirm whether any income from previous employer, and income, extent of TDS deducted by previous employer, you have to calculate present employer salary portion. For deduction you can consider entire year savings Upto 150000 under 80C & 80 D medic claim Benefit. Basic exemption is 250000/-. HRA Benefit & other benefits CA you have to calculate for 7 months for your tax workings.
08 February 2016
Thanks for your valuable reply sir. Please advise if person employed from 1st Sept 15 with Salary Rs. 70000/- monht (Basic 50000/m, HRA 10000/m, Conveyance 10000/m) and previous salary was Rs. 50000/m (basic 30000, HRA 10000 & conveyance 10000) then what will be correct computation for Income tax? 1 option : Total Income for FY 15-16 :- 490000 (For 7 months only) Less : PT :- 1500 Less : Conveyance Allowance :- 11200 Less : LIC Payment :- 64498 Less : Home Loan Pricipal :- 85502 Less : interest on home loan :- 200000 Taxable Salary :- Nil/- Net Income Tax :- Nil/- &
2 option Total Income for FY 15-16 :- 740000 (70000*7 - for 7 months)+(50000*5 - for previous salary taken) Less : Tax on Employment :- 2500 Less : Conveyance Allowance :- 19600 Less : LIC Payment :- 64498 Less : Home Loan Pricipal :- 85502 Less : interest on home loan :- 200000 Taxable Salary :- 367900/- Net Income Tax :- 12144/-
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