Tds on salary

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 December 2015 Mr. X worked in a company form 01.04.2015 to 31.10.2015 i.e. 7 Months. During this period he received Basic Salary Rs. 30000/- P.M., HRA Rs.7500/- P.M. and LTA Rs. 6000/- P.M.
His total earning for that period is Rs. 304500/-. He submitted proof of investment u/s 80 C for Rs. 60000/- to the employer. Now the question is :-
1. whether the employer is required to deduct TDS on salary assuming that Mr. X will earn same salary for the next 5 month
2. whether company can give full exemption of Basic limit of Rs. 250000/- or it should be reduced to Rs. 145833/- on pro rata basis.

Please suggest

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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19 December 2015 For Calculating Tds you can take entire Rs.250000/- Exemption So He will not come under Tax Purview , If he gets any Income After 01st November He has to Declare and has to discharge Tax.