05 May 2011
While deducting tds of employees, we are required to consider other income if any. Here mostly employers consider only loss from house property. However, what would be the case when the employee is a director who draws a fixed monthly salary and on the basis of annual estimated income, monthly TDS is done. But the director also has given loan to the company and derives interest from the same which suffers just 10 percent of loan. If the interest income is included in his total income,he wud be taxable in the highest bracket. What would be the requirement from the management in tax deduction in such a case
05 May 2011
Whatever be the tax bracket. If the management has exact information of the other income of the employee, it should deduct tax considering the other income also. Alternate is that, if the company is deducting tax on interest separately, then dont consider the interest income while calculating TDS on salary.
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