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Discussion > Income Tax > TDS >

TDS @ 20% on salary

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Accounts Officer


[ Scorecard : 243]
Posted On 29 September 2011 at 10:32 Report Abuse

Dear All

How Tds @ 20% is applicable on salaries and on what basis tax to be deducted

For Eg:- One employee is drawing monthly salary of 19000/- having no PAN

Which is the right option to deduct tax

A)19000*12= 228000 - 180000 =48000*20% =9600*3%=288 so total 9888/12 =824pm

B) 19000*20% = 3800

A or B is applicable ?, pls explain


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Jayesh
Internal Auditor


[ Scorecard : 214]
Posted On 29 September 2011 at 10:35

Option A is right. However, rate must be 10%(as per slab). Why are you applying 20%?





Ajay s
Accounts Officer


[ Scorecard : 243]
Posted On 29 September 2011 at 10:43

Am not agreeing with you jayesh , pls read my querry fully




Member (Account Deleted)
Student


[ Scorecard : 76]
Posted On 29 September 2011 at 10:45

If employee has not furnished his/her PAN no. then TDS will be deducted @ 20% which is higher than the apllicable rate of 10% in the present case. This is as per section 206AA.

Methodology A sholud always be followed for deducting TDS from salaries as tax is chargeable on "estimated net taxable income" after providing for all the allowable deductions under sectoin 80C, 80D, PF, etc. whichever applicable.




CA ADITYA SHARMA
CA IN PRACTICE


[ Scorecard : 16661]
Posted On 29 September 2011 at 10:55

1st option is right                           




Jayesh
Internal Auditor


[ Scorecard : 214]
Posted On 29 September 2011 at 11:03

Hey Ajay, m sorry, 20% rate is correct (since PAN is not available). But still, option A would stand correct.




Akhil Sharma
Service


[ Scorecard : 126]
Posted On 29 September 2011 at 11:17

Option A is OK.




RAKESH SAH
Executive (Finance)


[ Scorecard : 109]
Posted On 29 September 2011 at 11:18

Option A is right.




CA PRAVEEN SINGH
MANAGER ACCOUNTS


[ Scorecard : 2237]
Posted On 29 September 2011 at 11:27

My Dear friend , option( A) is always followed,if PAN number is provided....as per normal rate of tax....u should also considered,deduction of sec80.....

Option( B) is followed when no pan is provided...ie...Rate is 20%....

agree with,Mr Ravi.......



Total thanks : 1 times



valji
Accounts manager-MBA


[ Scorecard : 2114]
Posted On 29 September 2011 at 11:31

agreee with ravi



Total thanks : 1 times


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