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Tds on salary

Praveen Kumar Agarwal (Accountant) (180 Points)

12 September 2012

whether it is a duty of employer to deduct Tax from his employee's salary whose Annual salary is not crossing the basic exemption limit?

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15 Replies

Hemant Kumar (Accounts Manager MBA (Fin) CMA*) (6450 Points)
Replied 12 September 2012

There will be no need to deduct tds from employee salary, if employee income not more than exemption limit.

Varshit Shah (Self Employed) (676 Points)
Replied 12 September 2012

If Net Taxable income is less than Maximum amount not chargeable to Tax than no one is require to deduct tax.

Net Taxable Income = All incomes - Loss from House Property - Deduction Under chapter VI (ie Sec.80 deduction)
Note : You can not consider Deduction U/s 80G while calculatin TDS on salary.

Mukesh Babu (IPCC Student) (236 Points)
Replied 12 September 2012

No need to Deduct TDS if the net Income is less than the basic exemption Limit

Because there is no question arise for Income Tax if Net Income is lower than the basic exemption limit

HARISH BANSAL (student) (229 Points)
Replied 12 September 2012

Dear Varsh*t Shah,

Pls give a link/reference ,Where it is written that Sec80G is not consider for Taxable Income for Salary.

Anil Dandu (CA FINAL) (205 Points)
Replied 12 September 2012

no need to deduct TDS when salary is below the basic limited after deducting all employee savings.....................

Varshit Shah (Self Employed) (676 Points)
Replied 12 September 2012

Dear Harish

Circular No. 11/2006

CA PRAVEEN SINGH (MANAGER ACCOUNTS) (2277 Points)
Replied 12 September 2012

Originally posted by : Hemant Kumar
	There will be no need to deduct tds from employee salary, if employee income not more than exemption limit.

Agree.....

Revanth (Job) (145 Points)
Replied 12 September 2012

No need to deduct tax in such cases

DEEPA VYAS (CA ) (2039 Points)
Replied 12 September 2012

As income is less than basic exemption limit ,there is no liability of tax so no need to deduct tax in such case

KUMAR PAL (ACCOUNT OFFICER) (21 Points)
Replied 12 September 2012

If,your income is less than exmption limit,there is no need to deduct TDS.if by mistake employer has deduct tds you can ITR file for refund.

sadashiv Rupchand Gaikwad (Proprietor) (521 Points)
Replied 12 September 2012

No TDS is required below taxable income

Gunjan Tulsyan (Article) (222 Points)
Replied 12 September 2012

The bsdic duty of the employer is to get all the details of sources of income of his employee and the investments made by him and if his salary is not exceeding the exemption limit then make sure his net taxable income id not exceeding the limit so as to be sure as to whther to deduct tax or not...!!!