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Tds on salary - tax exemption - fy 14-15

JD ( Business) (352 Points)

28 January 2015

Dear All,

We have been deducting TDS on salary as per govt rules , As year end for FY 14-15 is in sight I hear we have to collect the following bills / receipts from the employees for tax exemption,

House Rent
Home Loan
Telephone/ Petrol Reimbursement etc.

But once in receipt of the bill/receipts from the employess what would be the next step & how would we exempt the tax.

I am a newbie to all the above issues & need your kind help.

Thanks in advance

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12 Replies

Arpit Shah (Accountant) (21438 Points)
Replied 28 January 2015

Tell Your Employeees to fill Investment Declaration Form with proof that will help you to deduct tds frm salary

Attached File : 897463 1400797 investment declaration form 14 15.xls downloaded: 286 times

1 Like

JD ( Business) (352 Points)
Replied 28 January 2015

@ Arpit shah

Sir,

Thanks for the info, But how to go further after receiving the filled information from the employees on the declaration form.

Thanks in advance

@VaibhavJ (Believe!! Live your dreams!) (33511 Points)
Replied 28 January 2015

Did you collected Investment declaration in the beginning of the year for HRA/Home Loan/80C etc??

JD ( Business) (352 Points)
Replied 28 January 2015

@ Vaibhav J

NO we havent collected investment declaration at the beginning of the year.

Arpit Shah (Accountant) (21438 Points)
Replied 28 January 2015

Collect It And Less Tds As Employee who is eligible in tax Liability

1 Like

@VaibhavJ (Believe!! Live your dreams!) (33511 Points)
Replied 28 January 2015

Originally posted by : Jeff
	@ Vaibhav J NO we havent collected investment declaration at the beginning of the year.

so it means you have not followed IT rules, also i assume you must not be deducting TDS every month??

Pls share your company policy to guide further.

Thanks

@VaibhavJ (Believe!! Live your dreams!) (33511 Points)
Replied 28 January 2015

Genrally you need to collect actual bills & validate its authenticity and grand exemption against Taxable income of an employee..

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Arpit Shah (Accountant) (21438 Points)
Replied 28 January 2015

You first shortout employee list you below or above tax liablity

then collect declaration form and deduct tds frm them.......

1 Like

JD ( Business) (352 Points)
Replied 28 January 2015

@ Arpit Shah,

Shortlisting has been already done as per tax liability.

Sahil Bhatia (Practicing Chartered Accountant) (290 Points)
Replied 29 January 2015

For individual employee you need to enter these details in your TDS software in the salary details section. This would give them deduction and hence exempt the tax on that specific amount for which you have proof.

1 Like