Deduction of TDS @ maximum rate

This query is : Resolved

CA Surajit Roy (Querist)
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25 October 2008 I hav withdrawn my Superannuation Fund from my Co's Fund. But TDS is deducted @30.9% from my payment. I know that exemption is not avaiulable u/s 10(13). My question is

1) is TDS deductible @ maximum rate?
2) Cant i claim TDS in my Tax filing.

Plse reply.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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25 October 2008 1)Who has deducted?(company or Fund)
2)Yes you can.

CA Surajit Roy

CA Surajit Roy (Querist)
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27 October 2008 TDS was deducted by the Fund Trust.
Is maximum TDS rate justified ?
Thanks for the reply

CA Bosu babu

CA Bosu babu (Expert)
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28 October 2008 Since Tds is deducted 30.9% , your income from salaery would have exceeded the 2.5 lakh slab but less than 10 lakhs(since surchsrge not chaerged).
Example
Salary before suppeannaution Rs.4,00,000.00

salary after supperannuation Rs.5,00,000.00

Since deduction u/s 10(13)is not available, the company has deducted the same from the superannuation fund .

if superannuation is not there then company wil deduct tax on 4lacs lik this,
110000 - 150000 = 10%
150000-250000 = 20% &
total income - 250000 = 30%

so any addition to the salary Rs.4 lacs will come to 30% slab. and you hav taken fund from your own company they knws tat your salary is > 2.5 & < 10 lacs they deducted directly @ 30.9%(30% + 3% Educational cess on 30%) and given TDS certificate to you.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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30 October 2008 Correctly explained by Mr.Bosu.

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