Double benefit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 September 2012 my employer deducted tds in my early salary 540000-2500=537500 than 537500-100000(investment)-180000=277500 than after his calculate tds on 277500 its correct pl help mi...its urgent

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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18 September 2012 Yes, it's correct your total income is Rs.437500(540000-2500-100000). For A.Y.2013-14 tax rate is upto 2 lacs nil from 200001 to 500000 10% so your total income(i.e taxable income comes under this slab) thus you total taxable income is taxable at the single rate i.e 10% so the deduction of TDS is correct.
But for A.Y.2013-14 basic tax exemption limit is Rs.200000. Based on your question your employer considered it as Rs.180000 so except this the deduction of TDS is correct.

In case you haven't Rs.100000 investments then indicate your actual investments to the employer based on it he will deduct TDS.

So your employer deducting more TDS than required(assume you have Rs.100000 savings) on Rs.20000. Else this nothing but mistake.

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