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Form 16

This query is : Resolved 

11 November 2011 Dear sir If a company deduct TDS of an employee than why we cannot give exemption of his personal expenses like phone bill ,petrol bill etc because these are his expenses. why we can deduct it in his income ?

11 November 2011 TDS is deducted as per the provisions of the Income Tax Act. Income for the purpose of TDS is calculated as per the provisions of the Income Tax Act.

Accordingly, while computing TDS on salary, salary will be computed as per the provisions of the Income Tax Act. Income Tax Act does not allow any deduction from salary income, except ptofessional tax paid.

Therefore, we cannot deduct personal expenses while computing salary income.

The expenses incurred are APPLICATION OF INCOME and not incurred to earn salary income.


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