How I can avoid deduction of TDS on my salary income

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This query is : Resolved

Sanjay Sharma (Querist)

22 July 2011 Hi guys, I am woking in P ltd co and since last december and now my emploter has deducted TDS on my salry.

Plese suggest me that How I can escape from TDS on my salary Income by my employer?

Should I submit a request to my employer for non deduction of TDS?

As my Gross Income from Salary is not taxable and I do not have income from other sources.

My Expenditure and Investements are as follows:

House Rent PM Rs. 6,000/-
LIC paid PA Rs. 6,800/-

My Salary Structure is as follows:

PAY SLIP FOR MONTH OF April’ 2011
Emp. Name Ramesh Signgh Working Days 30
Designation Lead Leave Ope. CL/EL/ML 2/0/0
Department BU2
PF # Leave Taken 0
Bank A/C No. Leave Adjusted 0
Leave Balance CL/EL/ML 2/0/0
Salary Rs. 21000 Leave Deducted 0
Days Paid For 30
DOJ 13/12/2010

Pay & Allow Rs. DEDUCTIONS RS.
Basic Salary 10500 Employee Pf 0
HRA 5250 TDS 0
Conveyance Allow 800 Staff Loan 0
CCA 2625 Salary Advance 0
Special Allow 1825 Other Deduction 0
Incentive 0 Employee ESIC 0
Arrears 0 PT 0
Adhoc Allowance 0

Total Earning 21000 Total Deduction 0

Net Salary 21000

Plese suggest me solution for non deduction of TDS on my salary

I will be greatfull to you.

Thanks and Regards,

Sanjay

CA. DINESH KUMAR

CA. DINESH KUMAR (Expert)

22 July 2011 1) You have not mentioned your place of residence so it is assumed the place of residence is other than delhi,kolkata,mumbai and chennai. So, HRA shall be exempt upto least of following:
a) 5250
b) 4950
c) 4200
So your HRA is exempt upto Rs 4200/- p.m.
2) Conveyance allowance is exempt upto actual expenditure so in the absence of full information is has been treated as taxabale.
3) It is assumed that there is no EPF deduction
On the basis of above your taxable salary is Rs 16800/- p.m.
As above your GTI is Rs 201600/-
Deductions:
80C 6800

Taxable ncome 194800

Tax 1480
E.Cess 44
Total Tax 1522

However, if you are residing in Delhi Kolkata Mumbai or Chennai then your HRA shall be exempt upto Rs 4950 and your taxable income shall be 185800 and tax thereon shall be 597/-

As in both cases, there is tax due on tentative yearly income, so you can not deny TDS.