Tds on high salary employee

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ranjit (Querist)

09 January 2016 Dear Sir

In our pvt. ltd. company, we appointed a design engineer agreed to pay Rs. 70000/- (gross pay) in Sept-2015. Now we have to deduct TDS on salary, then
What will be basic IT exemption for FY 2015-16 (Rs. 250000/- or consider only of 7 months)?
What will be treatment for his investment, whether for whole full year or consider for 7 months only?

Please

Ankur Singhal

Ankur Singhal (Expert)

09 January 2016 Dear
Ask him to provide details of the income earned from april to aug. Also ask him to provide any investment in tax saving schemes.
Then accordingly deduct TDS.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

09 January 2016 The prescribed form under Rule 26A is Form No 12B . It has to be obtained from the previous employer.

ranjit

ranjit (Querist)

11 January 2016 Thanks a lots sir

ranjit

ranjit (Querist)

11 January 2016 Thanks a lots sir

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)

01 February 2016 Take declaration of income. You have to confirm whether any income from previous employer, and income, extent of TDS deducted by previous employer, you have to calculate present employer salary portion. For deduction you can consider entire year savings Upto 150000 under 80C & 80 D medic claim Benefit. Basic exemption is 250000/-. HRA Benefit & other benefits CA you have to calculate for 7 months for your tax workings.

ranjit

ranjit (Querist)

08 February 2016 Thanks for your valuable reply sir.
Please advise if person employed from 1st Sept 15 with Salary Rs. 70000/- monht (Basic 50000/m, HRA 10000/m, Conveyance 10000/m) and previous salary was Rs. 50000/m (basic 30000, HRA 10000 & conveyance 10000) then what will be correct computation for Income tax?
1 option :
Total Income for FY 15-16 :- 490000 (For 7 months only)
Less : PT :- 1500
Less : Conveyance Allowance :- 11200
Less : LIC Payment :- 64498
Less : Home Loan Pricipal :- 85502
Less : interest on home loan :- 200000
Taxable Salary :- Nil/-
Net Income Tax :- Nil/-
&

2 option
Total Income for FY 15-16 :- 740000 (70000*7 - for 7 months)+(50000*5 - for previous salary taken)
Less : Tax on Employment :- 2500
Less : Conveyance Allowance :- 19600
Less : LIC Payment :- 64498
Less : Home Loan Pricipal :- 85502
Less : interest on home loan :- 200000
Taxable Salary :- 367900/-
Net Income Tax :- 12144/-

Sir please advise.

Thanks in advance

ranjit

ranjit (Querist)

08 February 2016 please reply your advise

ranjit

ranjit (Querist)

09 February 2016 Please read "TDS deduction?" instead of "income tax?"

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)

09 February 2016 Tax liability is Rs.10084/- considered 2000 rebate u/s 87A

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