Tds on salary

This query is : Resolved

CMA Sushant Telkikar (Querist)
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16 May 2014 The Employer has to consider Interest on housing loan while deducting the TDS on salary. In my case, the Employer took declaration in which the The date of possession is Jan 2015. whether the Interest on under construction home has to be taken into account or employer has to get copy of completion certificate from employee and then only he consider it for deduction of TDS?

@VaibhavJ

@VaibhavJ (Expert)
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16 May 2014 Hi

On employees declaration an employer can give benefit of deduction.

Thanks

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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17 May 2014 Interest during construction on Home loan can not be claimed under Income tax. It has to be accumulated and claimed over a period of five years after completion of construction.

Murtaza I Bhagat

Murtaza I Bhagat (Expert)
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17 May 2014 In my opinion,

employer has not to consider housing loan interest as deduction of under construction or not possession of house property in declaration. it will have to claim by tax payer in ITR itself because if employer take wrong deduction then employee and employer both will suffer.

deductor has to deduct tds without considering the amount of hp loan interest and if employee is eligible to get deduction then he will get refund of excess deduction of tds.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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17 May 2014 Employer can consider the claim of section 24(b) while deducting TDS on employee's salary if the employee satisfies the conditions as per clause 3.6 and 3.6.1(c) of CBDT Circular 8/2013 dated 10.10.2013

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CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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17 May 2014 I agree with the views of Mr.Chackrapani Warrier.

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