TDS on Salary

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This discussion clarifies the TDS on salary deductions for the Assessment Year 2020-21, based on Section 192. It outlines the progressive tax slabs applicable to employee salaries, starting from nil up to £2,50,000. The conversation also highlights the importance of considering employee deductions, such as investments under Chapter VI-A and other income, before calculating TDS. Even if the final tax payable is nil after deductions, employers must still report employee particulars in Form 24Q for the fourth quarter if gross salary exceeds £3 lakhs.

akash agrawal

akash agrawal (Querist)
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24 April 2020 What is basic slab above which TDS on Salary will be deducted of an employee for the Assessment Year 2020-21?

RAJA P M

RAJA P M (Expert)
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24 April 2020 Deduct TDS as per sec 192* for FY 19-20.

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RAJA P M

RAJA P M (Expert)
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24 April 2020 Deduct TDS as per sec 192* for FY 19-20.

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KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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25 April 2020 Salary slab applicable
Up to `2,50,000
Nil
2,50,001 to 5,00,000
5%
5,00,001 to 10,00,000
12,500 + 20% of total income exceeding 5,00,000
Above 10,00,000
1,12,500 + 30% of total income exceeding 10,00,000

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akash agrawal

akash agrawal (Querist)
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26 April 2020 Kaviraja Addangadi Sir, if net salary exceedds Rs. 50000, then above slab should be applicable, otherwise no TDS should be deducted?

akash agrawal

akash agrawal (Querist)
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26 April 2020 Kaviraja Addangadi Sir, if net salary exceeds Rs. 50000, then above slab should be applicable, otherwise no TDS should be deducted?

RAJA P M

RAJA P M (Expert)
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26 April 2020 If the net salary per month then TDS will be deductible. Before deducting TDS consider employee's deductions and any other incomes... Deductions like LIC, PPF, Housing loan interest and other CHA VI-A related investment.... Incomes like SB & FD account interest, IFOS and other incomes

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KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)
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26 April 2020 Yes net taxable income after all deduction exceed 5 lakh above slab applicable.

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PARAS CHHAJED

PARAS CHHAJED

(Expert)
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28 April 2020 If tax payable after deductions under Chapter VIA, interest on housing loan, standard deduction etc and rebate u/s 87A is NIL no TDS required however if the gross salary exceeded Rs.3 lakhs then irrespective of TDS being NIL the particulars of such employee are to be reported in Form 24Q for the 4 th quarter.

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Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)
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14 May 2020 Yes. Even if after claiming all the investments and deductions available TDS is nil such transactions needs to be reported in last QTR TDS return. As per Income Tax Act the deductions are deductible only if they are claimed by filling ITR for the respective F.Y. by the person. If no ITR is filled thinking that one overall has NIL liability towards Income Tax it will be a wrong thing to do as all investments and claims needs to be declared in ITR for claiming the benefit of the same.

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