TDS on Salary

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As a proprietor, you may need to deduct TDS on salary payments if the employee's income, after considering eligible deductions for investments, exceeds the taxable threshold of £250,000. If your employees have made no investments and their total salary after deductions falls below £500,000, no TDS deduction is required for FY 2019-20. Refer to CBDT circular 4/2020 for detailed guidance.

seeta

seeta (Querist)
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28 July 2020 I am proprietor paying salary to Mr.A Rs.372000.00 and Mr.B Rs.283000.00 in the FY 2019-20.

My question
(i) Should I have to deduct TDS or not?
(ii) what is the amount of TDS?

Please reply

priya

priya (Expert)
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28 July 2020 One needs to deduct TDS, if salary after permissible deductions exceeds minimum amount chargeable for tax., that is 250000. Ask your employess if they have made investments in insurance premiums, medi claim, house property loan etc. If after deductions there salary exceeds 2,50,000/-, then you have to deduct TDS at average rate.

seeta

seeta (Querist)
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28 July 2020 Employees has not made any investment

priya

priya (Expert)
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28 July 2020 NO TDS Shall be deducted as Salary after deductions is under 500000/-

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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28 July 2020 No need to deduct income tax since taxable income is less than Rs. 5,00,000/- Please refer CBDT circular 4/2020 dated 16-01-2020.(example-1 ,page 49)

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