TDS on salary
This query is : Resolved
06 February 2010
Gross Salary of employees is divided into
Basic Pay
Conveyance Allowance
Information & Upgradation Allowance
& Uniform Allowance
Whether employer shall deduct tax at source on gross?
or the employer has an option to keep a declaration that the allowances are fully utilised for official work?
Basic Pay
Conveyance Allowance
Information & Upgradation Allowance
& Uniform Allowance
Whether employer shall deduct tax at source on gross?
or the employer has an option to keep a declaration that the allowances are fully utilised for official work?
07 February 2010
TDS is only to be deducted on the net amount taxable to employees, if an organisation is making payment regarding conveyance allowance or for transportation allowance and the same are fully utilized, same will be deducted from gross salary, we can understand the same in different view also.. for example your gross salary is 500000.00 and it includes medical allowance or conveyance allowance, children allowance than sum of above will be reduced from gross pay and net will be considered for taxable limit.
CA.ViVeK M ACA
(Expert)
07 February 2010
TDS shall be deducted to taxable salary portion
What is taxable salary?
Gross salary
Less deductions/Exemptions
Taxable salary
Apply the slab rate of tax applicable for the individual....
What is taxable salary?
Gross salary
Less deductions/Exemptions
Taxable salary
Apply the slab rate of tax applicable for the individual....
CMA Ramesh Krishnan
(Expert)
07 February 2010
Yes. we need to calculate the tax of the persons and deduct based on the calculation
07 February 2010
What if the allowances are paid on fixed basis and not reimbursement?
07 February 2010
IF ALLWANCE ARE PAID ON THE FIXED BASIS THAN SAME WILL BE TAXABLE LOGICALLY...BUT IT HAS BEEN OBSERVED THE SAME ARE CLAIMED AS DEDUCTION
CMA Ramesh Krishnan
(Expert)
09 February 2010
Yes. Fixed basis allowance generally taxable
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