TDS On Salary

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 November 2010 Hello Sir,

My Query - A Employee(male)whose gross salary is Rs. 3 lakhs per annum but taxable salary is 2.5 lakhs.

If he do not have PAN number then how much % of TDS applicable for him.

Also tell me TDS is applicable on gross salary or Taxable salary. Please clear my doubt.

Thanks for ur help.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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04 November 2010 TDS to be deducted on Taxable salary @ 20% if PAN not provided.
Say you are paying salary Rs. 300000/- p.a.
You are paying traveling allowance 9600/- and deducting PF from his 40400/-

You will deduct TDS on Rs. 2.5 lacs. @ 20%.

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CA. Aryendra

CA. Aryendra (Expert)
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04 November 2010 Completely agree with but i think the deduction of TDS on salary is required as under:

- Normal TAX on tasable income or
- Tax @20% Whichever is higher

Particulars When salary is Rs. 13,50,000
Taxable salary on which tax is deductible Rs. 13,50,000

Normal tax Income-tax Rs. 2,59,000

Add: Education cess at the rate of 3% Rs. 7,770
Total (a) 2,66,770

Tax under section 206AA
Tax at the rate of 20% on taxable salary (b) 2,70,000

Tax deductible under section 192,
read with section 206AA [(a) or (b),
whichever is more 2,70,000

Particulars When salary is Rs. 14,00,000

Taxable salary on which tax is deductible 14,00,000

Normal tax Income-tax 2,74,000

Add: Education cess at the rate of 3% 8,220
Total (a) 2,82,220
Tax under section 206AA
Tax at the rate of 20% on taxable salary (b) 2,80,000

Tax deductible under section 192,
read with section 206AA [(a) or (b),
whichever is more 2,82,220

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