TDS on Salary

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CPA Partha Sengupta (Querist)

11 October 2008 Hi all,

Kindly resolve the following queries:

1. An employee (has taxable income) gives a written declaration to the employer stating that Tax not to be deducted from his/her salary for the time being until further intimation. Should the employer accept such declaration? Or the employer should ask for a certificate from ITO for non deduction of Tax or TDS at lower rate?
2. How TDS amount on Salary is to be calculated /determined by an employer?
3. Should employer release salary applying proportionate TDS every month or it can also be deducted during those months closer to the end of financial year (Jan to March)?
4. Is it obligatory for the employer to collect all the proofs/supporting documents/receipts etc. in respect of deduction/IT benefit claimed by an employee? Or only a written declaration from employee stating investment status is sufficient?

Please specify the related provisions of I.T Act if applicable to above queries.

Thanks in advance.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

12 October 2008 1.Last sentence of the question is the answer.
2&3.May apply proportionate TDS every month.
4.Employer should satisfy the genuineness of the claim put forward by the employee. Better to see the proof.

O.D.SHARMA

O.D.SHARMA (Expert)

12 October 2008 Dear,U give entitled exemptions ( U/S 80C,80D,housing loan ,Rent Etc on proof basis) on the proof provide/ last years investment basis.Monthly tax deduction * deposit is the waht I T act says.Let employee give the computation ,After checking .Please deduct TDS rates applicable.simply declaration cannot be accepted by Employer.s