Tds on salary for resigned employees

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 March 2014 CTC of the employee was Rs.3 lacs and he submitted investment declaration of Rs.1 lac in april 2013.
He resigned in June 2013.
Now do we need to deduct TDS ? Is it applicable since company paid only Rs.75000 for those 3 months as a salary? and lastly, do we need to collect investment proofs now from the employee? If employee is not traceable then how to treat it?

Pls reply urgently.

Amol S Joglekar

Amol S Joglekar (Expert)

13 March 2014 Normally the employers take a DECLARATION from the employee at the BEGINNING of the financial year. If the employee has reported any income under the heading "any other income reported by employee" and same is above taxable limit, then TDS needs to be deducted in this case ELSE....NO need to deduct TDS.

Querist : Anonymous

Querist : Anonymous (Querist)

13 March 2014 Thanks a lot Mr.Amol.But do we need to collect investment proofs from the employee.?

Querist : Anonymous

Querist : Anonymous (Querist)

13 March 2014 Thanks a lot Mr.Amol.But do we need to collect investment proofs from the employee.?

Querist : Anonymous

Querist : Anonymous (Querist)

13 March 2014 Thanks a lot Mr.Amol.But do we need to collect investment proofs from the employee.?

Amol S Joglekar

Amol S Joglekar (Expert)

13 March 2014 No. Not necessary at all, since you have paid 75,000. which is below taxable....