TDS/Salary

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When calculating Form 16 for an employee who joined mid-year, the standard deduction of £50,000 for TDS/Salary purposes should be applied in full, not on a pro-rata basis. You need to consider their total income for the entire financial year, including any earnings from previous employers, before computing the tax and deducting TDS.

jaya

jaya (Querist)
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30 June 2022 hi,

my question is, suppose a person joins us in september'21 and stays till now so when we make his/her form 16 then we sud give standard deduction (of Rs. 50k)on pro-rata basis or fully?

PURUSOTTAM PANDA

PURUSOTTAM PANDA (Expert)
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30 June 2022 Standard Deduction of INR 50,000 is set by default. Thus, the application of Pro-rata basis doesn't arise.

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Gokul Sharma

Gokul Sharma (Expert)
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01 July 2022 you have to consider his full year of income (Including Previous Employer) and then compute tax allowing full 50000 standard ded. and then deduct TDS Accordingly.

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