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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)

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)

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)

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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