Deduction of TDS on Salary

Hi every one

I am fixed in a problem which is that on what amount TDS should be deducted on Salary if the employee has taken some leaves during the year?

Example

Mr. X has a salary of Rs. 3,00,000/- and assume company at the beginning of the year compute his tax liability of Rs. 12,000/- & hence deduct Rs. 1,000/- from his salary each month as tax. If he during the year takes the leave and he eventually got Rs. 2,50,000/- then what will be his tax liability

Thanks in advance

Replies (15)

 

You can re-estimate assess tax liability and than you can short deduct tds 

hi mayur arora,

 

re compute the tax liability of that person & adjust the TDS Accordingly

 

Hi, I am new member in this forum. I need a clarification regarding TDS for contract employee.

My wife is working as a doctor in a PVT hospital. She is an independnt/contract employee as per their records.She joined on Feb 1st 2011. We submitted PAN card details too.

Her CTC is Rs 240000(per month 20000). She received a cheque for Rs 18000 as her first salary on March 1st. Hospital HR says 10 % flat TDS cut for all employee and its not returnable.

Note: There is no EPF or gratuity for contract employees.

Her salary for current finance year will be Rs 40000(feb+March Salary)(Income tax exemption for women employee is 190000).So do we need to pay tax to govt this year?

Can we file an IT return to get the amount back?.

Is hospital mgmt cheating us? :(

 

Thanks in Advance,

SSS

 

I assume that your wife don’t have any other income and current year income will be Rs.40000/- and employer has deduct tds on it than you have to file return and you could get tds refund.

Hi Pankaj,

Thanks for your quick reply. I am a beginner in this field

She dont have any other income and this is her first job. But hospital mgmnt says, u cant file a return .I will ask my wife to double verify with HR.

What is the procedure to refund the TDS?Can you please help us by providing the income tax section mentioning about the TDS for contract employee.So we can convey this to the hospital HR.

Thanks again,

SSS

 

You should give your income detail of current financial year to the employer if its below from exemption limit than employer will not deduct tds. Or if employer has already deduct some tds than you have to file ITR to take refund of tds.

Dear Mr. SSS,

First make it confirm with the hospital mgmt. that you will be receiving the TDS deduction certificate. and make it confirm that it is actually TDS. And get the TDS deduction certificate from the hospital.

One more thing the are deducting TDS @ 10% which means they are considering her services as Professional services.

Hospital cannot deny to file the return if the says so it is possible that they may not be depositing the TDS to the government.

Thanks SAKET,

We will verify with hospital mgmt regarding TDS deduction certificate and update here.

 

Thanks again,

SSS

But for professional services threshold limit for single transaction is 30000/- and in this case its 20000/- hospital must be treating it as salary..
Originally posted by : Pankaj Arora
But for professional services threshold limit for single transaction is 30000/- and in this case its 20000/- hospital must be treating it as salary..

Hospital management has entered contract for 2.4 lacs and deducting on payment basis.

 

But for the previous amount will be pay 40000/- so how can hospital deduct tds on contract because it did no crossed threshold limit u/s 194c.

SO what ever be the case, I can file a return Right

yes you can file return.

OK. So we will check with hospital mgmt for a TDS deduction certificate and will file a return

 

Thanks,

SSS

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