Tds then salary

TDS deducted on salary, when the salary is exceeding the exemption limit.

Who makes the TDS for an employee? An employer or the company i.e source of salary income for the employee.

When is TDS deducted? When the employer makes payment of salary to his employee. Which means only net salary (salary without TDS) is credited to the employee's account.

How much to deduct? The income tax slab rates and relevant percentage is used for deducting tds.

In many cases, the entire salary is credited to the employee's account. In this case, the tds is not deducted and the employee while filing return will pay his tax liability in the head of Income from salary.

 

 

Hi Ekta,

TDS on salary should be deducted when the salary of employee exceeds basic exemption limit after considering chapter VI A deduction.In case TDS is not deducted by employer entire expense relating to employee expense will be disallowed and increase tax liability.

A warm thank you all for your guidence and help. Got the concept.

i think summer is right

what you think it doesn't matter, but yes, TDS should be deducted when salary due or payment, whichever is earlier.

and TDS should be deducted only if Employee get gross salary over basic exemption limit as per Income tax act.

Tds is deducted while on due or payment basis tds should be deducted an average rate nothing but employer should deduct any savings declared by employee after that it exceeds basic exemption limit should deduct tds here tds deduction is done in two ways. In case of govt deductor it can be paid through book entry in case of non govt deductor is paid through challan

Tax Deduction at Source is one of the primary obligations of the employer. Therefore, from the monthly salary of every employee who is expected to cross the required income exempted from income tax TDS should be deducted. The amount of tax deducted shall invariably be depended on the availability of proof of tax savings investments submitted by each employee. Therefore, for each financial year you may collect declaration from the employees of their tax saving investments and proof thereof.

 

Dear Ekta

 

1st of all, decide the salary structure like Basic, TA, Medical, HRA etc. & get details of the Other Income of the employee & declaration for Investment. Than check the Taxable Salary and applicable TDS on that.

Divide the Tax (TDS) in equal instalment and deduct from salary payable.

Collect all the required Investment Proof, Rent Receipts, Medical Bills etc before 15th March. If there is any shortfall in TDS deducted, deduct the same from March Salary.

 

Regds