Tds on salary
Sphurti (Student) (27 Points)
27 December 2016
Why we calculate tds on salary in some cases and not in some cases??
Puja Prasad
(Semi-Qualified CA & Student)
(336 Points)
Replied 27 December 2016
Can you please elaborate your question through an example?
Sphurti
(Student)
(27 Points)
Replied 28 December 2016
Mam in general why we calculate tds on salary??
Puja Prasad
(Semi-Qualified CA & Student)
(336 Points)
Replied 28 December 2016
Section 192(1) of Income Tax Act, 1961 is as under:
"Any person responsible for paying any income chargeable under the head "Salaries" shall, at the time of payment, deduct income-tax on the amount payable at the average rate of income-tax computed on the basis of the rates in force for the financial year in which the payment is made, on the estimated income of the assessee under this head for that financial year."
As per above mentioned provision employer has to deduct TDS from the salary of employee.
Section 197(1) of the Act is as under:
" Subject to rules made under sub-section (2A), where, in the case of any income of any person or sum payable to any person, income-tax is required to be deducted at the time of credit or, as the case may be, at the time of payment at the rates in force under the provisions of sections 192, 193, 194, 194A, 194C, 194D, 194G, 194H, 194-I, 194J, 194K, 194LA 53[, 194LBB, 194LBC] and 195, the Assessing Officer is satisfied that the total income of the recipient justifies the deduction of income-tax at any lower rates or no deduction of income-tax, as the case may be, the Assessing Officer shall, on an application made by the assessee in this behalf, give to him such certificate as may be appropriate."
So, if the taxable income of the assessee is below the taxable limit there is no need to deduct TDS on salary of the employee.
CAclubindia
