service
719 Points
Joined June 2007
Employer should consider the followings only for the purpose of TDS on salary:
1. Salary to be paid by the employer to employee.
2. Deduction u/s 80C/ 80D/E
3. Other income reported by the employee. If the employee reports negative income then employer cannot consider the same. Only positive in came has to be considered for the TDS purpose. Employee can claim the same on his individual return.
Only exception is the Interest on Housing Loan which is a loss income and employer can consider the same.
Thus donation is not alloowed to be considered.
The emplouyee can consider the same in his own individual return.
Please note that due to this there could be refund to the employee but employer has no choice left and has to deduct TDS and employee has to claim refund later.