CHARTERED ACCOUNTANT
105 Points
Joined July 2008
Hai..
There is no need to calculate salary for whole year and need not deduct TDS on monthly basis. TDS on salary is to be deducted only when the payment is made (sec 192 B). so TDS is to be deducted only when the amount paid to employee crosses the basic exemption limit.
But practically it is deducted on monthly basis because to reduce the burden of the employee. For example if employee receives 16000/- per month, then his income will exceed 180000/- in 12th month. so TDS amount of 1200/- is to be deduced in last month salary. if deducted monthly then 100/- every month so employee may not have big deduction in his salary.