Query on TDS

2.06% in case of payment is less than Rs.1 crore, otherwise, 2.266 %

Dear Sirs, This is against income tax deduction for an employee in our company. His estimated Income Tax liability for the financial year works out to Rs.24000/- (excluding SC & cess) after considering the exemptions. In which case my query is a) whether the deduction from monthly salary for a period of 12 months should be Rs.2000/- or b) deduction Rs.2060/- (including cess 3%) per month. In case of option (a) - at the end of financial year total tax deducted will be Rs.24000/- (2000 x 12). The balance tax if any could be calculated and accordingly cess @ 3% could be added. In case of option (b) - at the end of financial year total tax deducted will be Rs.24720/- (2060 x 12) and no tax liability will be there at the end of March. My query is to whether monthly deduction and remittance to IT dept should be based on option (a) or option (b) Best Regards S. Anand

For claiming refund of TDS you have to file tax rteurn within the prescribed period i.e. by 31st March of relevat assessment year