Regarding tds on salary

TDS / TCS 864 views 12 replies

Hi

One of our employee having salary around Rs 2.5 lacs P.A. and after calculating all exemption  his taxable salary is cuming 50000/-.

Now my question is our company have not deduct the TDS on his salary. so company is liable to deduct the TDS or he can pay that tax amount by way of Self assessment before 31st july.

 

Replies (12)

since his taxable salary i.e; 50000 is not exceeded basic limit..there is no need of deductiong TDS..he can pay by self assessment before 31st july..

Hi friend

whats the basic limit

for Individuals it is 160000..if the taxable salary exceeds 160000 then he wil be liable to pay TDS 

no need to deduct tds

no need to deduct tds

Hi friend

I am talking about company liablity of Tds deduction

Yes Chetan..company need not  deduct TDS of the employee u mentiones since his iNcome doesn't exceed 160000..

TDS has to be deducted. I think Sasank has  misinterprete. The Annual Salary is 2.5 Lacs P.A. and after all deduction and exemption of  Rs 160000/- taxable salary i.e. Taxable income comes to Rs 50000/-

TDS to be deducted (10.3% of Rs 50000/-) = Rs 5150/-

sir..he saying the net income..he not included exemtion limit 160000..so how can he deduct TDS?

Originally posted by : chetan


Hi

One of our employee having salary around Rs 2.5 lacs P.A. and after calculating all exemption  his taxable salary is cuming 50000/-.

Taxable Salary here means Salary liable for tax after exemption and deduction.

That is what he must be saying.

 

under a 2.5L annual salary, 2 lacs deduction is not possible unless "house proprty loss" is taken in account, 80C max 1.00, 80D max 30

so the observation of sanjay gupta seems appropriate. 

In the employement there will be HRA exemption about 40% to 50% of basic and medical reimbursement exemption of 15K. It can also have LTA exemption as well. Hence there is a posibiliy of the net taxable income being arrived at 50K after chapter VIA deductions.

Since the net taxable income will be less than the basic exemption limit of 1.6 laks for the individual male there need not be any TDS.

However, if the person does not have a PAN the tax has to be deducted @ 20% as per sec. 206AA of the IT Act, on Rs.50,000/=


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