1.Which amount is considered as Salary income of an employee for tax deduction-
a) Gross pay after Lop Or CTC (As employer contibutes to PF,ESI & Labour welfare fund over gross pay of employee.
2)What are consequences of false deduction given to employee Or deduction given without documents
3)Is there any disallowance for non deduction of salary tds by Company.
4)Is there any limit to be considered for tax deduction,company normally considers gross salary in exces of Rs.25,000/-.
Gross amount needs to be taken as total income, and thereafter deduction of PF will be allowed as a deduction from Gross amount. Net amount should be calculated as taxable salary.
For non deduction of TDS, salary expense will be disallowed in computation of employer. Also, he will be liable to pay interest as well as penalty depending upon each case.
There is no limit as such to be considered. But employer should calculated the taxable income as gross income less PF less investments under section 80C to 80U except 80G. If taxable income is above the taxable limits of Income tax, employer needs to deduct tax every month as and when applicable.
Is disallowance for non deduction of salary specified in Tax Audit report.
Can anyone quote the clause applicable & in which year from it is made mandatory for employer to deduct td.
(Please refer section 206AA and Circular No.8 dated 13.12.2010). - hope it will help you
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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