Dear All
Please help to understand the definition of taxable salary for the purpose of ETDS returns to be submitted quarterly for Salary TDS. The coloumn heading of the Form 24 is 'Taxable Income on which tax deducted' but how can we calculate the taxable income of salary on monthly basis as the tax is deducted on salary after calculating the tax liabilty of annual salary.
Does Income tax act clarify the above query. If we need to report the taxable income do we require to eliminate the exemptions of section 10 and deductions of 80C also. What treatment needs to be done for reimbursements which are paid as non-taxable.
These days employees are trying to reconcile the taxable income reported in 26AS with the Form-16. So we need to report the correct figure in ETDS return.
Gulshan
CAclubindia
