TDs deduction

Mr.Senthil GJ

1. an employee can claim the following deduction from his salary income depenidng upon his eliigibility

(i) LTA - Leave Travel Assistance u/s 10(5) subject to conditions laid down in the section and in the prescribed rules.

(ii) Allowances or perquisites paid or allowed as such outiside INdia by the Goverment to a citizen of India for rendering service outside India - Section 10(7)

(iii) the remuneration received directly  from the Government of a Foreign State by an individual who is assigned to duties in India in connection with any co-operative technical assistance programmes and projects in accordance with an agreement entered into by the Central Government and the Government of a Foreign State-  

(iv) any other income of such individual which accrues or arisxes outside India and is not deemed to accrue or arise in India in respect of which such individual is rewquired to pay any income or scoical security tax to the Governent of that foreign state

the above deductions are avaialbel u/s 10(8)

(v) similar deduction is also available u/s 10(8B) for the remuneration received from a consultlant as referred to in section 10(8A)

(v) Death cum retirement gratuity u/s 10(10)

(vi) Payment in commutation of pension u/s 10(10A)

(vii) Leave Salary u/s 10(10AA)

(viii) Compensation received under the Industrial Disputes Act, 1947

(ix) amount received on voluntrary retirment u/s 10(10C)

(x) Certain perquisites within the monetary limits and withing the meaning of clause (2) of Section 17 - under section 10(10CC)

(xI) sum received under life insurance policy u/s 10(10D)

(xii) payment received from a provident fund u/s 10(11)

(xiii) the accumlated balance due and becoming payable to employee participating in a recognised provident fund to the extent provided in rule 8 of Part A of the Fourth Schedule

(xiv) any payment from approved super annuation fund

(xv) HRA  u/s 10(13A) subject certain limits as provided under the prescribed rules

(xvi) any special allowance subject to certain limits

I shall continue the reply. please bear with me

Best Wishes

Sathikonda

Mr.Senthil GJ

An employee also can claim deduction of interest paid to acquire/construction of a residential house.  This deduction should be claimed under the head income from house property.  If the resultant figure is negative such loss from house property can be set off against salary income.

An employee also can claim deduction u/s 80C and 80G. 

Regarding your secon question-

The splitting up of salary depends on the contract entered into by and between the employee and the empoyer.

To deduct tax at source (TDS) from the payment of an employee, his annual salary should be arrivied at  and tax is to be computed thereon. The tax payable on the estimated annual salary should be divided by 12 to arrive at monthly deduction of tax at souce (TDS) of that particular employee.

TDS returns are to be filed reqularly as provided in section u/s 206.

On completion of the financial year TDS Certificate should be issued to the employee in Form No.16.

Please note-

If you do not file the TDS returns the credit for the TDS will not be given to the employee even if  you deduct and pay tax to the credit of Central Government.  The emplyee will have to face the difficulties.

Best Wishes

Sathikonda

HI Sathi

Thanks for your details

Rgds

Senthil