Tds deduction of an employee

I have am the sole propreitor of a Software Development Firm.

I hired an an employee and his cumlative salary for the assement year 2011-12 comes to around 3 lakhs.

The employee claims to have made investment under section 80c and 80ccf (1.2 lakhs )   and combined with a tax exemption of 1.8lakhs , he does need to pay any tax.

In above situation ,

  1. am I suppose to file any TDS ? 
  2. If NO, am I suppose to retain orignal  copies of his investment proofs ?
  3. Also , do i need to issue Form 16 ? If YES , how can I do that ?

Please guide 

Replies (8)

TDS is deductible only when tax liability arises after chapter VI deduction

Originally posted by : daya shankar singh

TDS is deductible only when tax liability arises after chapter VI deduction

Thanks mate for the reply

Do you i need to retain a copy of the investments made ? Also Do I need to isse Form 16 ?

HI krishna,

               first of all if this is related to A.Y. 2011-12 as you have written than for men the tax slab was from Rs.1,60,000/- and not Rs.1,80,000/-, it is Rs.1,80,000/- from A.Y.2012-13..and yes you have to file nil TDS return even if no TDS is to be deducted and you will have to issue TDS Certificate i.e. in case of salary FORM 16 and for your record you better keep photocopy of investment made by them.

my view is considering the assumption that  your business is covered u/s 44AB, i.e your turnover is above Rs.60 Lakhs or Rs.15 Lakhs if professional.

Originally posted by : Kaushik Manoj Dedhiya

HI krishna,

               first of all if this is related to A.Y. 2011-12 as you have written than for men the tax slab was from Rs.1,60,000/- and not Rs.1,80,000/-, it is Rs.1,80,000/- from A.Y.2012-13..and yes you have to file nil TDS return even if no TDS is to be deducted and you will have to issue TDS Certificate i.e. in case of salary FORM 16 and for your record you better keep photocopy of investment made by them.

Please check these links - 

https://business.mapsofindia.com/india-tax/structure/slabs-2011-12.html

https://www.pankajbatra.com/finance/income-tax-calculator-for-2011-2012/

 

They all say tax slab is 180000 

 

??

Dear Krishna

                      The link which you provided is right but its for Financial Year 2011-12, where as you have written for Assessment Year 2011-12, There is a difference between F.Y. and A.Y. as per Taxation Laws, if its related to F.Y.2011-12 then its definitely Rs.1,80,000/- but if its related to A.Y.2011-12 then its definitely Rs.1,60,000/-. So kindly reply your year...in any case you will have to file nil return and submit TDS returns and give your employee FORM 16.

Originally posted by : Kaushik Manoj Dedhiya

Dear Krishna

                      The link which you provided is right but its for Financial Year 2011-12, where as you have written for Assessment Year 2011-12, There is a difference between F.Y. and A.Y. as per Taxation Laws, if its related to F.Y.2011-12 then its definitely Rs.1,80,000/- but if its related to A.Y.2011-12 then its definitely Rs.1,60,000/-. So kindly reply your year...in any case you will have to file nil return and submit TDS returns and give your employee FORM 16.

Hi Manoj,

1) I am below 60 lacs :)  so I think  u/s 44AB does not apply . In which case I do not think I need to file nil return :) . Please correct me If I am wrong ...

2) In my case both Financial and Accounting year are the same.

 

Looking forward to your reply

 

 

 

Hi krishna, In taxation a.y. Means assessment year and not accounting year. So if its accounting year then there is no worry and also if sec.44AB doesn't apply to you then tds provisions are not for you. So relax.

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