TDS Deduction on salary income by Company.

I pay around 6 Lakhs per annum salary to each of my employees in my company. They file tax returns under the new regime. I want to ask do I need to deduct TDS from the salary as it exceeds the basic exemption limit or I don't need to as they will get it all refunded because it is less than 7 lakhs which is tax-free as advised by my CA.

Replies (5)
Quick Summary
This discussion clarifies whether TDS needs to be deducted on salaries paid to employees under the new tax regime, especially when their total income, including other sources, falls below the tax-free threshold of ₹7 lakhs. It highlights the importance of collecting employee declarations (Form 12BB) for other income and investments to accurately compute taxable income and ensure full compliance. The consensus is that if the total income remains below ₹7 lakhs under the new regime, TDS may not be required, but collecting all relevant financial details from employees is crucial.

Yes!!

No Tax Shall be payable by Employee's.

Meanwhile arrange to collect declaration from employees in Form 12BB towards Other income earned and investments made.

This will ensure compliance in full.

Thanks

Yes, I agreed with Mr CA Hemant Khatri...

@ Mr.Sanjit Kumar.,

Collect details of Deductions (and Any other Incomes) from employees. After that you can compute their Income under taxable or not... Also discuss them for compute the income under Old Tax Regime or New Tax Regime...

You can consider from Your side
- standard deduction
- EPF
Not oossible

So you mean to say I don't need to deduct TDS if their total income including their other income is less than 7 Lakhs...Right?

Originally posted by : Sanjit Kumar
So you mean to say I don't need to deduct TDS if their total income including their other income is less than 7 Lakhs...Right?

Yes, If it's under New regime.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register