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TDS Deduction on Salary-Reg

02 November 2019

My employer has estimated my Salary and bonus income for Financial Year 2019-20 as RS.4 lakhs. After deducting Provident fund of Rs.38400/, the income estimated is Rs.361600/ the tax computed is RS.5800/.The average tax per month is RS.483/. This has been deducted from my salary every month with out giving effect the rebate u/s 87 A.If the rebate is given,then the tax payable will be Nil.Is my employer's action of TDS Correct.

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7 Replies

Kumar Sushank (General Manager - Finance) (1040 Points)
Replied 02 November 2019

No, It is not correct, Your employer should consider at least Standard Deduction of Rs. 40,000/-

Then your total TDS should be (3580 + 4% Cess) before Rebate u/s 87A

Rs. 310/- per month (approximately)

1 Like

Pankaj jakhar (trainee) (151 Points)
Replied 02 November 2019

No it is not required to deduct tds.
Your tax after rebate is nil.

1 Like

prasad Nilugal ( GST Practitioner & Accounts ) (14165 Points)
Replied 02 November 2019

I think standered deduction for F.Y 2019-20 is 50000/- ,it has been increased in the Finance act 2019 , please confirm

1 Like

MEENA VIVEK (247 Points)
Replied 02 November 2019

Yes Standard deduction for financial year 2019-20 is RS.50000/ correct.

Sreevidhya V (339 Points)
Replied 02 November 2019

The rebate is available to a resident individual if his total income does not exceed Rs. 5,00,000. The amount of rebate shall be 100% of income-tax or Rs. 12,500, whichever is less. so in your case if income doesn't exceed 5 lacs then no need to deduct tds

1 Like

Kapadia Pravin (17249 Points)
Replied 03 November 2019

Your Employer's action to deduct TDS is not correct.

He should take into consideration rebate available under 87A . TDS will then become NIL.

sabyasachi mukherjee (26043 Points)
Replied 03 November 2019

At the beginning of financial year the finance department issued a circular for employee to give details of tax investments.
After the details are given the concerned officer gives an estimation it may more or less in order to have a equitable deduction from the employees salary and to hv a parity.
In this case ,Meena obviously you will get a relief.
Wait till the end of the financial year.