MEENA VIVEK 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.
Kumar Sushank (Asst. Manager - Accounts & Taxation) 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)
Sreevidhya V 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
sabyasachi mukherjee 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.