Hi,
I have a proprietorship firm with annual Turnover of INR 60 Lakhs with 10 employees. Is it mandatory to deduct TDS while paying salary as we donot come under Tax Audit.
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TDS Deductions for Employees | Proprietorship Firm
Replies (14)
Not required but employees have to pay tax at the time of filing ITR
Thank You @ Eswar Reddy. Appreciate your response. Would you be able to mention the section which you are referring?
Also what is the threshold limit, under how much income can I be exempted from deducting tds on salary?
For salaries upto 5lacs per employee there won't be tax due to rebate.
No my question is, I have a proprietorship firm with annual Turnover of INR 60 Lakhs with 10 employees having average salary of INR 7,00,000 Per employee per Year. Is it mandatory to deduct TDS while paying salary as we donot come under Tax Audit.
How much is the salary after deductions ?
There are no deductions, 7,00,000 Gross
I mean taxable salary .
700000/-
Minus : Standard deduction, 80C , HRA etc
700000/-
Minus : Standard deduction, 80C , HRA etc
Can we connect over email to discuss further?
If the employees taxable salary after section 10 exemptions and Chapter VI deductions is below 5lacs then Tds deduction is not required.
Else obtain the TAN , deduct Tds on salary and pay it before deadline
Else obtain the TAN , deduct Tds on salary and pay it before deadline
Ok. Thanks.
I was under the impression that TDS deduction is not required on Salary since the firm is not liable for tax audit.
Generally it is Employer responsibility to deduct and pay tds on salary to avoid compliance burden on employees..
Thanks for the clarification but is it mandatory because some references say it is not due to not eligible for tax audit.
Yeah..It's valid point .. Discuss with your employees and close it
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