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Tds for salary

HIJAS MOHAMED (AUDIOLOGIST) (25 Points)

19 February 2014

I am starting my career as an employee. Is TDS for salary applicable for the first year of my career. This is my first job.

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10 Replies

Arvind Sharma (ACA) (1432 Points)
Replied 19 February 2014

It depends upon the pay you are getting. Salary is liable to TDS if you income (annualised) exceed Rs. 2 lacs. So, if you has joind in March 13 and your taxable salary is Rs. 20000, No TDS is dedductable ofr FY 12-13, but for FY 13-14, annualised salary will be Rs. 2,40,000 and thus TDS will be deducted 10% from monthly salary and you will be paid Rs. 18,000.

In order to avoide TDS, you can minimise tax liability by taking exemptions of various allowancces available for salaried persons and bifurcate salary into various sub-parts. You Eomployer's HR will look about this. Ask them.

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HIJAS MOHAMED (AUDIOLOGIST) (25 Points)
Replied 19 February 2014

I joined in june 2013 and my salary is 336000. I heard like tax will not b levied for the first year of the career. Pls clarify sir.

Ramanuj (Accountant.) (834 Points)
Replied 19 February 2014

Dear hijas

if you have salary received form any employer above 2,00,000/- then not tds is deducted from your salary . now Basic exemption of income tax is 200,000/- & rebate u/s 87A Rs, 2000/-

0-2 lac to

2 lac to 5 lac 10 %

5 lac to 10 lac 20%

Above 10 lac then 30% + 03.% edu sess.

You have get deduction u/s 80 c for 1 lac in any investement.

You have recieved hra & paid rent then deduction is applicable. u/s house propriety.

Suppose

You have get sarary basic salary 4 lac & you have investment 1 lac than your salary is taxable

salary 4 lac

Inv. 1 lac

_____

3 lac