TDS on Salary

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Dear Members

If a assessee is paying interest on Loan after deducting tax & also paying salary to him below taxable limit. Should he lible to deduct TDS on salary as the total income is going higher than taxable limit?

Thanks in advance...

Replies (8)

Your question is not clear assess is paying int. on loan after deduction tds & also paying salary to him... if assess is employee how can he deduct tds on int... after crossing exemption limit company is liable to deduct tds..

Sir assessee has an unsecured loan form the same person also..

Company needs to consider the Interest paid to Assessee, while calculating his Gross Taxable Income. So, TDS amount would be calculated on the basis of Salary Income as well as Interest on Loan.

Does company need to consider tds on interest also while calculating tds on salary?

Yes.

Of course Tax already deducted by Company should be taken into account.

sir how to calculate tds on salary then reduce salary.

Originally posted by : Sunil Ahir

Company needs to consider the Interest paid to Assessee, while calculating his Gross Taxable Income. So, TDS amount would be calculated on the basis of Salary Income as well as Interest on Loan.

Agreed

TDS should be deducted only after considering the Interest Income.  As u know, Other Income can be taken while calculating the Income Tax for the Assessee.   As the payer in both case is a single person.

Considering this Interest income is also beneficial for assessee. 

See, His Salary Income is less then taxable limit.  and TDS on Interest income  will be deducted at 10%.

Now for clearification,

Let his salary is 1,40,000 and Interest income is 1,00,000 so his TDS on Interest is 10,000.

Now his total taxable income is 2,40,000 and tax on it is (2,40,000 -1,60,000) X 10% is 8,000 only.


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