Tds on salary

Dear all,

One of my client's staff received the following salary for the year 2011-12 (Apr11-Mar12)

Salary Rs.22000 per month, so total comes to Rs.264000

Incentive paid for the year Rs.120000/-

So total Salary + Incentive = Rs.384000/-

They have not deducted any TDS for that person.

Is TDS deductible for the above mentioned Salary...

Kindly help me out...

Thanks in advance,

Sundaram

Replies (2)

Yes as the salary exceeds the exemption limit not chargeable to tax so TDS is requried to be made.  But as the employer has not made TDS the asessee will be requried to pay whole of the tax by way of self-asst alongwith interest u/s 234B & C.

However if the assessee would show the investments upto Rs 1lacs(with proofs) & also if he has taking a housing loan and paying EMI the interest on the loan should also be Rs 104000(with certificate).  In that way 2 lacs would get reduced from the taxable income & the same would now fall on the exemption limit. 

Yes, TDS must be deducted by employer under section 192 on the estimated total income of the employee.

Employer may be penalised for not deducting of TDS under section 271C up to amount equal to tax not deducted or paid.

 

Regards

CA Sunny Aggarwal

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