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TDS on salary

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Kumar Gaurav

Going...to be C.A soon...

1055 Points Posted on 28 January 2009

Hi,,,,,

If a employee (MALE) joins our company in may-08. And we provide the following salary.

Basic-16000 p.m

HRA- 4500 p.m

Trpt. allowance-800 p.m

spc. allowance- 4500 pm

Means total salary will be given 25,800/- p.m

If company want to deduct TDS on salary when the liablity of company will arise.

In the month of june 08 or july 08 & subsequent or after crossing the 150000/- limit?????

Please help me??????????????

Replies (4)

Shudhanshu Agrawal

Business

2575 Points Posted on 28 January 2009

In such case TDS willbe deducted from June onwards....and u will prepare IT computation of the employee on the provisional basis and assuming that employee will work upto March31,09

Abhinav Agarwal

M.Com C.A SAP Consultant

560 Points Posted on 28 January 2009

Hi.. in this case you need to calculate his salary notionally for the whole year i.e May to MAr'09. Treating this 11 months salary as his total income(Provided he was not working with any other concern earlier and doesn't have any other income). If any tax liability

Abhinav Agarwal

M.Com C.A SAP Consultant

560 Points Posted on 28 January 2009

---Missed out some text---

If any tax liability arise, apportion over 11 months and deduct it from monthly salary. One thing you need to remember. You must ask for Investment declaration under chapter VI of IT Act.

Regards