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Tds on salary

17 July 2014

Dear Members,

Since the budget has came on 10th july 2014 and the exemption limit below 60 yrs has been extended to Rs. 250000/-.But while calculating TDS on salary for the month of april may and june we have calculated it on the basis of Rs. 200000/- exemption limit.Please clarify whther we should again calculate it from april onwards or we should calculate it from july onwards on the basis of Rs. 250000/- limit.

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8 Replies

CA Pooja Agarwal (Chartered Accountant) (3228 Points)
Replied 17 July 2014

you should again calculate april onwards and divide the (total tax - tds already deducted) by remaining period, say 9 Months in your case

1 Like

Ca final student (student) (139 Points)
Replied 17 July 2014

@ Pooja

Thank you so much for the reply.

Mouli (Articleship) (55 Points)
Replied 17 July 2014

Caluclate the Tax fro full year by taking basic exemption limit as 250000/-, and then deduct the tax u had alredy deduted in apr,may & jun months. For getting the tax to be deducted from July divide remaining tax by remaining period

1 Like

CA.Vinita Gupta (Deputy Manager- Finance) (2923 Points)
Replied 17 July 2014

Agreed with the reply of Pooja. Consider 2.5lac as exemption limit and calculate tds

1 Like

bosubabuv (SR.OFFICER (F&A)) (23 Points)
Replied 18 July 2014

Dear Sir,

Inforamtion required for Non Avilability of PAN card for Salaried Employee and His Annual Salary is Rs.360000/- in FY2013-14

How Much Percentage is applicable If PAN Card Not avilable.
How can we provide the Form 16 if We deducted 20% on Gross salary.

Thanking You,

BOSE BABU.V

V Prabhakara Rao (Assistant Manager) (106 Points)
Replied 18 July 2014

Dear Mr. Bosubabu,

As per Section 206AA basic exemptioin of Rs. 2 Lakh is not applied to those employees who do not have PAN. Hence TDS should be deducted @ 20% on gross amount allowing the Rebate of Rs. 2000/- under Section 87A.

As the TRACES Certificate cannot be generated without PAN, manual Form 16 may be issued.

Afterwards ask the employee to apply for PAN and file the revised ETDS return once the PAN got alloted to him with his PAN details, so that TRACES Form 16 can be generated and employee can file the IT return for refund.

Regards,

Prabhu

1 Like

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

Yes' Tds on salary calucation again calculation onward from month of April to form basic examption limit have 2.50 lac. minus you have paid tax remaining nine months taxable.

Thanks

2 Like

VAMSI ASSOCIATES/S.PHANI RAJ (Advocate & Tax Consultant) (499 Points)
Replied 19 July 2014

Originally posted by : v prabhakara rao
	Dear Mr. Bosubabu, As per Section 206AA basic exemptioin of Rs. 2 Lakh is not applied to those employees who do not have PAN. Hence TDS should be deducted @ 20% on gross amount allowing the Rebate of Rs. 2000/- under Section 87A. As the TRACES Certificate cannot be generated without PAN, manual Form 16 may be issued. Afterwards ask the employee to apply for PAN and file the revised ETDS return once the PAN got alloted to him with his PAN details, so that TRACES Form 16 can be generated and employee can file the IT return for refund. Regards, Prabhu