TdS on Salary

TDS / TCS 1469 views 2 replies

Vinesh Garg

31 Points Posted on 10 May 2007

Hi! All,

As you know call center indusrty is suffering from high attrition rates and that poses a problem for us. We take a Tax declaration for savings to be made by a person at the time of joining and calculate tax accordingly. At the time of their leaving the company, they are asked to submit their tax saving papers. But they reply that we will invest in Feb, march etc. and they don`t submit the papers. So now the question arises:

Whether the final TDS should be calculated after considering their Declaration or should we ignore it due to non submission of papers?

Replies (2)

Centre

16 Points Posted on 10 May 2007

no
you can not wait till feb.S.192 &CBDT circulars require tax to be deducted on equal amounts every month on estimated basis.

Manish

34 Points Posted on 10 May 2007

Hi,

Refer Circular no. 9/2005 regarding method of Tax Calculation which states that every person responsible for paying any Salary shall deduct income-tax on the estimated income of the assessee for the financial year 2005-2006. The income-tax is required to be deducted on average at the time of each payment. No tax will, however, be required to be deducted unless the estimated salary income including the value of perquisites, for the financial year exceeds Rs.1,00,000/- or Rs.1,35,000/- or Rs.1,85,000/-, as the case may be, depending upon the age and gender of the employee.
Hence u can't escape your obligations and no wait till feb.,/ mar. if employee does not furnish any declaration, then also u have to dedcut tax without giving effect to investments etc.
Hope above fairly clarify ur doubts.