Master in Accounts & high court Advocate
9615 Points
Posted on 06 December 2024
As an employer, you are required to consider all eligible deductions under Chapter VI-A of the Income-tax Act, 1961, while calculating TDS on salary.
566 Deductions under Chapter VI-A Chapter VI-A includes deductions under Sections 80C to 80U, such as:
1. _Section 80C_: Deductions for life insurance premium, PPF, NSC, etc.
2. _Section 80D_: Deductions for medical insurance premium.
3. _Section 80E_: Deductions for interest on education loan.
4. _Section 80G_: Deductions for donations to charitable institutions.
5. _Section 80U_: Deductions for disability. Exemptions and Exceptions While calculating TDS on salary, you are not required to consider the following:
1. _Section 80G_: Donations to charitable institutions. Employees can claim this deduction directly while filing their income tax return.
2. _Section 80GG_: Deductions for rent paid. Employees can claim this deduction directly while filing their income tax return. Employee Declaration and Evidence Employees should submit declarations and evidence for deductions under Sections 80C to 80U, except for Sections 80G and 80GG. Employer's Responsibility As an employer, you should:
1. Obtain declarations and evidence from employees for eligible deductions.
2. Consider these deductions while calculating TDS on salary.
3. Furnish Form 16 to employees, including details of deductions considered. Consult a