Tds on salary considering deductions of employee

TDS 12347 views 8 replies

EMPLOYER IS PAYING 3.95 LACS TO EMPLOYEE WHO IS ELIGIBLE FOR CERTAIN DEDUCTIONS U/S 80C, 80U AND INTEREST ON HOME LOAN. SHOULD EMPLOYER CONSIDER ALL THE DEDUCTIONS OF EMOPLOEE OR HE IS LIABLE TO DEDUCT TDS ? WHAT DECLARATION TO BE RECEIVED FROM EMPLOYEE THAT THE TDS IS NOT APPLICABLE SINCE HE IS ELIGIBLE FOR DEDUCTIONS AND HIS NET INCOME IS NOT TAXABLE. OR EMPLOYER TO DEDUCT TDS CONSIDERING ONLY 2.00 LACS EXEMPTED INCOME ONLY

Replies (8)

Employer should consider the deductions on the basis of declaration of employee while deducting TDS on salary. 

please refer to cicular no. 5 of 2011

Agree with Dileep Surya

The Employer should consider all the deductions on the basis of declaration given by the employee and after considering all deductions if still there is tax liability then only the employer should deduct TDS otherwise not.

Declaration should state the investments already made, and not mere planning to invest. In case the employee fails to make the necessary investments which will increase his/her tax liability, the employer will be responsible in the eyes of AO.

Dear Vijay

All Deduction will consider by the Employer on the basis of declaration given by employee except Donation 80G.

Go through the circular specificaaly dealing with employers responsibility while deducting TDS from Employees.

You should not merely accept the declaration of employees. You should ask for the proofs of investments.

Further 80G deductions are not allowed to be given by employer (Specifically mentioned in the Circular).

80U deduction can be allowed (Only if it falls unde the specified disease and certificate in standard format from GOVT hospital is obtained)

I again recommend you to go through the circular. it will give you more clarity

Regards

employer should cosider all deduction of employee after that if his income exceed exemption limit then only he is liable to deduct tds on that u/s 192 and employee has to provide all detail regarding deduction detail evidence ...

 

An EMployee is required to sybmit proof of investment and deductions claiming because in case of default in deducting TDS, the sword is on EMployers neck not on employee


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