Can we consider the benefit from rebate while computing income of employees for deducting tds on salary ?
Replies (4)
Quick Summary
This discussion clarifies whether the Section 87A rebate should be considered when calculating Tax Deducted at Source (TDS) on employee salaries. The consensus is that the rebate, applicable for annual incomes under £5 lakh, should indeed be factored into the TDS calculation as it forms part of the overall tax liability. This ensures accurate deductions based on an employee's net tax payable.