Tds on salary :urgent

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vinayak c. chavan

CPT passed

361 Points Posted on 26 April 2014

We are private limited company. one of our employee salary for year is Rs.320000/- and he his having lic policy and bank loan against him. So should we consider lic & loan deduction while calculating TDS on his salary or should we deduct tds on salary as attached file? Please suggest. If we have to avail loan deduction what should be the limit in case of individual male

Attached File : 375917 1311551 income tax computation.xlsx downloaded: 303 times

Replies (5)

Anoop N S

Finance Manager

72 Points Posted on 26 April 2014

yes you should cosider lic but bank loan interest paid on housing loan should be considered .

Sahil Arora

Accountant

46 Points Posted on 26 April 2014

Yes. You should consider both if employee is providing you the documentary proofs for the same. The limit will be Rs. 1,50,000/- (Maximum) against Housing Loan Intt U/s 24.

PS :- Interest will be deducted u/s 24(Maximum 1,50,000/-) but the principal amount will be deducted u/s 80C (Maximum 1,00,000/-)

Hope it helps.

CA SUKSHAM ARORA

459 Points Posted on 26 April 2014

yes, you should consider them & should also provide rebate of rs. 2000 in case a.y. 2014-15 before deduction tds as gti is less than 500000

vinayak c. chavan

CPT passed

361 Points Posted on 26 April 2014

That means I should consider Rs.60000 as principal and Rs.10000 as lic and rs.10000 as interest on loan while taking deductions from salary. can i claim pricipal amt deuction apart from 80 C decution amount of rs.1 lac or it is included in 80 C deduction.

Originally posted by : Sahil Arora

Yes. You should consider both if employee is providing you the documentary proofs for the same. The limit will be Rs. 1,50,000/- (Maximum) against Housing Loan Intt U/s 24.

PS :- Interest will be deducted u/s 24(Maximum 1,50,000/-) but the principal amount will be deducted u/s 80C (Maximum 1,00,000/-)

Hope it helps.

Sahil Arora

Accountant

46 Points Posted on 26 April 2014

Originally posted by : vinayak c. chavan
	That means I should consider Rs.60000 as principal and Rs.10000 as lic and rs.10000 as interest on loan while taking deductions from salary. can i claim pricipal amt deuction apart from 80 C decution amount of rs.1 lac or it is included in 80 C deduction.

It is included in 80C as Repayment of Housing Loan.