TDS Query... Pls help

TDS 812 views 5 replies

Hello Friends, If a person is a blind working in a school, to which deduction u/s. 80U is applicable.. As he recieve salary of amount Rs. 10000 per month, and other income and so keeping himself under exemption limit. But, the school (trust) on the other hand deducts TDS from his salary..

So, Can we claim to the management of trust not to deduct TDS, since there's no taxable income?? Pls rply with relavant reason and any ref of judgements, if any..

Replies (5)

AS his salary is below exemption limit, how the trust are deducting tds is not understood. if employees salary is in excess of exemption limit and due to investment it come no tax then he needs to give declaration to employer to not to deduct tds. pls confirm with employer..

first of all trust  cant deduct TDS on salary becoz it is under minimum exemption  limit . but if they are deducting tds assessee can make a make a application to AO for non deduction of tax U/S 197

Be carefull. Many of these schools show a salary as per 5th / 6th pay commission but pay the staff less. They usually take signature for higher amount to comply with Pay Commission requirements. Therefore you check the salary slip on what basis they deduct. Eventually you will have to file return showing the higher income as per what school will show in TDS certificate and claim refund. You should not file return on amount the school actually paid. This is the usual practice of private schools.

It shows some fraud going on on Payrolls...

This fraud is less in the private aided schools but very high in the non aided schools. They just take shelter of these Pay Commissions to hike fees. Some schools take signatures for high amount. Some of them give the cheque and take back cash. They never make the staff permanent. People who are desperate for the jobs comply. Running a school is fantastic business.Donations, Capitation and on top of it all this. While giving the job only they inform the person that he / she has to comply. Therefore you can understand why the teaching standards at the schools are dropping down considerably.


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