Tds then salary
Ekta99 (Student) (34 Points)
17 March 2016
when to deduct TDS on salary??
is there any limit??
Durgesh Vashisth
(Financial Consultant)
(252 Points)
Replied 17 March 2016
TDS deducted on salary, when the salary is exceeding the exemption limit.
summer
(Article )
(50 Points)
Replied 18 March 2016
Who makes the TDS for an employee? An employer or the company i.e source of salary income for the employee.
When is TDS deducted? When the employer makes payment of salary to his employee. Which means only net salary (salary without TDS) is credited to the employee's account.
How much to deduct? The income tax slab rates and relevant percentage is used for deducting tds.
In many cases, the entire salary is credited to the employee's account. In this case, the tds is not deducted and the employee while filing return will pay his tax liability in the head of Income from salary.
Punith
(Article assistant)
(107 Points)
Replied 18 March 2016
Hi Ekta,
TDS on salary should be deducted when the salary of employee exceeds basic exemption limit after considering chapter VI A deduction.In case TDS is not deducted by employer entire expense relating to employee expense will be disallowed and increase tax liability.
Ekta99
(Student)
(34 Points)
Replied 18 March 2016
NEERAJ SHARMA
(CA IPCC )
(113 Points)
Replied 18 March 2016
what you think it doesn't matter, but yes, TDS should be deducted when salary due or payment, whichever is earlier.
and TDS should be deducted only if Employee get gross salary over basic exemption limit as per Income tax act.
Krishna
(student)
(654 Points)
Replied 19 March 2016
sachin
(CA Practice )
(34 Points)
Replied 19 March 2016
Tax Deduction at Source is one of the primary obligations of the employer. Therefore, from the monthly salary of every employee who is expected to cross the required income exempted from income tax TDS should be deducted. The amount of tax deducted shall invariably be depended on the availability of proof of tax savings investments submitted by each employee. Therefore, for each financial year you may collect declaration from the employees of their tax saving investments and proof thereof.
devaki nandan
(Accountant)
(57 Points)
Replied 19 March 2016
Dear Ekta
1st of all, decide the salary structure like Basic, TA, Medical, HRA etc. & get details of the Other Income of the employee & declaration for Investment. Than check the Taxable Salary and applicable TDS on that.
Divide the Tax (TDS) in equal instalment and deduct from salary payable.
Collect all the required Investment Proof, Rent Receipts, Medical Bills etc before 15th March. If there is any shortfall in TDS deducted, deduct the same from March Salary.
Regds
CAclubindia
