Is this compulsary for Employer to deduct TDS on salary income every month
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Is this compulsary for Employer to deduct TDS on salary income every month

ashok_modi1978 Started The Discussion:

Hi..........to all

I am working in a public limited company. Every year at the begining of financial year when I send employees form for Income tax declaration, many employees tell that why they have to pay income tax every month? They will pay tax at a time at the end of the financial year.

Please send me rule relating to compulsary deduction of tax from salary income .

:-D

Madhu.T.K - Member Since: Sep 2007
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.

Regards,

Madhu.T.K

S.Chandrasekar - Member Since: Dec 2007
As per IT rule, an employer should deduct on salaries every month, remit it and file it quarterly. Some big companies seem to deviate from this and deduct totally at the year end from Jan to Mar. This was the case a year ago.

Now filling the e-filing acknowledgement Nos for Q1/Q2/Q3/Q4 in Form-16/16A is mandatory. With compulsory mention of these nos, they cannot dodge hereafter. If they do so, late filing penalty will be levied.

Regards,
Chandru

sarmakpk - Member Since: May 2008
Sir,
Please give the details: how to deducted the IT from employee salarys and these deducted amount how to returns file process in income tax office.

Please do needful

regards

Quote:
Originally Posted by S.Chandrasekar View Post
As per IT rule, an employer should deduct on salaries every month, remit it and file it quarterly. Some big companies seem to deviate from this and deduct totally at the year end from Jan to Mar. This was the case a year ago.

Now filling the e-filing acknowledgement Nos for Q1/Q2/Q3/Q4 in Form-16/16A is mandatory. With compulsory mention of these nos, they cannot dodge hereafter. If they do so, late filing penalty will be levied.

Regards,
Chandru

S.Chandrasekar - Member Since: Dec 2007
Dear Sarma,

Your Finance department will take care of the challan remittance and filing of returns. So you need not not worry. But being in the HR, you might have to learn the tax computation in detail. In this forum, it cannot be taught in full length. Take the help of your colleague in Finance dept.

Regards,
Chandru

sarmakpk - Member Since: May 2008
Sir, thanks for reply. when i payroll process i should know the tax calculation and i should posting the tds deduction for every employee. Sothat i wish to know the tds calcuation

balveer2010 - Member Since: May 2011
Sir, I want to know if any employee joins the company in middle of the year than is it required to add his income from last company to calculate his tax..

richarishabh - Member Since: Jun 2011
Dear Balveer,

If the employee who joins in middle of the year files tax annually then you need his previous salary data, and if he had paid his taxes each month in the previous company, you need not do it.

Well I have my question too. I do not have any finance department and I manage 40 employees. now that there is a need for some of them to pay taxes, I have to gather data regarding how do I go about this......exactly the way some sarmakpk has asked.... I have to do all of it myself. I wish to know what are my responsibilities in this regard and what the employees have to do on their own. I have no seniors, no HR manager, I have surfed the net, and am still surfing, have brought a book of Taxation that I had already read and loved at the time of my graduation. I know how to calculate income tax on given salary, but because I have no experience on taxation I do not know exactly where to start. I'll definitely get the required data from the net and the books I have, but I'm putting up my question here so that I can get help of some one who is experienced (a manager, who could manage me on this). Knowledge from books and everywhere else can not do what a mentor or teacher does, I don't have any and am looking for one here.

Thank you to whoever is going to help.

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