Industrial Relations And Labour Laws
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Thread Started by #ashok_modi1978 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 .
2nd June 2009 From India, Bangalore
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.
6th June 2009 From India, Kannur
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.
6th June 2009 From India, Madras
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

18th September 2009 From India, Hyderabad
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.
19th September 2009 From India, Madras
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
23rd September 2009 From India, Hyderabad
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..
30th November 2012 From India, Delhi
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.
27th February 2013 From India, Pune
Dear Chandu & Madhu,
How far its mandatory that we have to deduct the TDS for an employee month on month. As per i know, i agree that Income Tax should be calculated on the salary expecting that the employee will be there from Apr-Mar & the same tax thing will get bifurcated for 12 months. As an employer we see to that there should not be any liability pending of that particular employee by march 31st. We can deduct all the tax in a single month or alternative months or any time in the financial year which is purely flexible for employee to choose based on his earning capacity & Money management. As to make ourself out of this headache we wantedly push the employee to bear the burden and put the name as non-compliance.
Please rectify me if am wrong and your comments on the same. As this is to give a hope to emloyees not lenience that we are deduting excess tax and we are asking them to get refund it from Income Tax department which is a very big process.
30th May 2015 From India, Hyderabad
Mr Raj,

To answer your query:

If your employee has a net taxable more than Rs250000 in the F/Y,TDS mechanism kicks in.

It is the duty and responsibility of the payer to deduct tax at source. If the payer fails to deduct tax at source, then the payee will not have to face any adverse consequences. However, in such a case, the payee will have to discharge his tax liability. Thus, failure of the payer to deduct tax at source will not relieve the payee from payment of tax on his income. ​

​What are the duties of the person deducting tax at source?

Following are the basic duties of the person who is liable to deduct tax at source.

• He shall obtain Tax Deduction Account Number and quote the same in all the documents pertaining to TDS.

• He shall deduct the tax at source at the applicable rate.

• He shall pay the tax deducted by him at source to the credit of the Government (by the due date specified in this regard*).

• He shall file the periodic TDS statements, i.e., TDS return (by the due date specified in this regard*).

• He shall issue the TDS certificate to the payee in respect of tax deducted by him.

Every company gives the employee an estimated income statement and also monthly TDS deductions,It is upto employee to declare proof of savings to avoid tax.

To my knowledge there is no such flexibility for employee to decide which month and how much tax to be deducted.

Employees need to be told-plan your taxes,savings and no point railing at the TDS system or company,since they are duty bound to follow guidelines of Government on the issue.
30th May 2015 From India, Pune
Dear Friends,
We need to deduct tax for our newly joined employees in our concern. They joined in middle of financial year, but they don't have the previous concern tds documents. So, they are requesting to calculate the tds from their DOJ. There is any possibilities on that process or we could collect any letter from them for tds deduction from DOJ. If you had any format for the letter means kindly share it.
Thanks in advance.
14th March 2017 From India, Chennai
You can collect a declaration of total earnings and TDS at previous employment and also a declaration that they need to effect TDS on the entire earnings from their present salary. Normally whenever a new person joins we should collect a declaration of his previous income and tax deducted thereon so that the Finance people can decide on their tax liability for the remianing period and do the deduction accordingly.
15th March 2017 From India, Kannur
If we calculate tax only for the current employment neglecting the previous employment, then the tax calculation will be an error.
For eg., if his previous employment taxable income is Rs. 2,00,000 and his taxable income for the current employment is Rs. 4,00,000. Then, TDS with previous employment is Rs. 45,000. and TDS without previous employment is Rs. 15,000.
So, better ask him/her to give the previous employment tax computation sheet or ask him the declaration.
15th March 2017 From India, Chennai
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