Hi Friends,
IN our company i have seen our payroll guys deduting tax in advance.
for eg.
one of our employee joined in june,06 and payroll guys had deducted the full year tax from his first month salary.
here i just want to know do we have any policies as per govt. guidlines that when and how the tax will be deducted because if payroll deduct my salary in advance and in future definatly i will show my savings then what wil happen.
waiting for kind reply.

From India, New Delhi

I think we all are confused in this question...?? but we have to find out the answer, after all this is the question of employee grievances... Waiting....???
From India, New Delhi
hi Rupendra
As to my knowledge.TDS is deducted for a person who is working through out the year, say in one organisation or in several organisations.
When a employee joins in a organisation,with all the other documents, he will have to submit even the deducted amount of Tax he paid in the previous organisation, I think the person u were talking about did not pay the Tax in his previous organisation even though he comes under tax preview. ,or did not give information for ur Pay- roll people. Just clarify this &u might get ur answer.
Hope u get ur answer.

From India, Hyderabad
I advise the following:
The employee has to calculate his potential earning for the year ie June'06 to Mar'06 and add it to the earning of April 06 to June' 06. While doing this, he has consider income from Salaries and other sources as well. based on this he has to calcultae the Taxable Income. Thereafter consider the Investment and proposed investment to calculate Tax payable.(May be an undertaking is required by the employee). Divide th sum by no. of months left and ask the Payroll to deduct on monthly basis. lack of information may be the reason for such ad hoc deduction.

I think in the month of april payroll guy will ask for the declaration like what investment we are planning to do according to that their will deduct the tax at year end.
I hope i am right.

From India, Hyderabad
Hi All,
I am agree with all of you.
but what i feel is we have to give atleast 1 month time to every new joinee that please declare their declaration, but we are not suppose to deduct employees first salary.
what do you say.

From India, New Delhi
Hi All:
No need to pay the TDS amount in advance. pay it for the current month. We should collect Saving declaration from the employees (His saving options as well as HRA, medical etc etc) and according that we need to calculate the tax for that year. Please note that employees can submit these saving details till Jan 15th of next year.

From India, Hyderabad

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