Confusion On Income Tax - TDS Calculations For FY 2012-13 - CiteHR
Sb076
Partner & Head Of Tax
Megha3665
Executive - Hr
+1 Other

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Hi,
I have a very simple query. I hope!
Mr. X's income for FY 2012-13 was Rs. 2,20,000. Now, the company that he works for, for some reason, decided to submit the TDS only at the end of the year. At that time, Mr. X submitted documents showing investments of Rs. 21,000.
The Accountant said that since the total effective income became less than 2lac, Mr. X need not pay any tax.
Now, if that is the case, what would be the steps taken by the Company, the Accountant and Mr. X? That is, what documents should all of them submit and what documents does Mr. X get and/or apply to show that he was excused from the tax?
I hope my question is clear.
Thanks and Regards,
Megha,
Vadodara.

Hello Megha,
Mr. X's income for FY 2012-13 was Rs. 2,20,000. Less Investment of Rs.21,000. then Net income of X = 1,99,000/-
In that case he need not pay any amount on account of income tax.
Steps would be taken by the company is that, company may give Salary Certificate to Mr. X instead of Form 16.
The Accountant need not to do anything with income tax.
Mr. X may file NIL income tax return with that proof of salary (Salary Certificate).
Thanks and Regards,
Lokesh
Bhopal

Hi Lokesh,
First of all, thank you for the simple and prompt reply. Really appreciate it.
Now, can you tell me,
1. what details should be included in the Salary Certificate?
2. is it form 16 or 16c or 16 a?
3. Suppose the salary is Rs. 2,20,000 and no investment. The company has deducted to TDS for the Rs.20,000. Does the company still give out Salary Certificate and/or Form 16?
I am asking because the company that I work for has not given anything to the employees who have crossed the 2lac bar. We know that TDS was deducted, but no documents were given to us.
Thanks and Regards,
Megha

Hi Megha
You need to provide gross salary, investment made by the employee and taxable salary in the salary certificate. Proof of investment you need to keep as a record for future assessment by TDS authority.
You can also use Form 16, disclosing nil TDS.
If company deducts TDS, they have to issue Form 16 and please also check whether the same amount is being reflected in 26 AS in the IT site.
Regards

Hi Seniors,
if an employee earning more than a 2lakh per annuam and he is eligible to deduct the TDS from the salary...
to avoid the TDS Deduction What are all the documents he needs to submit..
Please help in this regard

He has to submit his investment details such as PF, LIC, mediclaim etc. Regards
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