1)Is the signed declaration taken at the start of the year as well. (as it may be an estimate only)?
2)What if a company doesnot have any signed declaration document from employees even till the close of the financial year?
27th March 2014 From India, Calcutta
Reputed companies have implemented the self service system in their intranet and the employees fill the relevant proposals online. They don't collect hard copies, some collect hard copies. Any how, the particular employee failed to produce the proofs at the time prescribed say Jan end, the entire tax liabilities are deducted in their last 3 months salary proportionately. It may be noted that the TDS deduction is the responsibility of the employer as well as collecting investment proofs.
27th March 2014 From India, Lucknow
In our company we do take the declaration from employee at the start of Financial year and based on that we do initial calculation and start deducting income tax from start of April or May salary.
In January every year we collect the actual proofs from employee against his declaration if they fail to produce that then we add that amount in their income and collect extra Tax in rest 3 Months.
I Have also attached format for your reference.
Let me know if you need any details.
28th March 2014 From India, Pune