Struggling with TDS Calculation Letters for Employee Savings? Need Advice on Format Choices

Dear Citehr's Followers, I am working in an IT company as a Sr. HR. Here, we want to issue a formatted letter to employees for their savings plans, if they have already paid. We want to calculate their total TDS amount till now and determine how much more they should pay in the remaining two months (Feb. & March 2011).

Exemptions and Letter Format

I have the details of exemptions, but I am unable to decide whether the letter should be an undertaking or undersigned. I am attaching the letter to this post. Please help me with further evaluations.

Looking forward to the kind replies.

Thanks,
Kitty

Dear Friend,
This is the Employee IT declaration form, and it will be issued at the beginning of the financial year to all employees to calculate their tax liability. Based on their declarations, tax has to be deducted from salary. Tax should be deducted monthly, which is the total tax liability divided by 12 months. The company should not keep employees' tax dues until the last month according to Income Tax norms.

In your case, you have to circulate this form to all employees who are in the tax purview, ask them to fill it out, and take their signatures on these forms. Then start calculating their total income and tax liability with consideration of savings mentioned in the declaration forms and deduct tax accordingly in the February and March payouts. The important thing is you need to collect all physical tax documents (LIC, PPF, Rent Receipts, Mutual Funds, Housing Loans documents, Mediclaim policy, etc.) duly signed by employees.

I wish you all the best.
Regards

Please find attached the Income Tax sheet for computing your employees' tax liability. I hope this will be sufficient for your needs.

I wish you all the best.

Regards

Please find attached the Income Tax Declaration format that we collect from employees at the beginning of the financial year. Based on this, we calculate the tax liability, verify it, and collect the proofs for the same in January every year for the current financial year.

After verification, we don't allow any fresh investments but consider their existing investments, such as insurance premiums, which fall in February and March.

I hope this will help you manage the tax workings in your company.

Regards.

Could anyone please provide the TDS calculation format that would be helpful for my HR career? Thank you.