Is My Friend's Salary Deduction for TDS Correct, and Can He Claim It Back? Seeking Advice on the Process

One of my friends (a man) joined a small company, and his current CTC is Rs. 4.8 Lacs (i.e., 40,000). However, after completing one month, he received a salary of Rs. 36,000 as net take-home pay. In that small company, they don't have any PF/HRA, and they deducted 10% as TDS from the salary (i.e., 36K). Is this really the correct process, and can that TDS be claimed or not? Also, could you please let me know the exact procedure for the deduction of TDS?

Waiting for your early response.

Regards,

The company is right in deducting TDS from salary if the projected income (taxable) during the FY 2013-14 is above 2 lakhs. Income, i.e., taxable exceeding 2 lakhs up to 5 lakhs, falls under the slab of 10%.

In your case, if taxable income is 4.8 lakhs, 10% on exceeding 2 lakhs, i.e., 2.8 lakhs, comes to 28,000 annually. Monthly it comes to 2,334. The company should deduct TDS of 2,334 on average per month.

I completely agree with Mr. Keshav. If they are deducting more amount, they will refund it at the end of the financial year.

The said company must have deducted TDS at 10% on the salary paid and must show the individual as a consultant in their company to avoid making payments for PF/ESIC, etc. Your friend can claim the TDS deducted in their income tax return and pay the balance amount of income tax payable. If you need any help with this, please email me, or else, contact me.

The said company must have deducted TDS at 10% on the salary paid and must be shown as a consultant in their company so they can avoid making payments for PF/ESIC, etc. Your friend can claim the TDS deducted in his income tax return and pay the balance amount of income tax payable by him. If you need any help with the same, please email me or contact me.

Yes, I also agree with you. The said company must have deducted TDS at 10% on the salary paid and must be shown as a consultant in their company so they can avoid making payments for PF/ESIC, etc. After the end of the financial year, you should demand your TDS certificate from the said company. You can then show this certificate in your income tax return, and any extra tax deduction will be refunded by the Income Tax department.

Hi team, I recently joined a new firm with a salary of around 4 lakhs CTC. I want to know how much TDS will be deducted and how I can save on my taxes. I received my first salary around 18 days ago, but there were no deductions. I am very worried about my salary in the second month. I have a mediclaim policy, LIC policy, and Birla Sun Life insurance policies. Additionally, both my dad and I are paying home rent, which could help me save on taxes.

Kindly guide me. We are also planning to buy our own home, which will help me save on taxes.

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Regards,
Prashant