Understanding TDS Deductions on Salaries in Manufacturing: Can You Help?

Hi, all, good morning! We are in the manufacturing and forging industry, and from this year, we are planning to deduct TDS on salaries. Can you please advise me about TDS deductions from employees' salaries? I require a brief note about it.

First of all, it is the employer's responsibility to deduct the tax for the applicable employees and remit the same to the Income Tax Department. Anyhow, you have initiated it now. If you want to deduct income tax from the employees, you should first learn how to calculate the tax, understand the exemptions, and gather savings details from the employees. Generally, TDS is calculated by the finance department, and only occasionally do HR professionals calculate tax.

If there is a finance team, it is advisable to seek their help or consult the organization's auditor. If you still want to proceed on your own, you can reach out to me personally.

Regards

Hi,

Please find enclosed the sample employee income tax declaration format for your reference. I hope this may help you. Remember to update if there are any changes in tax slabs.

FORM NO. 12B (Form for furnishing details of Income under section 192(2) for the year ending 31st March, YYYY) also needs to be maintained.

Regards,
Narayan

Monthly Tax Deduction Process

For monthly tax deduction, the initial step is to calculate the tax applicable to employees by generating projected annual income. The total tax applicable to the employee will be divided into monthly installments and deducted from their salary. As this is a statutory deduction, the deducted tax is to be remitted to the Income Tax department. On a quarterly basis, you need to submit Form 24Q, and annually, Form 24 to the Income Tax department.

As you are from the manufacturing sector, make sure that the employee has a PAN number if tax is applicable to that employee. For any further assistance, feel free to call me.

Regards, K Vidyesh

Office Ph: [Phone Number Removed For Privacy Reasons] Mobile: [Phone Number Removed For Privacy Reasons]

Dear Ms. Shalini,

At the beginning of the financial year, we need to get declarations from all the employees on how they are going to invest their taxable component of their salary, and the HR Department deducts a proportionate amount every month from their payroll. At the end of the financial year, their tax proofs are verified, and the amount deducted is adjusted.

Regards,
Deepak Vasudevan
HR Professional

Respected member,

For tax deduction at source, the first employer is to apply for a TAN number for remittance of tax to the Income Tax Department. In the recent past, Form 16 has been modified and is now in a consigned form, coming in an A4 paper for easy printing and distribution. For further details, refer to the Income Tax rules and consult auditors for correctness.

Hi,

Please download the standard format for investment declaration as notified by CBDT. You can access it at http://taxguru.in/income-tax/cbdt-notifies-form-deduction-claim-salary-employees.html.

Hope this information is useful.

Thanks and regards,
jd