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 2 lac, 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.
From India, Mumbai
Acknowledge(0)
Amend(0)
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.
From India, Mumbai
Acknowledge(0)Amend(0)
Mr. X's income for FY 2012-13 was Rs. 2,20,000. After deducting an investment of Rs. 21,000, the net income of Mr. X is Rs. 1,99,000/-. In this case, he need not pay any amount on account of income tax.
Steps Taken by the Company
The company may issue a Salary Certificate to Mr. X instead of Form 16. The Accountant does not need to take any action regarding income tax. Mr. X may file a NIL income tax return using the Salary Certificate as proof of income.
Thanks and Regards,
Lokesh
Bhopal
From India, Bhopal
Acknowledge(1)Amend(0)
2Steps Taken by the Company
The company may issue a Salary Certificate to Mr. X instead of Form 16. The Accountant does not need to take any action regarding income tax. Mr. X may file a NIL income tax return using the Salary Certificate as proof of income.
Thanks and Regards,
Lokesh
Bhopal
From India, Bhopal
Acknowledge(1)Amend(0)
Hi Lokesh, First of all, thank you for the simple and prompt reply. I really appreciate it.
Now, can you tell me: 1. What details should be included in the Salary Certificate? 2. Is it Form 16, 16C, or 16A? 3. Suppose the salary is Rs. 2,20,000 with no investment, and the company has deducted TDS for Rs. 20,000. Does the company still give out a 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 2 lakh bar. We know that TDS was deducted, but no documents were given to us.
Thanks and Regards, Megha
From India, Mumbai
Acknowledge(0)Amend(0)
Now, can you tell me: 1. What details should be included in the Salary Certificate? 2. Is it Form 16, 16C, or 16A? 3. Suppose the salary is Rs. 2,20,000 with no investment, and the company has deducted TDS for Rs. 20,000. Does the company still give out a 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 2 lakh bar. We know that TDS was deducted, but no documents were given to us.
Thanks and Regards, Megha
From India, Mumbai
Acknowledge(0)Amend(0)
First of all, thank you for the simple and prompt reply. I really appreciate it. Now, can you tell me:
1. What details should be included in the Salary Certificate?
2. Is it Form 16, 16C, or 16A?
3. Suppose the salary is Rs. 2,20,000 with no investment. The company has deducted Rs. 20,000 for TDS. Does the company still give out a Salary Certificate and/or Form 16?
I am asking because the company I work for has not provided anything to employees who have crossed the 2 lakh bar. We are aware that TDS was deducted, but no documents were given to us.
You need to provide gross salary, investment made by the employee, and taxable salary in the salary certificate. Proof of investment should be kept as a record for future assessment by the TDS authority. You can also use Form 16, disclosing nil TDS.
If the company deducts TDS, they are required to issue Form 16. Please also check whether the same amount is being reflected in Form 26AS on the IT site.
Thanks and Regards,
Lokesh
From India, Mumbai
Acknowledge(1)Amend(0)
1. What details should be included in the Salary Certificate?
2. Is it Form 16, 16C, or 16A?
3. Suppose the salary is Rs. 2,20,000 with no investment. The company has deducted Rs. 20,000 for TDS. Does the company still give out a Salary Certificate and/or Form 16?
I am asking because the company I work for has not provided anything to employees who have crossed the 2 lakh bar. We are aware that TDS was deducted, but no documents were given to us.
You need to provide gross salary, investment made by the employee, and taxable salary in the salary certificate. Proof of investment should be kept as a record for future assessment by the TDS authority. You can also use Form 16, disclosing nil TDS.
If the company deducts TDS, they are required to issue Form 16. Please also check whether the same amount is being reflected in Form 26AS on the IT site.
Thanks and Regards,
Lokesh
From India, Mumbai
Acknowledge(1)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Income Tax Calculations..x ls
SALARY CALCULATOR & INCOME TAX.zip