If I take a leave from March 3rd to March 31st on loss of pay (LOP)/ leave without pay(LWP), will my tax get deducted for that particular month?
From India, Chennai
From India, Chennai
Hi
Income Tax deductions are based on :
1) Total taxable earnings for the Financial Year
2) IT Regime you had opted for old or new
3) Investments you had made under various sections like 80C, 80D etc.
(No. 3 applicable only if you had opted for old Regime)
The normal process followed by Companies are - they will first calculate the projected earnings for the whole financial year and will check the projected investment declaration after which will arrive at monthly Income Tax to be deducted in EMI's. In case of any loss of pay in the middle of months, there will be some variation in the monthly deduction amount. This is the standard process.
However some Companies follow year end IT deductions for last 3-4 months.
So it all depends on your income tax slab, investments made, Deduction method followed etc.
From India, Madras
919Income Tax deductions are based on :
1) Total taxable earnings for the Financial Year
2) IT Regime you had opted for old or new
3) Investments you had made under various sections like 80C, 80D etc.
(No. 3 applicable only if you had opted for old Regime)
The normal process followed by Companies are - they will first calculate the projected earnings for the whole financial year and will check the projected investment declaration after which will arrive at monthly Income Tax to be deducted in EMI's. In case of any loss of pay in the middle of months, there will be some variation in the monthly deduction amount. This is the standard process.
However some Companies follow year end IT deductions for last 3-4 months.
So it all depends on your income tax slab, investments made, Deduction method followed etc.
From India, Madras
In addition to what Lakshmi Narayan has said, I would like to say that since the LOP is in the last month of the financial year, the employer can decide whether to deduct or not based on the tax deductions made in the preceding months. If your tax liabilities have been covered by means of deductions made in the last 11 months, then the employer will ignore the salary of just two months. At the same time, if the total tax payable is still to be deducted, then the two days salary will be subjected to TDS or even the entire amount (of two days salary) shall be taken as tax.
From India, Kannur
From India, Kannur
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Latest gujarat 6 pay modified.xls
VARIABLE PAY.doc