Hi Professionals,
I am Feeba, and I am newly appointed in an IT company where they are not deducting tax from their employees. My Managing Director asked me to pay tax, deduct the tax from all employees, and provide Form 16 to the eligible employees.
Please help me understand how I should calculate the tax, what documents I should ask my employees to produce, where to submit the tax, how many times I can pay, and how I should deduct it from their salary. The salary ranges from 5000 to 25000 per month in my company.
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From India, Hyderabad
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10I am Feeba, and I am newly appointed in an IT company where they are not deducting tax from their employees. My Managing Director asked me to pay tax, deduct the tax from all employees, and provide Form 16 to the eligible employees.
Please help me understand how I should calculate the tax, what documents I should ask my employees to produce, where to submit the tax, how many times I can pay, and how I should deduct it from their salary. The salary ranges from 5000 to 25000 per month in my company.
Attribution: http://<i>&lt;link outdated-remo...#ixzz2QbHswI38
From India, Hyderabad
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Hi Feeba,
I believe I have already answered your query regarding TDS. When deducting taxes, there are various components to be considered. First, could you please tell me which city you are in? Do you have any PF benefits, and if so, what is the contribution?
If you plan the salary structure wisely, I am sure that up to a total salary of 23,000/- there won't be any TDS. For amounts above 23,000/-, once again, it depends on the savings and exemptions.
If you need more details, please share your ID with me so that I can send a few attachments.
From India, Bangalore
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I believe I have already answered your query regarding TDS. When deducting taxes, there are various components to be considered. First, could you please tell me which city you are in? Do you have any PF benefits, and if so, what is the contribution?
If you plan the salary structure wisely, I am sure that up to a total salary of 23,000/- there won't be any TDS. For amounts above 23,000/-, once again, it depends on the savings and exemptions.
If you need more details, please share your ID with me so that I can send a few attachments.
From India, Bangalore
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Hi Jeevarathnam,
Thank you for your reply. We are located in Hyderabad. Nowadays, every IT company is asking for Form 16 from new joiners. This requirement is causing issues for our employees who are looking to shift to other companies. We have employees with salaries ranging from 5,000 to 25,000.
I am unsure about how to address this problem. Our final decision is to provide Form 16 for eligible employees. We provide HRA, basic salary, conveyance, medical allowance, and special allowance. Additionally, we deduct professional tax from our employees' salaries. As we have only 17 employees, we do not offer PF benefits.
Please advise me on what steps to take next. Thank you.
From India, Hyderabad
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Thank you for your reply. We are located in Hyderabad. Nowadays, every IT company is asking for Form 16 from new joiners. This requirement is causing issues for our employees who are looking to shift to other companies. We have employees with salaries ranging from 5,000 to 25,000.
I am unsure about how to address this problem. Our final decision is to provide Form 16 for eligible employees. We provide HRA, basic salary, conveyance, medical allowance, and special allowance. Additionally, we deduct professional tax from our employees' salaries. As we have only 17 employees, we do not offer PF benefits.
Please advise me on what steps to take next. Thank you.
From India, Hyderabad
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(Fact Check Failed/Partial)-The user reply contains some inaccuracies. It is important to note that the employer is legally obligated to deduct taxes from employees' salaries. Additionally, the provision of Form 16 is a standard requirement for tax compliance. In the case of PF, if the company has more than 20 employees, it must register for EPF. Therefore, the size of the company does not exempt it from this obligation. In summary, it is crucial to deduct taxes from all employees, provide Form 16, and register for EPF if the employee count exceeds 20.
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Hi Feeba,
Even though the total strength is 17, registration with PF is mandatory. For IT Industry, PF is mandatory for employees above 9. HRA, Medical Allowance, and Conveyance shall be exempted as per the IT exemptions. Any remaining benefits should be treated as income from salaries. If you share your ID, I can provide the IT calculations.
From India, Bangalore
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Even though the total strength is 17, registration with PF is mandatory. For IT Industry, PF is mandatory for employees above 9. HRA, Medical Allowance, and Conveyance shall be exempted as per the IT exemptions. Any remaining benefits should be treated as income from salaries. If you share your ID, I can provide the IT calculations.
From India, Bangalore
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(Fact Check Failed/Partial)-The user reply contains incorrect information regarding PF registration being mandatory for companies with 17 employees. PF registration is mandatory for companies with 20 or more employees as per the latest regulations.
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Hi Jeevarathnam,
Thank you for your reply. I agree with you, but my MD said we need 2 more projects before we can address PF. Is there anything we can do with Form 16 without PF?
My ID: feebakatti@gmail.com
From India, Hyderabad
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Thank you for your reply. I agree with you, but my MD said we need 2 more projects before we can address PF. Is there anything we can do with Form 16 without PF?
My ID: feebakatti@gmail.com
From India, Hyderabad
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(Fact Check Failed/Partial)-The user reply is incorrect. It is essential to provide Form 16 to employees regardless of PF status. PF is a separate requirement. Kindly ensure compliance.
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PF & Form 16 are entirely different. PF is just to consider the savings
From India, Bangalore
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From India, Bangalore
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(Fact Check Failed/Partial)-PF & Form 16 are related to employee benefits and tax deductions, respectively. Both are crucial for compliance and employee financial well-being.
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Hello Feeba I am enclosing one format that can calculate TDS and you can deduct accordingly.
From India, Pune
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From India, Pune
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(Fact Check Failed/Partial)-The user reply lacks necessary details for tax calculation and deduction. You need to consider income tax slabs, exemptions, deductions, and Form 16 requirements.
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Hi Somani,
Thank you for your attachments. One more question: Our company has TAN and PAN numbers.
1. Should I deduct the TDS from employees' salaries every month?
2. Should I submit this Form 16 to my auditor?
3. Is there any tax paid by the employer annually?
Please let me know.
From India, Hyderabad
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Thank you for your attachments. One more question: Our company has TAN and PAN numbers.
1. Should I deduct the TDS from employees' salaries every month?
2. Should I submit this Form 16 to my auditor?
3. Is there any tax paid by the employer annually?
Please let me know.
From India, Hyderabad
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(Fact Check Failed/Partial)-The user reply needs some corrections: 1. TDS should be deducted from employees' salary every month. 2. Form 16 should be provided to eligible employees, not necessarily submitted to the auditor. 3. Employers need to pay TDS annually. Reference: Income Tax Act, 1961 Labour Law Rules and Regulations book
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Hello
Our Company got TAN and PAN Numbers
First of all its good that you are having TAN
1. Should i deduct the TDS from Employees salary every month
Yes for salary you have to deduct TDS on monthly basis. There is Interest and penalty provision so please always take care of payment and filling of return in time.
2. Should i submit this Form 16 to my auditor
No you have to issue form 16 and have to to give to employee whose TDS has been deducted.
3. Is there any Tax paid by the Employer annually
No, it’s on monthly basis.
Thanks and regards
From India, Pune
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Our Company got TAN and PAN Numbers
First of all its good that you are having TAN
1. Should i deduct the TDS from Employees salary every month
Yes for salary you have to deduct TDS on monthly basis. There is Interest and penalty provision so please always take care of payment and filling of return in time.
2. Should i submit this Form 16 to my auditor
No you have to issue form 16 and have to to give to employee whose TDS has been deducted.
3. Is there any Tax paid by the Employer annually
No, it’s on monthly basis.
Thanks and regards
From India, Pune
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(Fact Checked)-The information provided in the user's reply is accurate and aligns with tax deduction requirements. Well done! (1 Acknowledge point)
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Somani sir, good evening. For AY 14-15 in income tax, nothing has changed; the tax slab is the same as AY 13-14. However, I read that a 2000 Rs tax credit is introduced only if the taxpayer falls in the first slab, i.e., 2 to 5 lakh. Please clarify this 2000 Rs credit issue. Thank you.
From India, Madras
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From India, Madras
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(Fact Check Failed/Partial)-The user reply contains inaccuracies. The tax credit of Rs. 2,000 for income falling in the first slab was applicable for AY 13-14. For AY 14-15, there were no changes in the tax slabs or introduction of this credit.
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(Fact Check Failed/Partial)-The user's reply contains incorrect information regarding TDS calculations and thresholds. The details provided are not accurate based on current tax laws and regulations.