Dear Citehr's Followers,I am working in an IT company as a Sr. HR.Here, we want to issue a format letter to employees for their saving plans, if they have and which is already paid. We want to calculate their whole TDS amount till now and looking forward how much they should have to pay more in balance two months (Feb. & March-2011).Now, i have exemptions details.. But not able to understand whether the letter should be the undertaking or undersigned.I am attaching that letter in my post.Please help me for further evaluations.Looking forward for the kind replies.
Thanks kitty
From India, New Delhi
Thanks kitty
From India, New Delhi
Dear Friend,
This is Employees IT declaration form and this will be issuing at begging of financial year to all employees to calculate their tax liability. Based on their declarations tax has to be deduct from salary. Tax should be deducted monthly that is total tax liability divided by 12 months. Company should not keep employee’s tax dues until last months according to Income tax norms.
In your case you have to circulate this form to all employees who are in tax purview ask them to fill it and take their signatures on these forms. Then Start calculating their total income and tax liability with consideration of savings which are mentioned in declaration forms and deduct tax accordingly in Feb and Mar payouts. Important thing is you need to collect all physical tax documents ( LIC, PPF, Rent Receipts, Mutual Funds, Housing Loans documents, Mediclaim policy etc..) duly signed by employees.
I wish you all the best.
From India, Hyderabad
85This is Employees IT declaration form and this will be issuing at begging of financial year to all employees to calculate their tax liability. Based on their declarations tax has to be deduct from salary. Tax should be deducted monthly that is total tax liability divided by 12 months. Company should not keep employee’s tax dues until last months according to Income tax norms.
In your case you have to circulate this form to all employees who are in tax purview ask them to fill it and take their signatures on these forms. Then Start calculating their total income and tax liability with consideration of savings which are mentioned in declaration forms and deduct tax accordingly in Feb and Mar payouts. Important thing is you need to collect all physical tax documents ( LIC, PPF, Rent Receipts, Mutual Funds, Housing Loans documents, Mediclaim policy etc..) duly signed by employees.
I wish you all the best.
From India, Hyderabad
Dear Friend, Please find attached Income Tax sheet for computing your employees tax liability, I hope this will be sufficient for your need. I wish you all the best.
From India, Hyderabad
From India, Hyderabad
Hi All,
This is in regards with my TDS Deduction, I have joined a Company in October 2010. Hence, this is my fourth month running in this company. I was appointed on Consolidated pay, till now I am getting my salary as consolidated. Now my concern is, In January Salary my TDS has been deducted as 10% on my whole consolidated amount. When I have asked the reason behind this sudden deduction in fourth month, the explanation that I have got is I am working as a consultant in this company. Well if my employee type is consultant here then, whats the point of appointment letter issued to me stating my employment as Executive HR, with certain amount of in hand salary which will be consolidated for few months (Probation Period - which was 3 months as per my appointment letter).
Since I am not even coming in the slab of deduction. But as per the above mentioned IT Calculation, its showing my Professional tax has to be deducted which is coming out to small amount, whereas my company is deduction 10% of my whole consolidated pay.
Now My concern are:
1. If I am a consultant then am I liable to bound with this company policies?
2. What's the point of giving appointment letter to me, if its stand null and void in the case of consultants.
3. what's the point of issuing Form 16, if I am not at all coming in that IT Slab?
4. Can I ask Accounts people, for not deducting the TDS amount? If yes then how can they deduct it on their own will?
5. If I have been promised at the time of my employment that you will be getting certain amount of money in hand and now they are reducing the money and asking me to file a IT Return at the end of financial year and after showing your saving you will get this money back in your account?
Please help me in this situation how to proceed ahead??
From India, Chandigarh
This is in regards with my TDS Deduction, I have joined a Company in October 2010. Hence, this is my fourth month running in this company. I was appointed on Consolidated pay, till now I am getting my salary as consolidated. Now my concern is, In January Salary my TDS has been deducted as 10% on my whole consolidated amount. When I have asked the reason behind this sudden deduction in fourth month, the explanation that I have got is I am working as a consultant in this company. Well if my employee type is consultant here then, whats the point of appointment letter issued to me stating my employment as Executive HR, with certain amount of in hand salary which will be consolidated for few months (Probation Period - which was 3 months as per my appointment letter).
Since I am not even coming in the slab of deduction. But as per the above mentioned IT Calculation, its showing my Professional tax has to be deducted which is coming out to small amount, whereas my company is deduction 10% of my whole consolidated pay.
Now My concern are:
1. If I am a consultant then am I liable to bound with this company policies?
2. What's the point of giving appointment letter to me, if its stand null and void in the case of consultants.
3. what's the point of issuing Form 16, if I am not at all coming in that IT Slab?
4. Can I ask Accounts people, for not deducting the TDS amount? If yes then how can they deduct it on their own will?
5. If I have been promised at the time of my employment that you will be getting certain amount of money in hand and now they are reducing the money and asking me to file a IT Return at the end of financial year and after showing your saving you will get this money back in your account?
Please help me in this situation how to proceed ahead??
From India, Chandigarh
what should i know to get job of HR in IT company ?
Dear Seniors,
Please guide me i want to move to IT currently i m taking care of some HR activities in FMCG company in pune . activities joining formalities , induction , budgeting to small extent now i want to enter IT industry please tell me what all should i read and learn to get into IT . i dont want to get into recruitment doing distance hr from symbiosis .
Neelanjana
From India, Pune
Dear Seniors,
Please guide me i want to move to IT currently i m taking care of some HR activities in FMCG company in pune . activities joining formalities , induction , budgeting to small extent now i want to enter IT industry please tell me what all should i read and learn to get into IT . i dont want to get into recruitment doing distance hr from symbiosis .
Neelanjana
From India, Pune
Dear Friend,
I have read your post. I understand that still you are treating as a consultant. as per appointment letter your extension period is 3 months from the date of appointment, however they might have extended another 3 months of your probation period. Please read thoroughly your appointment order and check whether is their any clause stating if we are not satisfied we may extend your probation period without any prior information.
About your IT deductions, according to Income tax norms under consultancy (194J) head if payment is Rs. 30,000 or above in particular finance year tax to be deducted @ 10% and if paid previously TDS to be deduct TDS on entire previous payments ( previous payments means particular financial year payments) as per norms. In your case they might have paid below Rs. 30 k in first three months. The movement you attain or crossed Rs. 30k they have deducted @ 10% on total payments which is right according to Income Tax norms.
About your concerns I am giving brief answer as per my view.
1) As a consultant you should comply your company polices .Because you might have singed on appointment letter copy. This means you have agreed and you are going to follow the company polices.
2) When company selects a Person and wants to hire him, company has to issue appointment letter. In your case company did the same, here there is no question of null and void.
3) Form 16 is issue only for regular employees not for consultants, in your case you are entitled for Form 16A. I hope they will issue form 16A (tds certificate) since they have deducted tax from your consultancy services.
4) You cannot ask your accounts department people for non deduction of TDS, since they are complying and deducting tax as per IT rules. Note that it is a statutory obligation.
5)May be they might have told you that you will get total amount at that time of appointment. To my knowledge in appointment letter they might have included the clause that taxes are applicable according to statutory norms so read thoroughly your appointment letter. Generally we don’t know about taxes at that time of joining, this is where we fall in to soup so we should be more careful in this kind of situations.
In your case to get refund you have to submit Income Tax Returns .
As a consultant you can claim few of your expenditure like conveyance, Fuel, depreciation of vehicle (if applicable), Telephone charges, Rent etc.These all expenditure can deduct from gross income with result your total Income will reduce. Apart from this you can show your savings like LIC, Mutual funds, P.P.F etc U/S 80C upto Rs. 1,00,000/-. I would suggest you better consult Tax consultant or practicing Chartered Accountant for submission of Income Tax, returns they will guide you in proper way.
I hope you are clear now.
I wish you all the best & God bless you .
From India, Hyderabad
I have read your post. I understand that still you are treating as a consultant. as per appointment letter your extension period is 3 months from the date of appointment, however they might have extended another 3 months of your probation period. Please read thoroughly your appointment order and check whether is their any clause stating if we are not satisfied we may extend your probation period without any prior information.
About your IT deductions, according to Income tax norms under consultancy (194J) head if payment is Rs. 30,000 or above in particular finance year tax to be deducted @ 10% and if paid previously TDS to be deduct TDS on entire previous payments ( previous payments means particular financial year payments) as per norms. In your case they might have paid below Rs. 30 k in first three months. The movement you attain or crossed Rs. 30k they have deducted @ 10% on total payments which is right according to Income Tax norms.
About your concerns I am giving brief answer as per my view.
1) As a consultant you should comply your company polices .Because you might have singed on appointment letter copy. This means you have agreed and you are going to follow the company polices.
2) When company selects a Person and wants to hire him, company has to issue appointment letter. In your case company did the same, here there is no question of null and void.
3) Form 16 is issue only for regular employees not for consultants, in your case you are entitled for Form 16A. I hope they will issue form 16A (tds certificate) since they have deducted tax from your consultancy services.
4) You cannot ask your accounts department people for non deduction of TDS, since they are complying and deducting tax as per IT rules. Note that it is a statutory obligation.
5)May be they might have told you that you will get total amount at that time of appointment. To my knowledge in appointment letter they might have included the clause that taxes are applicable according to statutory norms so read thoroughly your appointment letter. Generally we don’t know about taxes at that time of joining, this is where we fall in to soup so we should be more careful in this kind of situations.
In your case to get refund you have to submit Income Tax Returns .
As a consultant you can claim few of your expenditure like conveyance, Fuel, depreciation of vehicle (if applicable), Telephone charges, Rent etc.These all expenditure can deduct from gross income with result your total Income will reduce. Apart from this you can show your savings like LIC, Mutual funds, P.P.F etc U/S 80C upto Rs. 1,00,000/-. I would suggest you better consult Tax consultant or practicing Chartered Accountant for submission of Income Tax, returns they will guide you in proper way.
I hope you are clear now.
I wish you all the best & God bless you .
From India, Hyderabad
Dear Manya,
Pls find attched the Income tax Declaration format which we take it from employees at the begining of financial year. So depening on this we calculate the Tax libility and verify and collect the proofs for the same in the Month of Jan every year for the current financial year.
After verification we dont allow any fresh investment but consider their existing investment like insurance premium which are falling in Feb & March.
I hope this will help you to manage the TAX working in your compnay.
From India, Pune
Pls find attched the Income tax Declaration format which we take it from employees at the begining of financial year. So depening on this we calculate the Tax libility and verify and collect the proofs for the same in the Month of Jan every year for the current financial year.
After verification we dont allow any fresh investment but consider their existing investment like insurance premium which are falling in Feb & March.
I hope this will help you to manage the TAX working in your compnay.
From India, Pune
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Format--new TDS rates.xls
TDS circular.pdf