Hi Experts,
I would be joining a company this coming July. I have a few queries on income tax basically TDS.
1) Would the company deduct the income tax from the salary from the very first month? And if so how can one save under various saving schemes and reclaim the income tax deducted?
(Filing for income tax reimbursement from Income Tax dept can be a cumbersome process , so I would like to know how can I reclaim the income tax from the company itself.)
2) Is there a provision wherein one can pledge to the company that he/she would save Rs. X under tax saving scheme?
Thanks
From India, Hyderabad
I would be joining a company this coming July. I have a few queries on income tax basically TDS.
1) Would the company deduct the income tax from the salary from the very first month? And if so how can one save under various saving schemes and reclaim the income tax deducted?
(Filing for income tax reimbursement from Income Tax dept can be a cumbersome process , so I would like to know how can I reclaim the income tax from the company itself.)
2) Is there a provision wherein one can pledge to the company that he/she would save Rs. X under tax saving scheme?
Thanks
From India, Hyderabad
Dear Sreejesh,
You can definitely save your tax.
First you have to go through your salary break up and understand the components. There would be tax saving components like Basic, HRA, Conveyance, Medical reimbursement, LTA etc. According to the components you can plan your tax savings.
Every company asks for investment declarations in the beginning of the year. This is nothing but a pledge from employee that you are going to invest in savings under certain heads during the FY. These investment declarations will be considered and the tax would be calculated. At the end of the year you will be asked to submit the proof for the ITDF that you gave the beginning of the year. Failing to submit those, you will be liable to pay the tax.
Few companies break the tax into 12 and deduct every month, but few like govt organizations deduct in the last 2 months of the FY.
From India, Hyderabad
69You can definitely save your tax.
First you have to go through your salary break up and understand the components. There would be tax saving components like Basic, HRA, Conveyance, Medical reimbursement, LTA etc. According to the components you can plan your tax savings.
Every company asks for investment declarations in the beginning of the year. This is nothing but a pledge from employee that you are going to invest in savings under certain heads during the FY. These investment declarations will be considered and the tax would be calculated. At the end of the year you will be asked to submit the proof for the ITDF that you gave the beginning of the year. Failing to submit those, you will be liable to pay the tax.
Few companies break the tax into 12 and deduct every month, but few like govt organizations deduct in the last 2 months of the FY.
From India, Hyderabad
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Circular No 1-2018 Processing of income-tax returns under section 143(1) of the Income-tax Act .pdf
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