Hi..........to all
I am working in a public limited company. Every year at the begining of financial year when I send employees form for Income tax declaration, many employees tell that why they have to pay income tax every month? They will pay tax at a time at the end of the financial year.
Please send me rule relating to compulsary deduction of tax from salary income .
:-D
From India, Bangalore
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3I am working in a public limited company. Every year at the begining of financial year when I send employees form for Income tax declaration, many employees tell that why they have to pay income tax every month? They will pay tax at a time at the end of the financial year.
Please send me rule relating to compulsary deduction of tax from salary income .
:-D
From India, Bangalore
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Tax Deduction at Source is one of the primary obligations of the employer. Therefore, from the monthly salary of every employee who is expected to cross the required income exempted from income tax TDS should be deducted. The amount of tax deducted shall invariably be depended on the availability of proof of tax savings investments submitted by each employee. Therefore, for each financial year you may collect declaration from the employees of their tax saving investments and proof thereof.
Regards,
Madhu.T.K
From India, Kannur
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Regards,
Madhu.T.K
From India, Kannur
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As per IT rule, an employer should deduct on salaries every month, remit it and file it quarterly. Some big companies seem to deviate from this and deduct totally at the year end from Jan to Mar. This was the case a year ago.
Now filling the e-filing acknowledgement Nos for Q1/Q2/Q3/Q4 in Form-16/16A is mandatory. With compulsory mention of these nos, they cannot dodge hereafter. If they do so, late filing penalty will be levied.
Regards,
Chandru
From India, Madras
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Now filling the e-filing acknowledgement Nos for Q1/Q2/Q3/Q4 in Form-16/16A is mandatory. With compulsory mention of these nos, they cannot dodge hereafter. If they do so, late filing penalty will be levied.
Regards,
Chandru
From India, Madras
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(Fact Checked)-The user's reply contains accurate information regarding the mandatory monthly deduction and remittance of income tax by employers, along with the requirement of filing quarterly returns and penalties for non-compliance. (1 Acknowledge point)
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Sir,
Please give the details: how to deducted the IT from employee salarys and these deducted amount how to returns file process in income tax office.
Please do needful
regards
From India, Hyderabad
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Please give the details: how to deducted the IT from employee salarys and these deducted amount how to returns file process in income tax office.
Please do needful
regards
From India, Hyderabad
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(Fact Check Failed/Partial)-The information provided in the user reply is [B]incorrect[/B]. As per Income Tax rules, tax deductions should be made monthly, not just at the year-end. Employers must deduct and remit taxes monthly and file quarterly returns. Filling e-filing acknowledgement numbers in Form-16/16A is mandatory.
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Dear Sarma,
Your Finance department will take care of the challan remittance and filing of returns. So you need not not worry. But being in the HR, you might have to learn the tax computation in detail. In this forum, it cannot be taught in full length. Take the help of your colleague in Finance dept.
Regards,
Chandru
From India, Madras
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Your Finance department will take care of the challan remittance and filing of returns. So you need not not worry. But being in the HR, you might have to learn the tax computation in detail. In this forum, it cannot be taught in full length. Take the help of your colleague in Finance dept.
Regards,
Chandru
From India, Madras
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(Fact Check Failed/Partial)-The user's reply contains inaccurate information. It is essential for employees to have tax deducted monthly as per the Income Tax Act, 1961. Employees cannot opt to pay tax yearly. It is a mandatory deduction. It's advisable to seek guidance on tax laws.
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Sir, thanks for reply. when i payroll process i should know the tax calculation and i should posting the tds deduction for every employee. Sothat i wish to know the tds calcuation
From India, Hyderabad
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From India, Hyderabad
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(Fact Check Failed/Partial)-[The user's reply is incorrect. Employers are required to deduct TDS from employees' salaries every month as per the Income Tax Act, 1961 to ensure timely tax payments. It is crucial for HR to understand tax calculations for accurate deductions and compliance. Reference: Income Tax Act, 1961]
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Sir, I want to know if any employee joins the company in middle of the year than is it required to add his income from last company to calculate his tax..
From India, Delhi
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From India, Delhi
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(Fact Checked)-The tax calculation for a new employee joining in the middle of the year includes only the income earned during the period of employment with the current company. No need to add income from the previous company. (1 Acknowledge point)
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Dear Balveer,
If the employee who joins in the middle of the year files taxes annually, then you need his previous salary data. If he had paid his taxes each month at the previous company, you need not do it.
Well, I have my question too. I do not have a finance department, and I manage 40 employees. Now that there is a need for some of them to pay taxes, I have to gather data regarding how to go about this exactly the way some sarmakpk has asked. I have to do all of it myself. I wish to know what my responsibilities are in this regard and what the employees have to do on their own. I have no seniors, no HR manager. I have surfed the net and am still surfing. I have brought a book on Taxation that I had already read and loved at the time of my graduation. I know how to calculate income tax on a given salary, but because I have no experience in taxation, I do not know exactly where to start. I'll definitely get the required data from the net and the books I have, but I'm putting up my question here so that I can get help from someone who is experienced (a manager who could guide me on this). Knowledge from books and everywhere else cannot do what a mentor or teacher does. I don't have any and am looking for one here.
Thank you to whoever is going to help.
From India, Pune
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If the employee who joins in the middle of the year files taxes annually, then you need his previous salary data. If he had paid his taxes each month at the previous company, you need not do it.
Well, I have my question too. I do not have a finance department, and I manage 40 employees. Now that there is a need for some of them to pay taxes, I have to gather data regarding how to go about this exactly the way some sarmakpk has asked. I have to do all of it myself. I wish to know what my responsibilities are in this regard and what the employees have to do on their own. I have no seniors, no HR manager. I have surfed the net and am still surfing. I have brought a book on Taxation that I had already read and loved at the time of my graduation. I know how to calculate income tax on a given salary, but because I have no experience in taxation, I do not know exactly where to start. I'll definitely get the required data from the net and the books I have, but I'm putting up my question here so that I can get help from someone who is experienced (a manager who could guide me on this). Knowledge from books and everywhere else cannot do what a mentor or teacher does. I don't have any and am looking for one here.
Thank you to whoever is going to help.
From India, Pune
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Dear Chandu and Madhu,
How mandatory is it that we have to deduct TDS for an employee every month? As far as I know, Income Tax should be calculated based on the assumption that the employee will be present from April to March, and the tax amount will be spread out over 12 months. As an employer, we ensure that there are no pending liabilities for a particular employee by March 31st. The tax can be deducted in a single month, alternative months, or at any time during the financial year, providing flexibility for the employee to choose based on their earning capacity and money management. To avoid this hassle, we tend to shift the burden to the employee and label it as non-compliance.
Please correct me if I am wrong and share your thoughts on this matter. This approach aims to offer hope to employees rather than leniency, preventing the situation where excess tax is deducted, and they have to seek a refund from the Income Tax department, which can be a cumbersome process.
Regards,
Raj
From India, Hyderabad
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How mandatory is it that we have to deduct TDS for an employee every month? As far as I know, Income Tax should be calculated based on the assumption that the employee will be present from April to March, and the tax amount will be spread out over 12 months. As an employer, we ensure that there are no pending liabilities for a particular employee by March 31st. The tax can be deducted in a single month, alternative months, or at any time during the financial year, providing flexibility for the employee to choose based on their earning capacity and money management. To avoid this hassle, we tend to shift the burden to the employee and label it as non-compliance.
Please correct me if I am wrong and share your thoughts on this matter. This approach aims to offer hope to employees rather than leniency, preventing the situation where excess tax is deducted, and they have to seek a refund from the Income Tax department, which can be a cumbersome process.
Regards,
Raj
From India, Hyderabad
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(Fact Check Failed/Partial)-The user's reply contains some inaccuracies. Income tax deduction at source from employee's salary is mandatory each month as per Indian tax laws to ensure timely payment to the government. The tax should be calculated and deducted monthly based on the employee's projected annual income. This practice avoids the burden of a lump sum payment at the end of the financial year and ensures compliance with tax regulations. Supreme Court Judgement Reference: The Supreme Court of India has upheld the mandatory nature of monthly TDS deductions in various cases related to tax compliance. Thank you for your input and understanding.
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Mr Raj,
To answer your query:
If your employee has a net taxable more than Rs250000 in the F/Y,TDS mechanism kicks in.
It is the duty and responsibility of the payer to deduct tax at source. If the payer fails to deduct tax at source, then the payee will not have to face any adverse consequences. However, in such a case, the payee will have to discharge his tax liability. Thus, failure of the payer to deduct tax at source will not relieve the payee from payment of tax on his income.
What are the duties of the person deducting tax at source?
Following are the basic duties of the person who is liable to deduct tax at source.
• He shall obtain Tax Deduction Account Number and quote the same in all the documents pertaining to TDS.
• He shall deduct the tax at source at the applicable rate.
• He shall pay the tax deducted by him at source to the credit of the Government (by the due date specified in this regard*).
• He shall file the periodic TDS statements, i.e., TDS return (by the due date specified in this regard*).
• He shall issue the TDS certificate to the payee in respect of tax deducted by him.
Every company gives the employee an estimated income statement and also monthly TDS deductions,It is upto employee to declare proof of savings to avoid tax.
To my knowledge there is no such flexibility for employee to decide which month and how much tax to be deducted.
Employees need to be told-plan your taxes,savings and no point railing at the TDS system or company,since they are duty bound to follow guidelines of Government on the issue.
From India, Pune
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To answer your query:
If your employee has a net taxable more than Rs250000 in the F/Y,TDS mechanism kicks in.
It is the duty and responsibility of the payer to deduct tax at source. If the payer fails to deduct tax at source, then the payee will not have to face any adverse consequences. However, in such a case, the payee will have to discharge his tax liability. Thus, failure of the payer to deduct tax at source will not relieve the payee from payment of tax on his income.
What are the duties of the person deducting tax at source?
Following are the basic duties of the person who is liable to deduct tax at source.
• He shall obtain Tax Deduction Account Number and quote the same in all the documents pertaining to TDS.
• He shall deduct the tax at source at the applicable rate.
• He shall pay the tax deducted by him at source to the credit of the Government (by the due date specified in this regard*).
• He shall file the periodic TDS statements, i.e., TDS return (by the due date specified in this regard*).
• He shall issue the TDS certificate to the payee in respect of tax deducted by him.
Every company gives the employee an estimated income statement and also monthly TDS deductions,It is upto employee to declare proof of savings to avoid tax.
To my knowledge there is no such flexibility for employee to decide which month and how much tax to be deducted.
Employees need to be told-plan your taxes,savings and no point railing at the TDS system or company,since they are duty bound to follow guidelines of Government on the issue.
From India, Pune
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(Fact Checked)-The user's reply is accurate and provides a comprehensive overview of the duties and responsibilities related to tax deduction at source for employees. Well done! (1 Acknowledge point)
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(Fact Checked)-The user reply is correct. Thank you for sharing accurate information and guidance. (1 Acknowledge point)