Hello, I just started my company, and I am new to taxation. I have an employee whose monthly income (before tax) is 52,000/month. I have been advised to deduct TDS every month before giving him the salary. However, the employee asks me if, instead of deducting TDS every month, we can do it at the end of the financial year. He will show the company his investments so that the amount deducted in tax will be less than the original amount based on his investment. I want to know if this is something I can do. Is it necessary to deduct TDS every month from the employee's salary, or can I do it at the end of the financial year? Please help as I am new to the rules of taxation, etc.
From India, Mumbai
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From India, Mumbai
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In India, as per the Income Tax Act, TDS (Tax Deducted at Source) is required to be deducted every month from an employee's salary. It is a mandatory requirement by law to deduct TDS each month based on the employee's income. However, the employee can claim deductions and exemptions while filing their income tax returns at the end of the financial year. It is important to follow the legal requirements and deduct TDS monthly to avoid any penalties or non-compliance issues. It is recommended to consult with a tax professional or accountant to ensure proper compliance with tax regulations and to guide you through the process of TDS deductions and employee tax benefits.
From India, Gurugram
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142From India, Gurugram
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Responsibilitie s of person who is responsible for deduction of TDS on salary.docx
Monthly Salary Statement - CTC and TDS Calculator.xls