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 the Income Tax department can be a cumbersome process, so I would like to know how I can 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 a tax-saving scheme?
Thanks
From India, Hyderabad
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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 the Income Tax department can be a cumbersome process, so I would like to know how I can 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 a tax-saving scheme?
Thanks
From India, Hyderabad
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Dear Sreejesh,
You can definitely save on your taxes. First, you have to go through your salary breakdown and understand the components. There will be tax-saving elements like Basic, HRA, Conveyance, Medical reimbursement, LTA, etc. Based on these components, you can plan your tax savings.
Every company requests investment declarations at the beginning of the year. This is essentially a commitment from the employee that they will invest in savings under certain categories during the financial year. These investment declarations will be taken into account, and taxes will be calculated accordingly. By the end of the year, you will be required to submit proof for the investment declarations made at the beginning of the year. Failure to provide this proof may result in tax liabilities.
Some companies divide the tax into 12 parts and deduct it monthly, while others, like government organizations, deduct it in the last two months of the financial year.
Thank you.
From India, Hyderabad
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70You can definitely save on your taxes. First, you have to go through your salary breakdown and understand the components. There will be tax-saving elements like Basic, HRA, Conveyance, Medical reimbursement, LTA, etc. Based on these components, you can plan your tax savings.
Every company requests investment declarations at the beginning of the year. This is essentially a commitment from the employee that they will invest in savings under certain categories during the financial year. These investment declarations will be taken into account, and taxes will be calculated accordingly. By the end of the year, you will be required to submit proof for the investment declarations made at the beginning of the year. Failure to provide this proof may result in tax liabilities.
Some companies divide the tax into 12 parts and deduct it monthly, while others, like government organizations, deduct it in the last two months of the financial year.
Thank you.
From India, Hyderabad
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