If I take a leave from March 3rd to March 31st on loss of pay (LOP)/ leave without pay(LWP), will my tax get deducted for that particular month?
From India, Chennai
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From India, Chennai
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Hi,
Income Tax deductions are based on:
1) Total taxable earnings for the financial year
2) IT regime you had opted for - old or new
3) Investments you had made under various sections like 80C, 80D, etc. (No. 3 applicable only if you had opted for the old regime)
The normal process followed by companies is that they will first calculate the projected earnings for the whole financial year and then check the projected investment declaration. After that, they will arrive at the monthly Income Tax to be deducted in EMIs. In case of any loss of pay in the middle of months, there will be some variation in the monthly deduction amount. This is the standard process.
However, some companies follow year-end IT deductions for the last 3-4 months.
So, it all depends on your income tax slab, investments made, deduction method followed, etc.
From India, Madras
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1015Income Tax deductions are based on:
1) Total taxable earnings for the financial year
2) IT regime you had opted for - old or new
3) Investments you had made under various sections like 80C, 80D, etc. (No. 3 applicable only if you had opted for the old regime)
The normal process followed by companies is that they will first calculate the projected earnings for the whole financial year and then check the projected investment declaration. After that, they will arrive at the monthly Income Tax to be deducted in EMIs. In case of any loss of pay in the middle of months, there will be some variation in the monthly deduction amount. This is the standard process.
However, some companies follow year-end IT deductions for the last 3-4 months.
So, it all depends on your income tax slab, investments made, deduction method followed, etc.
From India, Madras
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In addition to what Lakshmi Narayan has said, I would like to mention that since the LOP occurs in the last month of the financial year, the employer can decide whether to deduct or not based on the tax deductions made in the preceding months. If your tax liabilities have been covered by the deductions made in the last 11 months, then the employer will overlook the salary of just two months. However, if the total tax payable is yet to be deducted, then the two days' salary will be subjected to TDS, or even the entire amount (of two days' salary) shall be taken as tax.
From India, Kannur
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From India, Kannur
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