Hello,
I just started my company and I am new to taxation. I have an employee whose monthly income (before tax) is 52000/month. I have been advised to cut TDS every month before giving him the salary.
However the employee asks me that instead of deducting TDS every month, can we do it at the end of the financial year? He will show the company his investment so that the amount that gets deducted in tax will be lesser than the original based on his investment.
I want to know if this is something I can do? Is it necessary to deduct TDS every month from employee's salary? Or I can do it at the end of the financial year?
Please help as I am new to the rules of taxation,etc.
From India, Mumbai
I just started my company and I am new to taxation. I have an employee whose monthly income (before tax) is 52000/month. I have been advised to cut TDS every month before giving him the salary.
However the employee asks me that instead of deducting TDS every month, can we do it at the end of the financial year? He will show the company his investment so that the amount that gets deducted in tax will be lesser than the original based on his investment.
I want to know if this is something I can do? Is it necessary to deduct TDS every month from employee's salary? Or I can do it at the end of the financial year?
Please help as I am new to the rules of taxation,etc.
From India, Mumbai
Dear newtotax,
When you ask some query, business etiquette demand disclosure of your name, designation etc. What is there to hide?
Now coming to your query. My limited knowledge says you should deduct the TDS every month or as and when you pay. I say this because sometimes my clients have deducted TDS for far lower amount than what you have mentioned and that too when the payout was for just one time!
To settle doubts on TDS once for all, you should take small course on TDS. In the immediate future Satvam Consulting, Mumbai will conduct courses on this subject. You may click here to refer their training calendar.
Ok...
Dinesh V Divekar
From India, Bangalore
7736When you ask some query, business etiquette demand disclosure of your name, designation etc. What is there to hide?
Now coming to your query. My limited knowledge says you should deduct the TDS every month or as and when you pay. I say this because sometimes my clients have deducted TDS for far lower amount than what you have mentioned and that too when the payout was for just one time!
To settle doubts on TDS once for all, you should take small course on TDS. In the immediate future Satvam Consulting, Mumbai will conduct courses on this subject. You may click here to refer their training calendar.
Ok...
Dinesh V Divekar
From India, Bangalore
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