After receiving Form 12B chosen employer shall compute taxes and deduct TDS accordingly. Form 12B contains details of salary received and TDS deducted by another employer. In case salary is received by two or more employers, employee shall choose any one employer and furnish Form 12B to chosen employer.
How to deduct TDS if salary is received by two or more Employer? To get salary without TDS or with lower TDS, employee will have to approach Assessing Officer by submitting application in Form No.13 u/s 197. How salary can be received without deduction of TDS or with Lower TDS? Otherwise he would be treated as assessee in default and has to pay interest. If TDS is not deducted than section 191 of Income-tax Act, 1961 is attracted and he has to make direct payment of taxes. When you are required to make Direct Payment of Tax?Įmployee has to make sure that TDS has been deducted or not. Employee should necessarily file his return of income at the yearend declaring all his income.Ħ.Form 12BA is provided along with Form-16. In case salary does not exceed 1,50,000/-, Part-B of Form-16 itself would be sufficed and there is no requirement of separate Form 12BA. For Perquisite assessee is required to issue Form 12BA when salary exceeds Rs.1,50,000/. TDS certificate will be given to employee in Form No.16 annually on or before May 31 after the end of financial year unless extended by Govt.After filing TDS return, TDS deducted is reflected in Form 26AS of employee. If employer deducts TDS then he has to file TDS returns quarterly.Deductor has to file quarterly TDS returns and after filing quarterly returns, TDS deducted shall be reflected in Form 26AS.ĥ.Suppose salary for month of May is paid on 31 st May, than TDS is required to be deducted on 31 st May and payment of TDS deducted shall be made up to 7 th Deductor has to make payment of TDS deducted within 7 days from end of month in which TDS has been deducted.If PAN is not given by employee then employer shall deduct TDS TDS can be increased or decreased at the time of deducting TDS for the purpose of adjusting any previous deficiency or excess deduction.Rate at which TDS should be deducted is as follows.
Rajesh (40 years) works for Financial Tree Company and receives salary of Rs.1,25,000/- monthly for F.Y.2019-20.
TDS should be deducted at the time of making payment and not when salary becomes due.Employer-Employee relationship should exist to deduct TDS.The terms of deducting TDS mentioned in Income-tax Law are as follows. Section 192 of Income-tax Act puts an obligation on employer to deduct tax at the time of making payment of salary to employee. Therefore concept of TDS was introduced which aimed at collecting tax from sources itself. to regulate each salaried person and collect taxes from them. The population of India is 1.25 crores and majority of working population earns income from salary. Deferment of TDS in case of ESOP of Start-ups 12. How to deduct TDS in case of relief u/s 89.