In case, the employer fails to deduct the same, he will be liable to pay the penalty and interest. Every employer who pays a salaried income to his employees needs to deduct TDS on salary if the income amount is over the basic exemption limit. There is no form or specific process to claim TDS refunds. The deductee needs to file the income tax returns usually only. However, if there is any excess of TDS on salary charged, what the employee is supposed to pay in the given year, then the refund amount will be due and will need to be shown in the returns filed.
Otherwise, TDS on salary is a mandatory deduction for every employer. This rule shall also apply to employees who do not have a PAN. Many times, the investment details declared at the start of the financial year do not seem to match with the actual investments made at the year-end.
In case of such a mismatch, TDS on salary will be refundable w. To ensure that the exact tax amount is credited and reflected in all the Forms, a revised TDS return needs to be filed.
Particulars that can be Corrected. The deductor employer in case of TDS on salary will pay the charge again for revised return. Revised Return can be filed several times for incorporating any changes. Due to Coronavirus and its impact, certain changes in rules applying to calculation and deduction of TDS on salary have been introduced this year. They are as follows:. However, the TDS deduction for non-salaried individuals has not changed.
The due date for audit will extend from 30th September to 31st October this year. In such a case, the employee cannot get a tax credit of the TDS on salary while filing their income tax return. In case the employer fails to deduct or deposit TDS on salary, then they will have to pay the penalty in the form of interest on the same.
The table below explains the interest the employer will need to pay under two different cases:. The employee can minimize TDS on salary by investing in specific tax saving instruments. The deduction benefits on TDS on salary can be enjoyed under the provisions of different sections. Here are a few important ones below: [3]. There are many tax-saving instruments covered under this Section, such as:. ULIP Unit linked investment plan.
This Section also covers house loan repayment principal amount subject to the limit of Rs. Under this Section, employees can minimize TDS on salary if they are first-time homebuyers and have taken a loan. They will be able to claim tax benefits on home loan interest amounts. This deduction will be over and above the limit of Rs. As per rules of Income Tax Act, the employee can claim credit for TDS on salary that is either paid or accrued in the same financial year in which the TDS on salary is deducted.
However, when income is paid in advance such as advance rent , it will not belong to one FY, and credits for such income shall be carried forward to the next financial year.
There are two kinds of TDS certificates that the deductor can issue. Form Certificate that employer issues to employees. It lists down TDS on salary details made throughout the year. TAN is required to be obtained by a person who is a deductor. The deduction is based on the TDS on salary slab. You can also use the calculator for your TDS calculation on salary for FY or the previous financial years. Close Search. Taxes shall be deducted at the rates specified in the relevant provisions of the Act or the First Schedule to the Finance Act.
However, in case of payment to non-resident persons, the withholding tax rates specified under the Double Taxation Avoidance Agreements shall also be considered. In such case, the Pay and Accounts Officer or the Treasury Officer or the Cheque Drawing and Disbursing Officer or any other person by whatever name called to whom the deductor reports the tax so deducted and who is responsible for crediting such sum to the credit of the Central Government, shall submit a statement in Form No.
Click to Wetelltagline. For instance, banks issue Form 16A to the depositor when TDS is deducted on interest from fixed deposits. Form 16 is issued by the employer to the employee. This form is a consolidated tax statement which is available to all PAN holders. This form also has income tax directly paid by you — as advance tax or self assessment tax. It is an online TDS software that requires no download or desktop installation or software update.
It is also compatible with TDS returns of previous financial years for easy import. This initiative was implemented by the Finance Ministry to increase transparency and reduce the cases of TDS mismatches at the time of income tax filing. Taxpayers can cross-check the information provided in the SMS with the information on the payslips to make sure that there is no mismatch. TDS mismatch could be a common reason for incorrect income tax return filing.
On salary, TDS is deducted based on the income tax slab applicable to you. The tax rates are not based on your total income. Hence, you would suffer a TDS on your receipts in certain cases. Separately, you would be required to calculate your annual income by aggregating income from all sources.
Your actual tax liability would be calculated on the total taxable income. From the taxes calculated, you can claim credit for TDS deducted on your various receipts.
Reduce the tax deducted at source from your actual tax liability to know the balance to be paid to the income tax department. You may have a refund too. In both cases, you have to file an income tax return and pay the tax due or claim a refund. This is applicable when the total tax deducted or collected is more than Rs.
Check out the late filing fee and interest applicable. From FY , you can choose to pay income tax under an optional new tax regime.
According to Section O, an e-Commerce operator is required to deduct TDS for facilitating any sale of goods or providing services through an e-Commerce participant. Read in detail here. Read the article to understand the implications of section K. There are certain situations where the recipient would not have PAN. In such circumstances, the payer is required to adopt the provisions of Section AA. Organisations or taxpayers that deduct taxes at source can view the filed TDS statement on the income tax e-filing portal.
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