Financial Year 2014-15
Asst. Year 2015-16
Payment or date of the entry as salary in books of accounts (accounting) whichever is earlier
Only when the salary or/and other sources of income (if declared by employee) in aggregate (read the below para for all includable amounts) after considering chapter VI-A deductions (if any) exceeds the basic exemption limit (refer below slab rate table)
Includable Amounts in Deducting TDS in the hands of employer
- Employee can declare all his incomes from various sources, losses in house property where employee has paid an interest on housing loan should be considered by the employer in calculating Gross Total Income subsequently reduce his TDS amount.
- Other than the said loss in House Property, no other losses can be considered for the calculation of Gross Total Income of the employee for the purpose of deducting TDS.
(Note: Employee can still claim allowable losses while filing his return though)
Rate of TDS
Net Taxable Income
|Basic Rate (Including Education Cess)|
|Resident Senior Citizen above 60 years of age but below 80 years||Resident senior citizen above 80 years of age||
All other Resident individuals, HUFs, AOPs, BOI, AJP
Up to Rs. 2,50,000
|Rs. 2,50,001 to 3,00,000||Nil||Nil||10% * (Taxable Income – 2,50,000)|
|Rs. 3,00,001 to 5,00,000||10% x (Taxable Income – 3,00,000)||Nil||10% * (Taxable Income – 2,50,000)|
|Rs. 5,00,001 to 10,00,000||Rs. 20,000+ (Taxable Income – 5,00,000) x 20%||20 * (Taxable Income – 5,00,000)||25,000+20% x (Taxable Income – 5,00,000)|
|Rs. 10,00,0001 & above||Rs. 1,20,000+30 x (Taxable Income – 10,00,000)||Rs. 1,00,000+30% x (Taxable Income – 10,00,000)||Rs. 1,25,000+30% x (Taxable Income – 10,00,000)|
Note: A Tax Rebate of Rs. 2,000/- is provided u/s 87A in case Total Income declared is less than 5,00,000
Above rate should be increased by 10% towards surcharge if applicable and 3% of education cess in all cases. For detailed explanation of surcharge go here
- Amount arrived as per above table divided by 12 months, So much of amount should be deducted monthly.
- If TDS doesn’t apply or not required to be deducted, employee can apply for assessing officer for issuance of certificate and produce the certificate to the employer.
- If the Employee doesn’t provide the PAN then tax should be deducted at 20% or Amount calculated as per above table, whichever is higher.
Due date for depositing TDS:
- If deductor is govt or office of govt: on same day when deducted if not accompanied by income tax challan or otherwise within 7 days from the end of month in which tax is deducted
- In case of others:
|April – February||7th of Following month in which TDS is deducted|
|March||30th of April|
Last updated 17th January 2015