Tax Deduction At Source (TDS) On Salary Income.

imagesTIME FOR DEDUCTION OF TDS

It is the responsibility of the employer to deduct TDS on salary and deposit to government. In the case of salaries the liability to deduct tax arises only at the time of payment.

EXEMPTION LIMIT FOR A.Y.2016-17 UPTO WHICH NO TDS DEDUCTION IS REQUIRED

  • Estimated Annual Income of Rs.2,50,000 for any other individuals
  • Estimated Annual Income of Rs.3,00,000 for an individual resident in
  • India of the age of 60 years and above but less than 80 years
  • Estimated Annual Income of Rs.5,00,000 for an individual resident in India of the age of 80 years or more

TIME LIMIT FOR DEPOSIT OF TDS

  • On or before 30th day of April where the income or amount is credited or paid in the month of March.
  • In any other case, on or before seven days from the end of the month in which The deduction is made or Income tax is due under section 192 (1A)

TIME LIMIT OF ISSUE OF TDS CERTIFICATE

The person responsible for deducting the TDS is required to issue a certificate in Form No. 16 (Salary TDS Certificate) by 31st May of the financial year immediately following the financial year in which income was paid and tax deducted to the employee on account of tax deducted at source.

Further, Form No. 12BA (statement of the value of perquisites and profit in lieu of salary) shall also be issued to the employee along with Form No. 16.

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