Hello, I recently hired (a girl) at INR 22,000 per month. I want to know that is there way I can save myself from TDS liability and pay her full salary? I don't have TAN # for the firm. The girl would be doing saving under 80C and is saying that she can provide details if needed. What details would I need in that case?
Hi
Her annual income would be 264000. Considering investments under 80 C and rebate available under 87A, her total income income shall be not chargeable to tax and hence no TDS is required to be deducted.
Make sure you receive proofs of such investments and other income details, if any. Get a computation of her income done well in advance. We may help you with the same.
Hi,
Hope you are doing well !!
The maximum tax exemption limit is Rs. 2.5 lakh.
You are paying Rs. 22,000/-per month i.e Rs 2.64 lakh.
As such there will be no tax liability on her. So, you do not need to deduct any tds.
Besides that, under Section 80C, the maximum tax exemption limit is Rs 1.5 Lakhs per annum. The various investments that can be claimed as tax deductions under section 80c are listed below;
PPF (Public Provident Fund)
EPF (Employees’ Provident Fund)
5 years Bank or Post office Tax saving Deposits
National Savings Certificates (NSC)
ELSS Mutual Funds (Equity Linked Saving Schemes)
Children’s Tuition Fees
Life Insurance Premium
Etc.
You just need supporting documents of any of above investments.
Thanks & Regards,
Payal Chhajed
In that case you don't require to deduct TDS. Collect investment proofs.
No Requirement of Tax deduction.
Hi,
No tds is required to be deducted as there is no tax liabilty.
Also, it is not your responsibilty to know her other income and deduct tds.
If she is having other income, she will only liable to pay tax.
You do not need to worry.
Based on the salary that you are paying and the investment your employee is doing, there is no need for tds deduction. Ensure you take all the supportings from her.
Regards,
Nikhil.
Since she is saying she will claim 80C deduction and all such things don't worry you don't need to deduct TDS and I am assuming you are a proprietor and so you need to apply for TAN and deduct TDS only if you were liable to audit in the previous year.
This is not a major amount and there are many accounting ways to plan tax so if there is any issue you can contact me for that option.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
Hi,
- Total salary for the year will be Rs.2,64,000. From A.Y. 2019-20, there is a flat standard decution of Rs.40,000 from the salary income which reduces her taxable salary to Rs.2,24,000. Maxium exemption is Rs.2,50,000. She is already falling below the exemption limit therefore there is no need to deduct TDS and ask for 80C investments.
Thanks
22000 * 12 = 264000 basic exemption limit is Rs. 250000 so balance income is Rs.14000 so if she does at least a minimum of Rs.15000 of investment in 80C then no tax liability and no need to deduct and file TDS return..
