1) Yes TDS will be applicable. Salary upto 2.5 lacs is exempt. Above it tax is to be deducted as per the applicable slab rates. Tax can be deducted now also on the salary paid till date.
TDS liability
Hello, am an individual person and for FY20 or before not liable for tax audit (44AB) My question is , 1) i have paid a salary of 8 lakh to other person in FY20 but not deducted TDS, thinking of a individual having no liability for audit can give salaries with out deduction of tds but now when i refer to other CA they saying 192(salaries) dont cover under this exemption of 44AB tax audit Can you answer this and if answer is no need to deduct TDS can you provide any official source so i can show it to my CA 2) and if answer is yes, I want to know if other person Net taxable income is 4.5lakh then also should I deduct TDS or not Thank you????
Asked 5 years ago in Income Tax
Hi
Yes TDS will be deducted. As your salary more than 2.5 lakh TDS will be deducted per slab rate applicable to you.
Dear Sir,
It is mandatory to deduct TDS on salary paid by an individual, if the salary paid is above the Tax Exemption list.
Thanks and Regards
Shiv Kumar Agarwal
Dear Sir,
Hope you are doing well !!
Yes, you would be required to deduct tds as income is above Rs 2.5 lakh.
However, he can claim the rebate of all tax payable if his taxable income is up to Rs 5 lakh under section 87A in his ITR when he files it.
It is advisable to take a phone consultation for detailed discussion.
Hello,
Yes, TDS deduction will be required.
TDS is to be deducted as per slab rates applicable.
I hope this answer satisfies your requirements.
Regards,
CA Hunny Badlani
Under which section are you going to file return of income?
If it's 44AD no need to deduct TDS as you are not required to maintain books of accounts and hence no disallowance of expenses.
Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.
Thank you
Hi,
Your CA is right. You need to deduct TDS on salary, even if you were not liable to audit.
However, as per his computation, he is not liable to pay any tax, then you might mot required to deduct tds if his income ia getting reduced to 4.5 lacs because of any or all of the following:
1. deduction u/s 80
2. loss from house property
3. deductions under salary head
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