TAN number and TDS deduction

Hi,

TDS on salary to be deducted , when after taking all the income from other sources and taking all the deductions into consideration. there is still taxable income.

1) if the gross salary of the employee is more than taxable slab (income tax slab) and after deductions under section 80cce (for which employee is required to give documents proofs) there is taxable income, then TDS is need to be deducted @ average rate.

so ans for ques 1 & 2 is NO

3) Yes, as per section 194 C, if the one time payment of a contractor exceeds Rs 30000/- then TDS has to be deducted.

or Aggregate amount of such sums credited or paid exceed and likely to exceeds Rs. 75,000 (Rs. 1 Lakh from financial year 2016-17).

4) tax slab is same as income tax slab.

5) yes, you can apply for TAN online, Once you get TAN, you are required to deposit TDS on time and file TDS return regularly.

Dear Sir,

1.No you don't need to deduct.

2. Yes you have to deduct the TDS.

3. Yes, you have to deduct the TDS if you were liable for tax audit in the last year.

4. Dint get your question.

5. Yes, you can apply for TAN number online. Yes, you have to file the quarterly tds returns

Please feel free to call/ revert in case of any doubts

Thanks and Regards

Abhishek Dugar

CA CS B.Com

Here is the method to Calculate TDS on salary for future reference:

You can calculate TDS on your income by following the below steps.

Calculate gross monthly income as a sum of basic income, allowances and perquisites.

Calculate available exemptions under Section 10 of the Income Tax Act (ITA). Exemptions are applicable on allowances such as medical, HRA, travel.

Reduce exemptions according to step (2) for the gross monthly income calculated in step (1).

As TDS is calculated on yearly income, multiply the corresponding figure from above calculation by 12. This is your yearly taxable income from salary.

If you have any other income source such as income from house rent or have incurred losses from paying housing loan interests, add/subtract this amount from the figure in step (4).

Next, calculate your investments for the year which fall under Chapter VI-A of ITA, and deduct this amount from the gross income calculated in step (5). An example of this would be exemption of up to Rs.1.5 lakh under Section 80C, which includes investment avenues such as PPF, life insurance premiums, mutual funds, home loan repayment, ELSS, NSC, Sukanya Samriddhi account and so on.

Now, reduce the maximum allowable income tax exemptions on a salary. Currently, income up to Rs.2.5 lakhs is fully exempt from paying taxes, while income from Rs.2.5 lakhs to Rs.5 lakhs is taxed at 10%, and Rs.5 lakhs to Rs.10 lakhs income bracket is taxed at 20%. All income above this amount is taxed at 30%.

Do note that senior citizen have different tax slabs and receive higher exemptions than those discussed above.

Yes

It should be individual.

Hi,

you need to choose individual

Hi,

1. No need to deduct Tax if the Salary paid is below basic exemption limit

2. You will have to deduct tax provided the Income after allowing all Exemptions and Deductions is more than the Basic Exemption Limit

3. Yes. You have to deduct TDS u/s 194C at 1% if the Contractor is an Individual or a Proprietary Concern or an HUF. 2% in all other cases. TDS u/s 194C is applicable if a single payment exceeds 30,000 or aggregate of all Payments in a Financial Year exceeds Rs. 1 Lakh

4. Yes. They are same as Tax slabs in case of TDS on Salary

5. Yes you can Apply for TAN Online. You will have to file TDS returns for every quarter in which TDS is deducted

While applying for TAN as a Proprietary concern, you have to select Individual

I assume that your question is satisfactorily answered .

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, ACA, LLB-GEN, CERT. FAFP

individual.