TDS on Salary

[Pradeep Kaushik]

Respected Sir,

This is regarding the calculation of taxable Salary. One employee joined our company in May 2011@ Rs. 60000/- per month. He resigned on 1 March 2012. during his tenure he got short salary due to deduction of Leave, In Sept 2011 Rs. 56000/- and in November 2011 Rs. 54000/-. So we Consider his taxable Salary for TDS purpose like 60000.00X10 or (60000X8+56000+54000). What Amount we have show in our Company's TDS Return.

Please Clarify.

Best Regards.

Pradeep kaushik

[CAGOPALJI AGRAWAL]

Not the nominal salary but actual salary as per second formula.

Yes ..only the actual salary paid has to be taken into account....

AI Summary

TDS on salary requires calculating tax on actual salary paid rather than on nominal pay multiplied by months.
For TDS purposes the relevant taxable salary is the salary actually paid to the employee during the relevant period, not the employer's nominal monthly pay; employers must aggregate actual monthly payments (including months with reduced pay due to leave or deductions) and base withholding on that aggregate rather than on nominal pay multiplied by months.