TDS on Salaries

[Siraj Shaikh]

Company has already deducted Rs. 30,000 TDS on salary for 5 months on average basis. On F&F, the company is further going to deduct TDS of around Rs.60,000.

Since, i m leaving this job and going to search a new one. suppose that I didnt get the job in this financial year. And my taxable income paid by the company comes to Rs. 6,00,000, can I stop the company for not deducting the TDS under the provisions of Section 192(2B) ?

[CAGOPALJI AGRAWAL]

No, section 192(2B) is for enhancement of income and tax liability not for reduction. Employer has to deduct TDS on estimated basis. The unemployment condtition etc can not be anticipated.

[Siraj Shaikh]

You mean to say that the only option with me is that, in case my income for the financial year did not exceed, say Rs. 4,00,000, I need to file the returns and then claim refund.

[SATHEESH NAIR]

THE INCOME TAX OFFICER MAY GIVE CERTIFICATE TO NOT DEDUCT THE TDS FROM  YOU PAYMENT. THIS IS ONLY THE WAY. PL . APPROCH YOUR JURI., ITO. TKS

[CAGOPALJI AGRAWAL]

No deduction certificate is not given in case of salary income. Lower deduction certificate application would not be entertained by AO under the cited circumstances.

AI Summary

TDS on salaries: employers must deduct on estimated income; employees may claim refund by filing returns, not prevent deduction. Employers must deduct TDS on salary on an estimated annual basis and cannot anticipate unemployment to reduce withholding. Section 192(2B) addresses enhancement of income/tax liability and does not authorize reduction of employer withholding. Employees who expect lower annual tax must generally accept deduction and claim any excess by filing a return; administrative certificates to avoid salary TDS are not ordinarily available.