Annual income is 4.95L, deduct tds or not?

Ask the Community Income Tax
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1

Hi,

If one individuals annual income is 4.95L, then company should deduct tds or not? should company apply section 87A?

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2

Hi Gowri,

The company need not deduct tax as the employee is eligible for a Rebate under Section 87A.

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3

No. TDS will not deduct on Annual income. TDS will be deducted on taxable income if your taxable income is below 5 lakhs no TDS will be deducted and if you are taxable income above five lakh but less then 10 lakhs TDS will be deducted at the rate of 20%

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4

Yes, company will not deduct the TDS, but as per the employee request, we can deduct. may be employee is having other income and they don’t want to present the same in company. employee may think to shown his income during individual IT filling return.

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