Tax Deductions

Ask the Community Income Tax
1

This is Jagadish …

We are start up company started in Jan’21 … just wanted to check while processing payroll do we need to deduct Tax for these 3 months (Jan’21 - Mar’21) ?

1 Like
2

Hi,

Tax Deductions will depend on Taxable Income of an employee and as per tax slabs.

You should collect below details from Employee:

  1. You should take the Investment Declaration Form 12BB ( The Form 12BB is a statement of claims by an employee for deduction of tax.)
  2. Previous Employer Income & Tax deducted
  3. Income from other Sources

Based on above data & Salary income from current employer, you should do the Tax Workings & deduct the Tax if any liability arises.

2 Likes
3

Hello Jagadish

If the Salaries for any employee is more than 2.5 lakhs in these 3 months, you have to deduct TDS as per Income tax slab rates

1 Like
4

We have to see whether overall Income for FY 2020-21 exceeds the limits prescrobed under IT Rules and consider investments into account and deduct TDS accordingly.

2 Likes