Regarding Tax Paying Details - Xls Download

Hi Professionals,

I am Feeba, and I am newly appointed in an IT company where they are not deducting tax from their employees. My Managing Director asked me to pay tax, deduct the tax from all employees, and provide Form 16 to the eligible employees.

Please help me understand how I should calculate the tax, what documents I should ask my employees to produce, where to submit the tax, how many times I can pay, and how I should deduct it from their salary. The salary ranges from 5000 to 25000 per month in my company.

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Hi Feeba,

I believe I have already answered your query regarding TDS. When deducting taxes, there are various components to be considered. First, could you please tell me which city you are in? Do you have any PF benefits, and if so, what is the contribution?

If you plan the salary structure wisely, I am sure that up to a total salary of 23,000/- there won't be any TDS. For amounts above 23,000/-, once again, it depends on the savings and exemptions.

If you need more details, please share your ID with me so that I can send a few attachments.

Hi Jeevarathnam,

Thank you for your reply. We are located in Hyderabad. Nowadays, every IT company is asking for Form 16 from new joiners. This requirement is causing issues for our employees who are looking to shift to other companies. We have employees with salaries ranging from 5,000 to 25,000.

I am unsure about how to address this problem. Our final decision is to provide Form 16 for eligible employees. We provide HRA, basic salary, conveyance, medical allowance, and special allowance. Additionally, we deduct professional tax from our employees' salaries. As we have only 17 employees, we do not offer PF benefits.

Please advise me on what steps to take next. Thank you.

Hi Feeba,

Even though the total strength is 17, registration with PF is mandatory. For IT Industry, PF is mandatory for employees above 9. HRA, Medical Allowance, and Conveyance shall be exempted as per the IT exemptions. Any remaining benefits should be treated as income from salaries. If you share your ID, I can provide the IT calculations.

Hi Jeevarathnam,

Thank you for your reply. I agree with you, but my MD said we need 2 more projects before we can address PF. Is there anything we can do with Form 16 without PF?

My ID: feebakatti@gmail.com

PF and Form 16 are entirely different. PF is just for considering the savings.

Hello Feeba,

I am enclosing a format that can calculate TDS, and you can deduct accordingly.

Hi Somani,

Thank you for your attachments. One more question: Our company has TAN and PAN numbers.

1. Should I deduct the TDS from employees' salaries every month?
2. Should I submit this Form 16 to my auditor?
3. Is there any tax paid by the employer annually?

Please let me know.

Hello
Our Company got TAN and PAN Numbers
First of all its good that you are having TAN
1. Should i deduct the TDS from Employees salary every month
Yes for salary you have to deduct TDS on monthly basis. There is Interest and penalty provision so please always take care of payment and filling of return in time.
2. Should i submit this Form 16 to my auditor
No you have to issue form 16 and have to to give to employee whose TDS has been deducted.
3. Is there any Tax paid by the Employer annually
No, it’s on monthly basis.
Thanks and regards

Somani sir, good evening. For AY 14-15 in income tax, nothing has changed; the tax slab is the same as AY 13-14. However, I read that a 2000 Rs tax credit is introduced only if the taxpayer falls in the first slab, i.e., 2 to 5 lakh. Please clarify this 2000 Rs credit issue. Thank you.