Employee may have other income apart from salary income like Interest Income on Savings and FD,Rental Income etc

  If Employee provides detail of same to Company, Company will take this into account while calculating TDS

If details not provided to company, company will not take them into account while calculating TDS

At the time of filing ITR (Income tax Return),Company has to pay Income tax on it as shown below

 

 Example 1

Suppose a person has Salary income of 30000 per month. He has also Interest Income of FD of 8000

What will be TDS deducted by company if

Case 1

He Informs Company about his Interest Income

Case 2

He does not Inform Company about his Interest Income

-a-

Case 1 2
MONTHLY SALARY 30000 30000
ANNUAL SALARY 360000 360000
Add    
OTHER INCOME 8000 0
GROSS TOTAL INCOME 368000 360000
TAX 11800 11000
REBATE 5000 5000
NET TAX 6800 6000
CESS 204 180
TAX+ CESS 7004 6180
MONTHLY TDS 584 515
NET SALARY 29416 29485

-ea-

Example 1 continued

What is Income Tax payable by him at the time of filing ITR in both cases

-a-

Income Tax Computation

Case 1 2
INCOME FROM SALARIES 360000 360000
INCOME FROM OTHER SOURCES 8000 8000
GROSS TOTAL INCOME 368000 368000
TAX 11800 11800
REBATE 5000 5000
NET TAX 6800 6800
CESS 204 204
TAX+ CESS 7004 7004
Less    
Annual TDS 7004 6180
Net Tax Payable 0 824

-ea-

  1. Practical Income Tax
  2. Income Tax for Salaried Employees
Ask Download

About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 6 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
Jail