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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-

Case12
MONTHLY SALARY3000030000
ANNUAL SALARY360000360000
Add  
OTHER INCOME80000
GROSS TOTAL INCOME368000360000
TAX1180011000
REBATE50005000
NET TAX68006000
CESS204180
TAX+ CESS70046180
MONTHLY TDS584515
NET SALARY2941629485

 -ea-

Example 1 continued

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

-a-

Income Tax Computation

Case12
INCOME FROM SALARIES360000360000
INCOME FROM OTHER SOURCES80008000
GROSS TOTAL INCOME368000368000
TAX1180011800
REBATE50005000
NET TAX68006800
CESS204204
TAX+ CESS70047004
Less  
Annual TDS70046180
Net Tax Payable0824

-ea-

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