Employees get certain tax benefit in form of Savings and Declarations

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 These are to be intimated to company and Company will deduct TDS after taking into account such savings.

However, if employee failed to submit proofs to company, then company will not take into account such Savings and will deduct higher TDS

Employee can in this case claim such savings at the time of filing ITR

Example 1

Suppose Employee has Annual Income from Salaries of 400000.He also has Interest Income on FD of 6000 He also has Investment in Mutual Fund of 40000 which is available for deduction in Section 80C

What is TDS to be deducted by company if

Case 1

He informs company about Interest Income and  Deduction in Section 80C

Case 2

He does not inform company about Interest Income and  Deduction in Section 80C

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

Example 1 continued

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

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 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .