Is it necessary for my employer to deduct income tax from my Salary?
Yes. It is his duty as per law to
deduct tax from the income paid to you by him. This deduction is called TDS
(Tax deducted at source). TDS is deducted each month by employers based on tax
projections declared by the employee at the beginning of each financial year. In
case you think that you may not have any tax liability, you may inform your
employer about your claims (including loss for setting off) and demonstrate
that there is no tax liability in your hand for that particular year.
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What is Tax-Free Salary? In case of Tax-Free Salary, is the amount of income tax paid by the employer required to be included in the taxable income from Salary?
When the employer agrees to pay tax on the Salary paid to the employee without applying any cap on the amount of tax to be paid, it can be said to be a Tax-Free Salary. However, this tax-free salary is also taxable in the hands of the employee. The ...
Besides Salary income I have other income on which tax is not deductible. Do I need to inform my employer about this for deduction of tax?
You may inform your employer so as to enable him to determine the correct tax deductible from your income. In case you don’t provide these details to your employer, you may wish to pay advance tax on the income other than income from Salary.
What are the different types of income that qualify as Salary under the Income Tax Act?
As a salaried person, you may be getting income in many forms. For the purpose of tax, the incomes that qualify as Salary are listed below: Salary: This is generally a monthly remuneration extended by the employer to the employee in exchange for the ...
My employer paid me Salary for a part of the financial year but my services were rendered for the full year. Do I need to pay tax on the entire amount of Salary due to me from the employer?
Any Salary due from an employer or a former employer to an employee in the previous year whether paid or not, is chargeable to income-tax under the head ‘Salaries’ (As per Clause(a) of section 15). In other words, the Salary accrued or which becomes ...
I have received non-monetary perquisites from the employer on the value of which he has paid tax. Do I need to include this tax amount as a part of my Salary income?
No. The I-T Act provides option to the employer to pay tax on the non-monetary perquisites. However, by virtue of Section 10(10CC), tax paid by employer (on behalf of employee) on non-monetary perquisites will be exempt from tax in the hands of ...