+ Reply to Thread
Results 1 to 11 of 11

Thread: TDS at 60% Arrear

  1. #1
    Member akraiism is on a distinguished road
    Join Date
    Jun 2009
    Posts
    64

    Default TDS at 60% Arrear

    CBDT advised deduction of TAX at source on second installment of arrear payment vide following order,although it is advise but with the same order it seems mandatory for all offices to deduct and deposit to income tax account instantly otherwise employer will be penalised with interest payment.It is not clear with this order how department will do this, i mean without submission of self assesment form how will employer know about saving plan of employee? and what will be about u/s 89 tax exemption in case of arrear payment, if they directly deduct tax?It seems this order is going to little bit rdeuce the amount of arrear?
    incometaxindia.gov.in/archive/BreakingNews_Circular6of2009_01092009.pdf

  2. #2
    Member venkatcustoms is on a distinguished road
    Join Date
    Jan 2009
    Posts
    87

    Lightbulb

    Quote Originally Posted by akraiism View Post
    CBDT advised deduction of TAX at source on second installment of arrear payment vide following order,although it is advise but with the same order it seems mandatory for all offices to deduct and deposit to income tax account instantly otherwise employer will be penalised with interest payment.It is not clear with this order how department will do this, i mean without submission of self assesment form how will employer know about saving plan of employee? and what will be about u/s 89 tax exemption in case of arrear payment, if they directly deduct tax?It seems this order is going to little bit rdeuce the amount of arrear?
    incometaxindia.gov.in/archive/BreakingNews_Circular6of2009_01092009.pdf
    Dear Akraiism,

    It is mandatory on the part of the DDO to deduct tax at source in fact from the month of April itself. A rough calculation is to be made about the expected annual income of an employee and based on this assumption, tax is to be calculated and average monthly tax amount is to be deducted. If the employee is having some objection over the computation of such tax, he has to properly submit the proposed savings and thus the nearly corrected tax is to be deducted every month.

    So, the order of the CBDT has merits.

    Better calculate rough estimate of income tax and give intimation to DDO for deduction of tax from monthly salary. This would ease our tensions over tax burden during Jan-March of every year
    Last edited by venkatcustoms; 04-09-2009 at 07:25 AM.

  3. #3
    Member mrajeev is on a distinguished road
    Join Date
    Mar 2009
    Location
    New Delhi
    Posts
    32

    Default TDS at 60% Arrear

    I agree with the views of Venkatcustoms given above. The Employees (From whom Income Tax is likely to be deducted) are supposed to submit the details of planned savings in the month of March in every financial year so that the Advance Tax Planning can be done in a proper way by the DDO. In the absense of that, the DDO should calculate and deduct tax on the income while keeping in mind the savings made through Salaries such as GPF/HBA etc. Further, this is not an Unforeseen Arrear like the 40% during last year. It was declared exactly a year back that the 60% will be paid in the FY 2009-2010. So those who wants the exemption should have intimated it to the DDO in writing well in advance without waiting for the formal orders to be issued by the Govt/DDO.

  4. #4
    Member rakeshmehra30 is on a distinguished road
    Join Date
    Aug 2009
    Posts
    53

    Default

    the DDO has to deduct IT as per the order , i would advice every body that they should have an estimated income tax and should plan their savings and also to inform the DDO about that as early as possible and the IT will be deducted accordingly, and when demanded u have to submit the proof of savings (probably in the month of sept or oct ) so DDO can calculate the exact IT and deduct the balance from the remaining months, but it is mandatory for them to deduct.

  5. #5
    Senior Member badri mannargudi is on a distinguished road
    Join Date
    Sep 2008
    Location
    Surat
    Posts
    283

    Exclamation

    Dear friends!

    DDO (AO/CAO, in our department) has to deduct TDS and there is no second opinion about that. Employees should furnish the details of savings such Premia (Life/medical Insurance), House Rent paid etc., and there can be no second opinion about this, either. But, how many DDOs/AOs/CAOs pay attention to the details furnished. Well, our CAO is certainly does not belong to such sincere category. Last year, from the arrears he made a uniform deduction of 20% in respect of all Gazetted Officers and 10% in the case of others, without bothering himself to see if there were any details furnished by any of the hapless employees. When confronted with the shortcoming, he simply replied (to me) that he did NOT HAVE TIME TO SEE THOSE DETAILS AND HE HAD ACTED AS DEEMED FIT (BY HIMSELF).

    This is not the end of the matter. In the subsequent month (salary for the month of October) he deducted further amount of Rs.5000 from every Gazetted Officer, without realising that in most of the cases, the amount deducted from the arrears exceeded the Tax Liability on the whole income from salary (including arrears). It is a pity that such CAOs exist and survive and there is no accountability at all.
    With regards,
    Badri.

  6. #6
    Senior Member jitendraacr is on a distinguished road
    Join Date
    Sep 2008
    Location
    SRINAGAR (J&K)
    Posts
    566

    Default

    Respected Sir
    I cann't even imagine that such types of DDOs exist. In my department every single pie is counted. They are so kind that they informed telephonically that so and so amount is to be deducted from the salary of a particular month. If deduction somehow exceeds due to any reason, they tried to adjust the amount within that year though not always possible. We are always free to visit them for seeing our salary and deductions and may request them to modify the discrepency if any, from next month.
    Jitendra

  7. #7
    Senior Member badri mannargudi is on a distinguished road
    Join Date
    Sep 2008
    Location
    Surat
    Posts
    283

    Exclamation

    Quote Originally Posted by jitendraacr View Post
    Respected Sir
    I cann't even imagine that such types of DDOs exist. In my department every single pie is counted. They are so kind that they informed telephonically that so and so amount is to be deducted from the salary of a particular month. If deduction somehow exceeds due to any reason, they tried to adjust the amount within that year though not always possible. We are always free to visit them for seeing our salary and deductions and may request them to modify the discrepency if any, from next month.
    Jitendra
    Dear jjee,
    There is a popular saying that we get a government that we deserve. Applying this cardinal principle, I think you have got AO/PAO you deserve and i have got a CAO, I deserve.

    With regards,

    Badri

  8. #8
    Senior Member jitendraacr is on a distinguished road
    Join Date
    Sep 2008
    Location
    SRINAGAR (J&K)
    Posts
    566

    Default

    Respected Shri Badri Sir,
    You definitely deserve the best and not the treatment presently available. But it is the irony that two different department of same govt can functions entirely different. People at dealing seats should be more helpful and friendly.
    with regards
    Jitendra

  9. #9
    Member DoToff is on a distinguished road
    Join Date
    Mar 2009
    Posts
    48

    Question when are we supposed to submit the proof

    Resp Seniors,
    I entirely agree with opinions made earllier that we as employees should be the first to ensure that our intimations towards the savings for the FY should be as earliest as possible.
    However My query is till which month should I be allowed to submit the documents regarding these savings?
    In my case I have submitted the intimation towards savings and deduction in Apr'10( which includes monthly tution fees, principal and interest towards a home loan etc) and my DDO now asks to submit proof of having paid for all these items. I certainly am not in aposition to do so in view of the fact that the EMIs and tution fees etc are being paid each month only.
    seniors, pls advise any rules to support me?
    thanks.

  10. #10
    Senior Member RKPATHAK is an unknown quantity at this point
    Join Date
    Feb 2009
    Location
    Gurgaon
    Posts
    1,019

    Default Tds

    TDS at appropriate rate is to be dedcuted from 60% arrear. Only exception the incumbent may claim rebate under section 89

  11. #11
    Member rakeshmehra30 is on a distinguished road
    Join Date
    Aug 2009
    Posts
    53

    Default

    dear dotoff you must submit the receipt upto the current date to the ddo and give a undertaking for the future investment. i do this every year for my it declaration as some of my insurance policy dues on jan and feb and the proof for declaration is to be given by oct each year so i deposit the receipt of last year and give undertaking to invest.

    rakesh

+ Reply to Thread

Similar Threads

  1. Pay arrear in transfer / deputation
    By SHARONS in forum Arrears
    Replies: 12
    Last Post: 28-01-2009, 10:50 AM
  2. Replies: 0
    Last Post: 06-12-2008, 10:12 AM
  3. Replies: 0
    Last Post: 06-12-2008, 10:11 AM
  4. Replies: 0
    Last Post: 06-12-2008, 10:07 AM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts