Hello friends, how are you?
Are you enjoying TDS chapter?
In last lecture, we discussed about TDS on Salaries and how
to do it.
Now, let's read some text on it.
Please stay with me on screen.
This was section 192.
192
And this is manner of deduction.
You have to take average rate of income tax.
And what is mean by average rate? Rate arrived by dividing
the amount of income tax calculated on the total income.
Take out income tax and divide it by total income.
Your average rate will appear in front of you.
See, this is a unique case.
For example, you are working in a company for 1 year.
You worked in that company for 3 months.
In 4th month, you left that company and joined another one.
It happens.
It's not a big deal.
In that case, how will TDS be deducted?
We are discussing about it.
What does it say? It says, in case where SSE is
simultaneously employed under more than one employer.
This SSE takes up a job with another employer during the
financial year.
So, what will he do?
He may furnish the detail of salary due year received from
the other employer.
The tax deducted and such other particulars to the current
employer.
Whatever was his salary in previous job, whatever deduction
he had claimed,
whatever TDS was deducted on it, all those details will be
collected by the current employer.
Existing employer will get old details and new details.
Accordingly, he will combine both and deduct TDS.
This is what it says.
Thereupon, subsequent employer,
the new employer, the new company, he should take such
information into consideration and then deduct the tax
remaining payable in respect of the employer's remuneration.
Whatever tax was left to be deducted, that tax will be
deducted.
This is the point.
There is a statement of it.
And the deductions you want to claim, like house rent
allowance,
if you receive HRA, you will have to give some evidence to
your employer that yes, I was living in a rented house.
And I had deposited this much amount of rent.
Should my salary be considered or not?
Name, address, PAN card.
Whose? The owner of the house.
If your annual rent is more than Rs.
1 lakh, if you have availed the facility of leave travel
concession,
then in that case, the expenses you have actually incurred,
if you have actually travelled by air, you will have its
bills.
If you have travelled by rail, you will have its bills.
Go and show that ticket.
Are there any deductions?
Interest deduction for house property.
Do you remember in house property, we used to talk about
interest.
For house property, we used to take interest.
For self-occupied, for let-out, for construction interest,
the loan you have taken, the interest you are paying, show
the proof of that.
Show the PAN card of the person who has taken the loan.
Show the genuine transactions, the proof of which you have.
It is a simple thing.
Are there any deductions? 6A, tuition fees,
LIC premium, etc.
Go and deposit the proof of that.
This was the point on salary.
Is there any fixed rate for TDS?
Was there any fixed rate?
In that case, there was no fixed rate.
According to the average rate, you had to deduct your TDS.
It was a simple point.
Next.
Premature withdrawal from the employee provident fund.
If you remember, there is a provident fund for employees.
I had told you 2-3 stories about it.
There was an old man.
His son was in jail and his daughter was getting married.
What did he do?
He withdrew money from his PF.
If you are withdrawing money from your PF before your
maturity, even in that case, the government says that you
are withdrawing money forcefully.
If you are withdrawing money before your maturity, you will
be liable for TDS.
You will get your money only after deducting your TDS.
What is the condition?
If there is a withdrawal above Rs.
50,000, if there is a withdrawal above Rs.
50,000, in that case, your TDS will be deducted.
What is the rate?
The rate is 10%.
For example, if you withdraw Rs.
1 lakh from your PF account, 10% means Rs.
10,000 will be deducted as income tax.
You will receive only Rs. 90,000.
Rs. 10,000 will be deposited.
When you download your form 26AS, when you download your
form 26AS, when you download your form 26AS, in that,
everything will be shown that in which section TDS has been
deducted, why it has been deducted, at what rate it has
been deducted, and how much it has been deducted.
So, when the actual tax liability comes at the end of the
year, let's say the liability of Rs.
1 lakh comes at the end of the year,
the TDS has already been deducted.
You will say, okay, it is a liability of Rs.
1 lakh, but I have already deposited Rs.
Although I did not deposit it, but someone else, who was
paying me, deposited it on my behalf.
I should have received Rs. 1 lakh.
I did not receive Rs. 1 lakh.
I received Rs. 90,000.
Rs. 10,000 has been deducted.
You can deduct that Rs.
10,000 from my final tax liability.
If you do premature withdrawal from your PF account, in
that case, any income tax, 10% tax will be deducted.
If you deduct up to Rs.
50,000, no income tax will be deducted.
If it is less than Rs.
50,000, nothing will be deducted.
Yes, but if you do not furnish your PAN number, then the
maximum marginal rate which is applicable in the country,
according to that,
is Rs. 10,000.
It is nothing.
It is a 10% rate.
When should it be deducted?
At the time of payment.
When was the salary?
It was at the time of payment.
When was this one?
It was at the time of payment.
It is not like you deduct it when you pass the general
entry.
No.
You should deduct the salary
when you are doing premature withdrawal
PF accounts.
It will be deducted when you actually pay.
On due basis.
If you pass the general entry, it will not be deducted in
that case.
Actual payment should be done in that case.
This was the point.
If you do not furnish your PAN card, then the maximum rate
which is applicable in the country, will be deducted
according to that.
This was the point.
Absorb this.
In the next video,
I will give you more videos of different sections.
So that it is not heavy and it is clear to you.
Since 192A, premature withdrawal from the PF account.
If the withdrawal is up to Rs.
50,000, no TDS will be deducted.
If the withdrawal is more than Rs.
50,000, 10% TDS will be deducted.
This is a simple point.
Who will deduct?
Shall I move ahead?
We will discuss something else in the next video.
Thank you.