What is Rate of TDS for F.Y 2008-09?

While calculating taxable income, can i subtract the bond money repayed to my previous employer?

• In FY 2007-08 i worked with two employers. With my first employer i worked for 5 months and i got 1.7Lakh as salary, but while resigning , since i had a bond with that company i repayed the bond money worth 4 lakh rupees. While calculating taxable income can i show the bond money repayed to my previous employer? So that i will have less tax burden? I have bank receipt for the repayment. Please help. If i have to pay any additional income tax, (apart from TDS) if i pay before july 31, do i need to pay with interest? If yes what is the rate of interest?

• Answer:

  Gentleman - your question is not fully explained - so you may or may not get correct answer. First of all there is no word "repayed" in English language, however, seems you trying to write as "repaid". Understanding is that you earned Rs. 1.7 Lakh as salaries from previous employer and on your resignation you have to pay Rs. 4 Lakhs to obey the agreement (for you it is bond) as fine or penalty to get seperated before agreed duration of service in order to join the next employer. Now your basic question is if Rs. 4 Lakhs your expenses deductible from salaries income. No. Rs. four lakh paid is your expenses but not deductible from salaries for income tax purpose. You have to pay income tax on Rs. 17 lakh plus salaries received from next employer till 31.3.2008. Calculate the taxable income and Tax Liability. Adjust TDS and pay the balance. You need to pay interest @ 12% p.a. on the balance tax payable. The last date for filing Return on Form ! (salaries and interest income) is 31st July.