When computing the amount of tax to be withheld from an employee’s salary, can tax credits under the Ordinance?

raheel t: When computing the amount of tax to be withheld from an employee’s salary, can tax credits under the Ordinance?
When computing the amount of tax to be withheld from an employee’s salary, can tax credits under the Ordinance to which an employee is entitled be taken into account, such as those relating to:

a) Approved donations;
b) Interest on housing loan;
c) Investment in shares; and
d) Contribution to approved pension funds

Further, can the employer reduce the withholding tax for tax paid by the employee with utility bill payments and with payments for motor vehicle token fee?

Answers and Views:

Answer by Bash Limpbutt’s Oozing Cyst©
You withhold tax based upon what the employee put on their Form W-4. It’s up to the employee to take into account donations, mortgage interest, and retirement contributions (outside of your employer’s plan) when completing their W-4.

The only credit that can be considered is the Advanced Earned Income Credit if the employee provides you with a completed Form W-5.

If you offer a retirement plan such as a 401(k) you deduct the employee contributions prior to figuring the tax withholdings.

Utilities have no impact on income taxes, nor do motor vehicle costs. Not sure what you mean by “motor vehicle token fee” but it’s not deductible either.

Answer by tro
on your W-4 you claim the status you are, single, married etc
and how many dependents you claim
and for every $ 3650 of other deductions, like standard or itemized deductions, child credits etc you can claim one more dependent
utility bills and your license fee(only a small part is deductible) do not apply
your donations and mortgage interest will be included in your itemized deductions
the taxable portion of pension funds might apply, but definitely not the pre tax

Answer by Mary Brown
I was browsing through when I saw your question and it will be my pleasure to refer you to where my husband collected a loan last week. The company gave him the loan at an interest rate of 3%, if you are deep in need of a loan you can contact them via email: [email protected] because i know they will help. bye

Answer by Bilal
There are different observations approved donations, interest on housing loan and investment in shares. They are handled in different ways by viewing the rules.
In this case employer can not reduce the withholding tax for tax paid by the employee with utility bill payments and with payments for motor vehicle token fee.