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TDS calcultaion of salaried persons

exec_accts Started The Discussion:

Hi Seniors,

I am fresher in this field. I requie your help in calculating TDS for the employees. Pls guide me thru the calculation and the method of calculation. One more thing is the TDS calculated on the gross earning for the month. Say if a person has worked for 27 days in a month so would the TDS be calculated for earning of that month or on his CTC per month.

Awaiting your earliest reply.

Thanks n Regards,
Prabha

on amount which he will actually recieved for whole year Tds Is a deemed tax calculated one the basis of total expected earning (Net) not gross

Hi Prabha,

the following example will clear your quarries:

If an employee earns Rs 20,000 per month then his annual salary/package will be Rs 2,40,000. TDS will be calculated on Rs 2,40,000 after deducting- Leaves taken; Savings u/s 80c and other sections; allowances if any given in the salary. Bonus is always added to the salary if any.

Now coming to the slab,

Upto Rs 1,60,000 (males)/ Rs 1,90,000(females)----NIL tax
from Rs 1,60,001 up till Rs 5,00,000--------Rs 8000 i.e (Rs 2,40,000- Rs1,60,000=80,000*10%).
Add: education cess 3%------- Rs 8240 (Rs 8000+3%)

now,
Total tax is Rs 8,240 for the year.
TDS per month will be----Rs 8240 divided by 12(months)= Rs 686.67 per month to be deducted from salary of the employee each month.

Hope this clears your quarries.
Do let me know if the above information is useful to you.

shrinivask - 
Hi gaurav

you have given an example its vry impressing me and its very good to know in easy way thanks a lot
and i wish you u give so many examples like this in t d s

awaiting for ur positive answers for the tds

thanks & regards

srinivas

srikanth63 - 
Go to ynitya dot com There is a tax calculator there which is the very best for Salaries imp

shrinivask - 
Hi Gaurav I know that are related to TDS but there is some formulas so how to use in the form 16 and how to deduct from the income tax of our salary

unechast - 
hi friends i need some help how can a person get all details of his tax deducted that is tds

khushhall - 
Hello, is it possible to deduct the TDS on salary per month. if it is, then can the surcharge can be charged on TDS.

Sudha S - Contributing Member
Hi Gaurav

Could you please clarify my doubt u/s 80G. one of our staff's income details as under.

Net taxable income (After deductions made under HRA, medical, sec 80c ) =Rs 8,14,593/-. If he donates Rs 1 lakh to a private charitable trust. How much would be tax exempted. what would be the net taxable income.

Hope you will clarify the doubt

Thanks
Sudha S

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