QUERIES
Dear All,
I need your help.
I would like to know that what is TDS and the monthly deduction of TDS based on my salary.
BASIC : 16,800.00
HRA : 8400.00
LTA : 1400.00
CONVEYANCE : 1600.00
CCA : 13,800.00
GRAND TOTAL : 42,000.00
YEARLY : 504,000.00
from October,2016 my salary will be per month 42k. So.. I want to know that how much TDS will be deducted from my salary per month.
And how to avoid TDS deduction from my salary per month.
Because, cost per month in the city like Mumbai is huge and I also need to support my family which is based on other city.
Please guide me that how to avoid TDS deduction from my salary per month.
Thanks in advance
Anonymous

24th September 2016 From India, Kolkata

The TDS on salary is based on average rate of Income tax. I will explain,The prevailing slab rate of income tax is

Up to 250000. Nil

250000 to 500000 - 10 % by which amount exceeds Rs 250000, that is in your case Rs 250000 x 10 % is chargeable to tax.

500000 to 1000000 - 20 % by which amount exceeds 500000 , that is in your case 4000 is chargeable to tax 20% tax

Total estimate tax payable is 25800.

Now lets calculate average rate of income tax = Estimated tax 25800 x 100 / Total Income = 504000.00 = 5.119 %

So your monthly deduction rate is 5.119 % , that is 42000 x 5.11 % = 2147/ per month.

Learn more here.

Section 192 TDS on Salary rate and computation - Taxin

Now you can reduce the rate by cutting the estimate tax payable. Income tax allow us various deduction of taxable incomes under various section. Just intimate your employer about any one of the deduction allowed below if you really having it.

Deduction Under Section 80 C - basic deductions.

Deduction under section 80TTA - Interest from savings.

Deduction under section 80G - Donation to charity.

Deduction under section 80D - Medical insurance premium.

Deduction under section 80E - Interest on educational loan.
12th December 2016
in the of current rate slabe how to calculate tds and tcs also provide me new rate salab
22nd March 2017 From India, Delhi
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