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
22nd March 2017 From India, Delhi
Tax Deducted at Source or TDS is a type of tax that is deducted from an individual’s income on a periodical or occasional basis. TDS can be applicable for income that are regular as well as irregular in nature. Income Tax Act, 1961 regulates TDS in India through Central Board of Direct taxes (CBDT) under the Indian Revenue Services (IRS). TDS rule directs the payee or employer to deduct a certain amount of tax before making full payment to the receiver. TDS is applicable for salary, commission, professional fees, interest, rent, etc.
Salary (month) 40,000 (all in Rs.)
Basic Pay 20,000
IT Declarations/Year 12,000
Profession Tax 200
Net Amount 37842.50
26th September 2019 From India,