Gaurav Kashyap
Finance Executive

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Dear Sir, Please let me know TDS on salary code & under what section & on what basis it should be deducted
From India , Mumbai

For calculating TDS, refer to the following example in case of a male:

Gross Salary- Rs 25,000 ( Basic- Rs 16,429; HRA- Rs 6,571; conveyance allowance- Rs 800; Medical allowance- Rs 1200). This depends on the salary breakup your company is providing to employees.

now; Rs 2,76,000 i.e 23,000*12 will be taxable (Allowances are not taxable).
HRA deduction is given on the minimum value/amount of 3 conditions only if house rent is paid:
1. Actual HRA received.
2. Rent paid- 10% total Basic.
3. 40% of total Basic/50% of total basic if person living in Delhi, Calcutta, Mumbai, madras.

Now; Rs 2,76,000 less HRA Rs 58,000 (suppose)= Rs 2,18,000.

now; coming in slab-

upto Rs 1,60,000--------NIL Tax (Rs 2,18,000- Rs 1,60,000= Rs 58,000)
From Rs 1,60,000 to 5,00,000----10% (Rs 58,000*10/100= Rs 5,800)
ADD education cess3% (Rs 5,800+3%= Rs 5,974)

Hence total tax is Rs 5,974 divided by 12= Rs 498 apprx.
Therefore TDS is Rs 498 per month.


From India , Chandigarh
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