% of tds deducted by company for employee

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 August 2011 Hello Sir,

I am sandeep Working as a Sr. Software engineer in Company.My annual salary is 5.4 lacks.
I want to know how much monthly TDS my company deduct from my salary.My company's CA told that it will be 10% of my monthely salary Please provide me a suggestion.

Thanks

VISHRUT

VISHRUT (Expert)
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27 August 2011 IF YOU DO NOT GOING TO MAKE ANY INVESTEMNT ELIGIBLE FOR SECTION 80C,80D OR 80ccf or any such other allowable deductions than you will fall under category of tax @ 20% on Rs. 40,000 and tax @ 10% on Rs. 3,20,000( Here it is assumed that you have no bifurcation of salary into taxfree allownaces )
so total TDS will come to Rs. 40,000 so monthly tds should be Rs. 3,333/- approx which will be come to 7% of your monthly slary of Rs. 45,000/- ( 5,40,000/12)

So you company is deducting higher tds of Rs. 4,500/- in place of Rs. 3,333/-

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Querist : Anonymous

Querist : Anonymous (Querist)

29 August 2011 @ Vishrut , Thanks Sir for your reply .

My investment is as following

1. Rs. 2800(L.I.C.) PA
2. Rs. 5100 (Health Insurance) annual
3. Rs. 1,20,000 (Home rent) annual
4. Rs. 6000 child school fees annual
And i am planning some investment also as following
1. Health insurance for Parents -Rs 10000.
2. Investment in SIP 5000 per month

Now please suggest me about my tax.Will home rent include in investment or not?

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VISHRUT

VISHRUT (Expert)
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29 August 2011 No
Home rent will not be included in the investement but you can gain benifit of HRA if you do not own any home in the area of your work.

And now your tax will be approx Rs. 34,000/- and hence your monthly deduction will be re. 2900/- ( Approx. )