our one staff is paid salary 23000.00 per month should i deduct the tds if yes please say me the rate and the accounting entry in the books i am paying him 23000 from april to feb and jv will be passed for march salary 23000*12=276000.00
aslo say the interest rate for late payment for tds
21 March 2009
TDS on salary is deducted on average basis. TDS is calculated as tax computation made for an individual as per slab rate for the concerned assessment year, and then that tax amount is devided into 12 months and TDS is deducted on monthly basis.
To get the minimum tax on salary, salary is being devided into allowance out of which some are totally exempted from tax and some are partially. You need to make salary structure for this.
Interest on late payment of TDS is 1% per month.
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