09 July 2010
Suppose, taxable salary per month is Rs. 20,000, therefore total taxable salary for the year will be Rs. 2,40,000 and tax on this amount will be Rs. 8,240(including EC & SHEC).
Now, Rs. 8240/240000*100 = 3.43%
Therefore, every month 3.43% of the salary will be deducted from the salary of the employee.
e.g. Rs. 20,000 received in the month of August. So, TDS will be Rs. 20,000*3.43% = Rs. 686.
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