Tds deduction

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KANAV SINGH (Querist)
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30 May 2014 Hi i want to know 1 of my employee earned from professional services 3,77,127 & Tds Deducted 37,713, Tds Professional 10%. Income from Salary from our Company is 1,99,294. Total income for the year 5,76,421.
But for 1,99,294 Tax will be deductable or not.

CA Mandeep Singh

CA Mandeep Singh (Expert)
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30 May 2014 TDS has to be calculated at the average rate of income-tax computed on the basis of the rates in force for the relevant financial year in which the payment is made, on the estimated total income of the assessee.i.e you will consider professional fees rs. 377127 and Salary Rs. 37713, so total income Rs. 576421, e.g if above income is for f.y. 2013-14 and employee is not senior citizen.then tds can be calculated as follows:
Gross Total Income Rs. 576421
(-) Deductions ----
Total Income Rs. 576421
Tax on First Rs. 200000 Nil
On next (500000-200000)@10% Rs. 30000
on Next (576421-500000)@20% RS. 15284
TAX RS.45284
ED.CESS@3% RS. 1359
TOTAL TAX RS. 46643
- TDS RS. 37713
NET TDS TO BE DEDUCTED RS. 8930

Rupesh Jain

Rupesh Jain (Expert)
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31 May 2014 if your employee declare his other income then you have to deducted the tax after considering the other income with salary and deduct the averge monthly tax
it is total tax/no of month= monthly tax to be deducted by you.

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KANAV SINGH

KANAV SINGH (Querist)
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02 June 2014 thanks for valuable answer