Tds on salary

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 August 2014 Dear Sir ,

What is the % of TDS on Salary when Employee Earning Between Rs.25000 - 30000 Monthly when he having PAN Card Number .

Kindly Explain........

CA Devanand Jethanandani

CA Devanand Jethanandani (Expert)
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23 August 2014 Dear Friend,

There is not a fixed % of TDS to be deducted from salary.

TDS is to be deducted from salary as per slab rates applicable to each employee.

Work out TDS on salary as under,

Gross salary XXXX
Less: Exempted allowances XXXX
(i.e. transport allowance,HRA
etc.)
Less: Deduction under chapter VI XXXX
=Net taxable salary XXXX

If net taxable salary does not exceed basic exemption limit then no TDS.

If it is above basic exemption limit (i.e. 3 lacs for sr. citizen, and 2.5 lacs for others) then calculate tax thereon (in present case it will be 10%)

From this tax amount deduct rebate u/s. 87 A (Rs.2000 or tax whichever is lower) on balance amount if any add edu. cess @ 3%
the resulting figure will be total TDS to be deducted during the financial year.