How can we calculate tax liability on salary to pay tds

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varma2233 (Querist)
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09 December 2014 how can we calculate tax liability on salary
for pay tds on behalf of employee every month estimated
please give an explanation

tanking you

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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09 December 2014 1. Compute the Estimated Taxable Income of the employee for the whole year after providing all exemptions (HRA,etc.) & deductions (80C, 80D, etc.)

2. Compute the tax liability on the above income.

3. TDS per month shall be total tax liability/number of months

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@VaibhavJ

@VaibhavJ (Expert)
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09 December 2014 Hi

Check this for explanation.

https://www.caclubindia.com/articles/what-is-salary-how-to-calculate-tds-on-salary-16151.asp

Thanks

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Rupesh Jain

Rupesh Jain (Expert)
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09 December 2014 you have to calculate the yearly salary and take investment declaration form from employee then you calculate the net tax liability and divide the tax with remaining month and deduct the TDS per month.