Gross Total Income (on estimated basis) Less: Deductions u/c VI A Total Income Tax on slab rate on normal income Tax on Flat rates on LTCG, 111A etc. Add Edu. Cess
Total Tax less:TDS deducted Less:Tax paid u/s 140A (self assessment) Less:Rebate if any
if Net tax is greater than Rs. 10,000 then divide the whole amount by 4 or 3 installments depending upon the type of assesse and pay the same within due dates.
Estimated Net Salary (after deducting exempt parts like exempt allowances, professional tax etc.) House property income as informed by the employee Other income as informed by the employee
GTI Less: Deductions u/c VI A like 80C investments made by the employee as he informed
Total Income if its more than the exemption limit then calculate total tax then divide it by 12 and deduct it from the salary of the employe and deposit the same. and you can adjust in the last month if there is any fluctuation in the acutal income from the estimated one.
Employer is under obligation to deduct TDS from salary of employee but its not under obligation to verify the details of other income or investments given by the employee but it should take reasonable actions to ensure the data provided is correct.
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