Tds On Salaries

This query is : Resolved

Sandeep Rohatgi (Querist)
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28 November 2008 Sir

One of our staff member is having the following salary receipts for current year 2008-09 ( working period April 08 to 3rd August 08 )

Basic Salary 192000
Medical allowance 3871
Lta 16001
Performance allowance 85471
Other taxable allowance 170632
Leave Encashments 37025
Notice Pay 229657
HRA 96000

Total 830657

The employee has invested Rs 23040 in providend fund account and the rent paid for this period is 60000/-

Kindly advise should we deduct tax and what shall be the amount of Tds

Sandeep

CA Akshat

CA Akshat (Expert)
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28 November 2008 first calculate the tax payable n divide in 12 mths or no of months served u will get the tds to be deducted

CA Tilak Raj Sharma

CA Tilak Raj Sharma (Expert)
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28 November 2008 Details of salary
Basic Salary (50% of Gross Salary) 192000 192000 Fully Taxable
HRA (25% of Gross salary) 96000 55200 As calculated below
Medical Allowance 3871 3871 Fully Taxable
LTA 16001 0 Exempted
Performance All. 85471 85471 Fully Taxable
Leave Encashment 37025 37025 Fully Taxable
Notice Pay 229657 229657 Fully Taxable
Other allowances 170632 170632 Fully Taxable

Total Monthly Salary 830657 773856
Total Salary for the year 773856
Less: Deduction under section 80C to 80U
Net Taxable Salary 773856

Income Tax 137156.8
Add: Surcharge @ 10% 0
Total 137156.8
Add: Education cess @ 2% 2743
Total 139900
Add: Secondary and Higher Education Cess @ 1% 1372
Total Tax 141272

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