In gross salary there is P.Tax for which deduction is available u/s 16(iii) and PF Contribution of Employer is exempt from tax upto 12%. Only amount in excess of 12% will be taxable. Therefore you have to reduce these amount from salary. If one month salary is received as bonus then you will have to deduct TDS as the amount crosses Rs 1.80 Lacs.
15 December 2011
Better i am giving all details of salary as per salary sheet to know tds deduction exactly should or not
employee - male 38 years basic - 6500.00 fixed DA 2000.00 HRA 4600.00 spl. allowance 4000.00 total 17100/- deductions p.tax 130 PF 1020 net pay 15950/- by cheque