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tax deduction from salary

suresh (accountS ) (158 Points)

21 July 2010

DEAR SIR/MADAM

I GET RS-15200 PM AS SALARY AND I HAVE LIC INVESTMENT ANUALLY 6530P.A{NO GRATUITY;PF;ESIC) QUESTION IS

I FALL UNDER WHICH IT SLAB 1ST / 2ND

WHAT WHAT WILL BE MY NET INCOME(ON HAND)

HOW MUCH %TDS WILL COMPANY DEDUCT WHILE MAKING CHQ

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14 Replies

FATEMA (CHARTERED ACCOUNTANT) (719 Points)
Replied 21 July 2010

Dear Suresh,

Is salary the only income?Dont you have any other income?

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Akhil Gupta (Manager F&A) (856 Points)
Replied 21 July 2010

As per the details given by you the amount of total TDS on salary comes to Rs. 1635/- p.a.

See the attached file for computation.

Attached File : 16 salary tax computation.xls downloaded: 341 times

1 Like

CA Meeta R (CA) (64 Points)
Replied 21 July 2010

Dear Sir,

Whar i understood - what you monthly receive in hand is Rs. 15200/-

So, Annually it comes to Rs. 182400/-

Less Annual LIC Investnment Rs. 6530/-

That means annual net income Rs. 175870/-

so, as per Tax slab for Man - for A.Y. 2011-12:- you fall in between the first slab (10%)

i.e. for income between 160000 to 500000 - 10%

and according to that monthly Rs. 132 would be deducted from your salary.

But if you could able to invest annually around Rs. 16000 more in LIC or PPF or term deposit which are eligible for tax exemption U/s 80 C, then i think no tax will be deducted from your salary....

Thanks...

2 Like

Harpreet (* * * * * *) (1670 Points)
Replied 21 July 2010

Suresh if u dont have any income from any other source like house property, other source, capital gain and business income then you will fall into 160000-300000 slab wo bhi tab if i assume ur employer does not make structure for ur salary like HRA, transport allowance for which u can claim rs.800/- per month exemption, medical allowance for which u can claim rs.1250/- per month. So as per me at presently i can not finalize ur tax liability. Explain ur salary structure first.

1 Like

Kalpesh Chauhan, (Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com)) (8310 Points)
Replied 21 July 2010

175870 is your net income so 160000-300000 slab.

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M. N. JHA (CA) (8316 Points)
Replied 21 July 2010

Income Tax Rates/Slabs for A.Y. (2011-12)

Slab (Rs.)	Tax (Rs.)
less than 1,60,000	Nil
1,60,000 to 5,00,000	(TI – 1,60,000) * 10%
5,00,000 to 8,00,000	34,000 + (TI – 5,00,000) * 20%
Greater than 8,00,000	94,000 + (TI – 8,00,000) * 30%

Women aged 65 years or less

Slab (Rs.)	Tax (Rs.)
less than 1,90,000	Nil
1,90,000 to 5,00,000	(TI – 1,90,000) * 10%
5,00,000 to 8,00,000	31,000 + (TI – 5,00,000) * 20%
Greater than 8,00,000	91,000 + (TI – 8,00,000) * 30%

Senior Citizens (Individuals aged above 65 years)

Slab (Rs.)	Tax (Rs.)
less than 2,40,000	Nil
2,40,000 to 5,00,000	(TI – 2,40,000) * 10%
5,00,000 to 8,00,000	26,000 + (TI – 5,00,000) * 20%
Greater than 8,00,000	86,000 + (TI – 8,00,000) * 30%

No Surcharge but Ed.Cess @ 2% and SHEC @ 1% is applicable.

1 Like

Shudhanshu Agrawal (Business) (2570 Points)
Replied 21 July 2010

You are providing Gross Monthly Income. When providing income for taxation please always specify the components of salary. There are exemption u/s 10 which are available for different components.

Moreover, i think you have asked same question in another forum in which you have mentioned the components of salary and i have given you the solution there.

1 Like

(Guest)

best answer by akhil

CA.G.Muguntha Narayanan (Internal Auditor at TVS Motors) (2195 Points)
Replied 21 July 2010

Dear Suresh,

I think all our friends have given the correct answers above. Ur taxable income would be Rs.175,870/- Tax on the above is Rs.1587/- Edu. cess is Rs.31.74 and Secondary And higher education cess is Rs.15.87. Hence ur total tax would be Rs.1634.61 ie) Rs.1630.

Hence ur monthly deduction would be Rs.135.83

Somshekar (Rankholder) (-) (158 Points)
Replied 21 July 2010

akhil good calculation but you can show the profession tax deduction of 2500/-

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suresh (accountS ) (158 Points)
Replied 22 July 2010

Originally posted by : Shudhanshu Agrawal
	You are providing Gross Monthly Income. When providing income for taxation please always specify the components of salary. There are exemption u/s 10 which are available for different components. Moreover, i think you have asked same question in another forum in which you have mentioned the components of salary and i have given you the solution there.

yes sir you are right and i agree with you

CS Vijay Daxini (At Practice) (732 Points)
Replied 22 July 2010

first disclose u r complete salary structure bsz under terms of employment d.a and dearness pay forms part of basic salary this will minimise tax incidence on hra gratuity pension so its better for u if u disclose u r salary structure then only anybody can reply the way u want reply...........

CA Sumit Arora (CA) (1411 Points)
Replied 22 July 2010

Tax is Rs 1587 if there is no other income. If you would be able to invest Rs. 16000 more then there will be no deduction of TDS from your income.

Sagar Jataniya (Appearing CA Final) (100 Points)
Replied 22 July 2010

I totally agree with Harpreet only.

" Suresh if u dont have any income from any other source like house property, other source, capital gain and business income then you will fall into 160000-300000 slab wo bhi tab if i assume ur employer does not make structure for ur salary like HRA, transport allowance for which u can claim rs.800/- per month exemption, medical allowance for which u can claim rs.1250/- per month. So as per me at presently i can not finalize ur tax liability. Explain ur salary structure first. "