how to deduct tds on salary
what it's rate ?? with example
SUSHIL KUMAR (STUDENT) (47 Points)
08 January 2011how to deduct tds on salary
what it's rate ?? with example
Pankaj Arora
(Learner)
(3134 Points)
Replied 08 January 2011
SLAB RATES:
upto 160000 -Nil
160000 to 500000 10%
500000 to 800000 20%
800000 and above 30%
Suppose your income is 4.00 lacs per annum than u comes under 10 % tax category.
400000-160000 = 240000 less if any deduction u/s 80c .
Suppose also that u have investment u/s 80 c amt. 50000/-
Now calculate tax on balance amt. 240000-50000=190000
Calculation of tax:
190000-160000 = 30000*10=3000(tax)
3000*3=90(E.Cess & she cess)
Tax liability will be 3000+90=3090
For deduction tds u/s 192 on salary first u have to calculate assess tax liability and after calculating it divide by 12(no. of months) hence tds deduction will be3090/12 = 258 per month
CA Chirag Haraniya
(Chartered Accountant)
(902 Points)
Replied 08 January 2011
For deduction of TDS u/s 192 u will have to calculate tax liabiltiy as normal...... after that whatevr liability comes divide by 12 and deduct same each month....... If assessee gives any further details then make adjustment accordingly nd calculate liabilty again and deduct after such adjustments..
Deepak Tapse
(Accounts Manager - Taxation)
(1771 Points)
Replied 08 January 2011
Agree with Mr Pankaj and Chirag
S Sivasalapathy
(Job)
(262 Points)
Replied 08 January 2011
You can use the following link
/share_files/salary-tds-calculator-ay-2011-12-33580.asp
Dhruv
(Chartered Accountant)
(308 Points)
Replied 09 January 2011
What if say I've declared a 80C investment to my employer as Rs. 50,000, and TDS is being deducted after deducting that from my gross taxable income on a monthly basis, and later on I've made more investments under 80C, say Rs.20,000 in the middle of the year.
How will the TDS be deducted in the remaining months ?
Pankaj Arora
(Learner)
(3134 Points)
Replied 10 January 2011
After new investment u have to inform you employer and they will estimate your income again and after estimating income they will deduct tds accordingly if they already have deducted excess tds than you will have to file your return and get refund.
VIKAS BANSAL
(executive)
(27 Points)
Replied 10 January 2011
Dear Pankaj,
There is a mistake in tax calculation on Tds on salary amounted rs 3000/-on the income of Rs.400000/-,It may be rs.19000/- after deduction u\s 80c of rs.50000/-please calculate again and rectify the error.
Pankaj Arora
(Learner)
(3134 Points)
Replied 10 January 2011
SLAB RATES:
upto 160000 -Nil
160000 to 500000 10%
500000 to 800000 20%
800000 and above 30%
Suppose your income is 4.00 lacs per annum than u comes under 10 % tax category.
400000-160000 = 240000 less if any deduction u/s 80c .
Suppose also that u have investment u/s 80 c amt. 50000/-
Now calculate tax on balance amt. 240000-50000=190000
Calculation of tax:
190000-160000 = 30000*10=3000(tax)
3000*3=90(E.Cess & she cess)
Tax liability will be 3000+90=3090
For deduction tds u/s 192 on salary first u have to calculate assess tax liability and after calculating it divide by 12(no. of months) hence tds deduction will be3090/12 = 258 per month
VIKAS BANSAL
(executive)
(27 Points)
Replied 11 January 2011
dear pankaj u deducted rs.160000/- twice please check
(400000-160000)=240000
deductionu\s 80 c =50000/-
net income 240000-50000=190000
then 10% of 190000 is rs.19000/- which is tax liabilty - 3% cess- edu.cess
Pankaj Arora
(Learner)
(3134 Points)
Replied 11 January 2011
But y don’t u see tax calculation. I have specially highlighted aboive.
siva thunder
(article student)
(253 Points)
Replied 02 May 2011
pankaj sir for the purpouse of tds gross salary or net is to be to be taken
Gourav Rathore
(Analyst)
(26 Points)
Replied 11 July 2011
Yes I Agree with Vikas Bansal,
Mr. Pankaj deducted 160000 twice in calculation of TDS.