TDS on Salary

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

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..

Agree with Mr Pankaj and Chirag

You can use the following link

/share_files/salary-tds-calculator-ay-2011-12-33580.asp

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 ?

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.

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.

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

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

But y don’t u see tax calculation.  I have specially highlighted aboive.

pankaj sir for the purpouse of tds gross salary or net is to be to be taken

Yes I Agree with Vikas Bansal,

Mr. Pankaj deducted 160000 twice in calculation of TDS.