TDS on salary

Kumar Gaurav (Going...to be C.A soon...)   (1624 Points)

29 January 2009  

Hi,,,,,

If a employee (MALE) joins our company in may-08. And we provide the following salary.

Basic-16000 p.m

HRA-  4500 p.m

Trpt. allowance-800 p.m

spc. allowance- 4500 pm

Means total salary will be given 25,800/- p.m

means i have to calculate for 11 months salary (from may to march 09) assuming that the employee will do his job since March-09.even if i calculate the TDS on salary on 31 jan 09.

means Basic salary will b  176000/-

HRA                                          49500/- (No rent paid by employee so fullt taxable)

Trpt. allownce                         8800/-

Spc. allownce                          49500/-

less: exemption Trpt. allownce-8800/-

Net salry income will b     Rs. 275000/-

less : ded u/s 80 c     PPF         55000/-   (5000/- paid by employer in PPF)

Life insurance premium paid   25000/-  

ULIP                                                10000/-

Children tution fees                     5000/-

Taxable salary will b           Rs. 180000/-    

Tax will be caluclated on 180000/- & tax amount would be 3,090/-

and 3090/11=281/- will be deducted from every month from his salary ?????

and the company has not deducted ant TDS before, means from May 08 to jan 09 (9 months*281/-)= 2529/- will be deducted from his salary in the same month salary (ie: Feb month) or not?????????

And also why the company has not deducted TDS in the month of May-08 when employee joins the company. Is that because of 150000/- limit or not????

 

Please clarify me all the above ponits ........

I shall be very thankful to you.............................