vinayak c. chavan (CPT passed) (1011 Points)
04 February 2013What should included or excluded while calculating TDS on salary of an employee of Pvt ltd co. from Following heads:
1)Basic Salary 2) Conveyance Allowance 3)Diwali bonus 4) Variable Pay 5) paid leave 6) Profession tax
For directors of company is their any change while calculating TDS on salary?
Devendra
(Chartered Accountant)
(4775 Points)
Replied 04 February 2013
Basic pay, Diwali Bonus, Variable pay and paid leave shall be taxable, whereas the conveyance allowance (limit Rs. 9600 p.a.) and Profession Tax (limit Rs. 2500 p.a.) shall be deducted while calculating income chargeable under the head salaries.
Regards,
Devendra Kulkarni
Sagar Devani
(Corporate and International Taxation)
(1174 Points)
Replied 04 February 2013
While calcultaing TDS on Salary all the items which are taxable are to be included. Hence, all the following items should be included while calculating TDS on Salary:
1)Basic Salary
2) Conveyance Allowance (deduct upto Rs.9,600 p.a)
3)Diwali bonus
4) Variable Pay
5) Paid Leave
6) Profession tax (deduct upto Rs.2,400 p.a.)
Sagar Devani
(Corporate and International Taxation)
(1174 Points)
Replied 04 February 2013
And no there are no seperate rule for directors.
@VaibhavJ
(Believe!! Live your dreams!)
(33516 Points)
Replied 04 February 2013
Hey
Refer this link : Salary its Meaning & TDS on Salary
You will get most of your query solved there..
Thanks!!
CAclubindia
