Tejas Gandhi (143 Points)
11 April 2019
Debolina Sahu
(student)
(278 Points)
Replied 11 April 2019
For FY 2018-19, If any investment declaration u/s. 80C of amount 60K or more no need to deduct TDS.
For FY 2019-20, no TDS liability for the salary income upto 5.0L
prasad Nilugal
( GST Practitioner & Accounts )
(14801 Points)
Replied 11 April 2019
Your yearly salary is 360000/-
Nil Tax up to 250000/-
Your estimated taxable Income 110000/-
5% Tax on 110000/- 5500/- ( 5% Tax between 250000/- to 500000/- )
so divide 5500/- by 12 months 460/-
Your monthly TDS will be 460 /- per month
Above mention is estimated tax (TDS) on average basis .
please confirm with others also .
Arif Malique
(19 Points)
Replied 11 April 2019
Puja Sharma
(CA)
(433 Points)
Replied 11 April 2019
The rate at which TDS to be deducted on Salary is not fixed. TDS is deducted according to the prevailing Income Tax Rate for that Financial Year.
The rates of Taxes also depends upon the age of the individual. If the person is 60 years or more then there are separate Tax Rates.
The simple formula to calculate tax in your case is:
Total Salary ___________
Less: Exempted allowances of salary ___________
Taxable Salary ____________
Less: Deduction u/sChapter VIA ____________
Total Taxable Income ____________
You can refer to the below link for the prevailing Income Tax Rates.
https://www.incometaxindia.gov.in/Pages/charts-and-tables.aspx
Sarath Chandra
(CA Final Student)
(566 Points)
Replied 11 April 2019
There's is no flat rate of TDS on salaries. Tax has to be calculated estimating for the whole year based on the prevailing slab rates and then divide by 12 to arrive at monthly TDS amount.
For FY 2018-19:
If the employee is below 60 years of age, then the slab rates are as follows:
| Taxable Income | Tax |
| 0 - 2,50,000 | 0 |
| 2,50,001 - 5,00,000 | 5% |
| 5,00,001 - 10,00,000 | 20% + 12,500 |
| 10,00,001 and above | 30% + 1,12,500 |
If taxable income after all deductions under Chapter - VIA is below Rs. 3,50,000, then tax rebate of Rs. 2,500 is available u/s 87A. Otherwise, tax has to be calculated as follows:
Taxable Income = Rs. 3,60,000
| Taxable Income | Tax |
| 0 - 2,50,000 | 0 |
| 2,50,001 - 3,60,000 | 5% |
Tax = (3,60,000 - 2,50,000) x 5% = 1,10,000 x 5% = Rs. 5,500
Tax has to be increased to Health & Education Cess @ 4%
Total Tax = Rs. 5,500 + (4% x 5,500) = Rs. 5,500 + Rs. 220 = Rs. 5,720
TDS to be deducted per month = Rs. 5,720/12 = Rs. 477 (approx.)
For FY 2019-20:
Sec. 87A is amended in FA 2019 by increasing the threshold to Rs. 5,00,000 and rebate to Rs. 12,500. So there will be no tax if income is below Rs. 5,00,000.
CAclubindia
