Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

TDS ON SALARY FOR PAYROLL EMPLOYEE

omkar (service) (42 Points)

04 October 2007

can anybody tell me how to tds deducted on salary, if he/she is payroll employee ? or for any other person if he or she is on contract basis , but he /she is liable for income tax , ? his /her net income is more than 110000 for male & more than 145000 for female ? then how tds is calculated on salary ? plz tell its urgent ?

Reply
Follow
Share

59 Replies

satynarayan tiwari (Professional) (78 Points)
Replied 04 October 2007

hi friend we think that your deduction of professional tax is not proper and basicaly you don't say about director's salary and your procedure relevent to the professional tax filing with the income tax department is also wrong so first you should clear about director's rumeration then to decided the rate of professional tax and its matter of the Sales tax department and not ot the income tax department

Upgrade to CAclubindia Pro. Subscribe Now!

(Guest)

I Want to Know What is the rate of TDS on Salary

(Guest)

Dear Sir, I want to know The rate of TDS on Employee salary

S.RAVICHANDRAN (FINANCE MANAGER) (422 Points)
Replied 05 October 2007

There is no separate rate of TDS on salary because it is just the tax rate of individulas applicable according to the slab of income. We have to just do the following computation for salary TDS : 1. Calculate the Gross Salary including all prequisites . 2. Obtain the other sources of income , if any, offered by the employee to deduct TDS 3. Arrive at the Gross Total Income 4. Deduct Tax savings investments like LIC,P.F., repayment of housing loan principal etc. 5. Arrive at the Total Income subject to TDS 6. Deduct the basic exemption limit of Rs.110000 and arrive the balance. 7. Upto. Rs.150000, 10% is tax rate and then it is 20 % plus 3% education cess. 8. Now you have arrived the annual TDS to be deducted . Divide the Annual TDS by twelve and deduct montly TDS. If you find one Income Tax Ready Reckoner, the TDS table for the current assessment year 2007-08 would be found.

(Guest)

dear sir, please tell me about that how much deduct tds on salary in on a month or in one year? and how much deduction of parsantage on salary ? thank you ajay kumar

Upgrade to CAclubindia Pro. Subscribe Now!

(Guest)

dear sir, please tell me about that how much deduct tds on salary in on a month or in one year? and how much deduction of parsantage on salary ? thank you ajay kumar

Harikesh (CA Final Student) (31 Points)
Replied 09 October 2007

Dear Sir, I want to know more about Professional Tax, like whom it is applicable for?, what is tax rate, date of deposit, due date for return, which department of government deals with?, etc. Thx in advance.

satynarayan tiwari (Professional) (78 Points)
Replied 09 October 2007

Dear Harikesh Professional Tax on Salary is the related department with under the Sales Tax Department and if employees more than twenty then monthly return to be filed with such department

ravi sankar (Chartered Accountant) (157 Points)
Replied 10 October 2007

Dear S.tiwari, Omkar was asking about TDS on income tax. why are confusing him about professional tax and sales tax department. pl stay away from such confucious statements since it will scare away the members from exchanging. Even non professionals seem to activly and constructivly engage in usefull discussion and let us all form a good forum to exchange knowledge. hope this will light your lamp

ravi sankar (Chartered Accountant) (157 Points)
Replied 10 October 2007

Dear ajay pl see ravichandrans explanation to calculate the tds rate and amount. TDS on salary is not a one time affair to be done for any one month. this should be uniformly done for all twelve months and should be equal for all months as for as possible.