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urgent tds on salary

11 December 2010

i want to know that salary of a person is Rs. 20,000 per month . now i want to deduct tds on their salary , on which amount i will deduct their tds.

1. over and above their total annual salary above 1,60,000 ( we take its individual below 65 years) like 20000*12=2,40,000

240,000-160,000= on 80,000( 80000*10% = 8000)

2. 10% of 20,000 per month 2000 per month plus Ec &SHEc

or anything else

plz reply me early

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8 Replies

Tanu (Accountant) (767 Points)
Replied 11 December 2010

Dear Deepak, deduct monthly considering any tax saving investment made or proposed to make.

If no deduction is to be made deduct (8240/12) per month.

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B. Umapathy (student) (405 Points)
Replied 11 December 2010

Tds to be deducted on Rs. 80, 000/- @ 10%.

However consider the following

1. If the employee has income from any other sources(i.e. House property, Other sources ect.)

2. Any deduction u/s 80 C to 80 U.

CA Deepak Bhardwaj (Job) (116 Points)
Replied 11 December 2010

thank u so much both of u

CA PARAS BAFNA (Practising CA ) (33423 Points)
Replied 11 December 2010

For TDS on salary , employee's Total Income is estimated beforehand in the month of April or May. For estimating Total Income you can Deduct the eligible investment for Deduction Under Chapter VIA, House Property Interest etc from his Gross total Income .

On such estimated Total Income suppose tax payable is say12000/ then it should be paid likeon 1000 monthly basis before the 7th of the next month in which salary is being paid. If some lesser deduction has been made earlier you can deduct and pay in the next months also.

You need not to deduct Rs. 2000/ per month as such.

For practical conveniency deduct always on higher side so that the net result at year end comes as Amount Refundable by the department.

(Guest)

Originally posted by : Paras Bafna
	For TDS on salary , employee's Total Income is estimated beforehand in the month of April or May. For estimating Total Income you can Deduct the eligible investment for Deduction Under Chapter VIA, House Property Interest etc from his Gross total Income . On such estimated Total Income suppose tax payable is say12000/ then it should be paid likeon 1000 monthly basis before the 7th of the next month in which salary is being paid. If some lesser deduction has been made earlier you can deduct and pay in the next months also. You need not to deduct Rs. 2000/ per month as such. For practical conveniency deduct always on higher side so that the net result at year end comes as Amount Refundable by the department.

Consider any income and deduction u/s 80C, 80D etc.

And you are not allowed ro deduct TDS of Rs.2000 per month

bcoz actual liability is only Rs.8,240 so how can you deduct 200% more then tax liability

Your motive is actual tax paid in Income Tax Deptt. noting to be wrong.

Regards

Rahul Sharma

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CS LLB Pulkit Gupta (https://www.facebook.com/pages/Life-and-Promises/553962034682487) (16631 Points)
Replied 12 December 2010

Originally posted by : B. Umapathy PCC
	Tds to be deducted on Rs. 80, 000/- @ 10%. However consider the following 1. If the employee has income from any other sources(i.e. House property, Other sources ect.) 2. Any deduction u/s 80 C to 80 U.