Suppose that the income chargeable under the head “salaries” of a male employee below sixty years of age for the year inclusive of all perquisites is Rs.4,50,000/-, out of which, Rs.50,000/- is on account of non-monetary perquisites and the employer opts to pay the tax on such perquisites as per the provisions discussed in para 3.2 above.
Income Chargeable under the head “Salaries” inclusive of all perquisites: Rs. 4,50,000 Tax on Total Salaries(including Cess): Rs. 27,810 Average Rate of Tax [(27,810/4,50,000) × 100]: 6.18% Tax payable on Rs.50,000 = (6.18% of 50,000): Rs. 3,090 Amount required to be deposited each month: Rs. 260(257.5) (3090/12) TDS ON DIRECTOR SALARY IS DEDUCTED U/S192& SITTING FEES & COMMISSION IS DEDUCTED U/S 194J.