Tds on salary please reply (Income Tax)

This query is : Resolved

bhavesh

( Author )
02 August 2012

Dear sir,

In our organization, Most of our employees are earning more than 20000/- PM. and now the management has decided to deduct tds every month from salary of employee. Please guide me the detail calculation for tds on salaried employees. what amount to be deduct and pay to IT us 192B. I have to do first time this work.

Please guide.

Thanks in advance.

Amol S. Joglekar.

( Expert )
02 August 2012

the basic exemption is now 200000/- The employee drawing 20000 per month will be getting 240000 per year. If he / she is investing 40000 in any of the 80C investments, the income tax will be nil. I request you to refer some ready reckoner. For any specific query, you may write on amolshankar@gmail.com

bhavesh

( Author )
02 August 2012

Please give me practical answer

Gross Salary Rs.350000 PA
Net Salary Rs.300000 PA

80 C Investment Rs. 60000

What amount of TDS to be deduct PM from Salary.

Please reply.

Amol S. Joglekar.

( Expert )
02 August 2012

gross salary is 350000. less 80C 60000. (Please provide details of 50000) The calculation may get changed. w/o that total income is 290000. tax is 9000. deduct 9000/12 per month.

bhavesh

( Author )
02 August 2012

Details of Rs. 50000

Rs.23800 Employees contribution to pf
Rs.23800 Employer contribution to PF
Rs.2400 Professional tax

Is this make any difference to tax liability ?

Amol S. Joglekar.

( Expert )
02 August 2012

Yes. definitely. 1. Employer's contribution is not considered as salary (Although considered as CTC by the smart HR people)2. employee's contribution will go to 80C investment. So it is included in salary as well as deduction. 3. 2400 is also deductible from salary. (By the way it should be 2500, if in Maharashtra)I request you to please give the break up of gross salary and 80C investments.

bhavesh

( Author )
02 August 2012

Following is break up:

Basic pay : 242320
DA rs.12800
HRA rs.26880
incentives rs.66355
arrears rs.2065

PF Employee rs.23800
employer rs.23800
Professional tax rs.2400

80C invest ment

IN LIC rs.15000
in NSC rs.25000

Thanks for your help

Amol S. Joglekar.

( Expert )
02 August 2012

242320+12800+26800+66355+2065=350340 Less 2400 = 347940 les 80C 23800+15000+25000 i.e.63800 =284140. Tax payable is 8414. Deduct 8414/12 per month.

bhavesh

( Author )
02 August 2012

You give me the perfect solution.

Thanks.

Amol S. Joglekar.

( Expert )
02 August 2012

I request you make it in excel. Your life will be easier. The same is needed at the time of filing TDS returns.

bhavesh

( Author )
02 August 2012

Ok .....i have not filed any return yet, but i will try it