Deductions on salary

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Querist : Anonymous

Querist : Anonymous (Querist)

13 October 2011 Sir,

1)if the salary of a person is Rs 35000/- wat r the deduction and how much amout to be deducted? As per my knowledge PT is 200, IT is 4,20,000-1,80,000=2,40,000 x 10% = 24,000/12=2,000.00, is this correct?
kindly let me know any other deductions? kindly let me know PF calculation.

2) we had designed a photo realistic computer Prospective of our project, and designer has charged Rs. 35,000/-lum sum amount for that and mentioned that service charge is not applicable, i hav not deducted TDS for that? kindly advice me on this issue urgently

CA SUMiT PATWARi

CA SUMiT PATWARi (Expert)

13 October 2011 1) This is okay. Other deductions possible is contribution to Provident fund etc.
2) Designers fees of Rs 35000 is in the nature of professional services.
Deduct tds @10% u/s 194J as the payment exceeds Rs30000

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CMA Ashutosh Kumar Gupta

CMA Ashutosh Kumar Gupta (Expert)

13 October 2011 (1) Please refer to CBDT circular No.05/2011 of dated 16august 2011 to have a complete information and procedure. EPF is @12% of basic.
(2)Failure to deduct or remit TDS (full or part)
Interest:Interest @12% p.a. from the date onwhich tax was deductible /collectible to the date of payment to
Government Account is chargeable.
Futhere, rigorous
imprisonment ranging from 3 months to 7 years and fine can be levied.

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Preeti (9971144895)

Preeti (9971144895) (Expert)

13 October 2011 Dear Mr. Raj,

i think that you have to bifurcate your 35000 salary into basis, hra, conveyance allowance, medical reimbursement for tax saving purpose. then your tax will be reduced automatically.

Thanx & Best Regards,
Preeti Rajput
9015098149

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