11 January 2013
Sir, I am a student-cum-accountant.Please make me understand(with example) how TDS will be deducted from Salary income.I have knowledge but in confusion mood.pls help me.
13 January 2013
while calculating Tds on salary you must ascertain all receipt that employee is going to receive in current financial year (Including Bonus, Incentive, Perquisites etc. )Once you get this figure for every employee your first step is over. For E.g. MR X going to receive Rs 400000/- in year.
Now From Above you shall deduct allowances which are exempt under section 10 of income tax Act for e.g. conveyance allowance, HRA ,Children education allowance to the extent allowable (See respective allowance in income tax book ) You also find out exempted perquisites and deduct it from Gross salary arrived in first step. Now deduct profession Tax. You will get income chargeable under head salary.
Now from above you must deduct deduction allowable under section 80 of income tax act for e.g PPF, LIC, med Insurance refer respective section in Income tax book.
(For deduction under section 80C consider any sum deducted by employer as well as get documents from employee if he has paid it personally )
Now you will get Net taxable income, apply the slab rate and find out amount of total tax. For e.g. its Rs 50,000/- then 50,000/12 = Rs 4167/- deduct from every month salary.
Just help in charging service tax & deducting TDS.My questtion is on House keeping service.
Q.1.whether House keeping service provider should charge ST 12.36% or 3.09% on service provide.Whether it is different in case of Company and non company?
Q.2.whether TDS is deducted by service receiver,before charging service tax amount or after charging service tax amount?
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