TDS
This query is : Resolved
12 June 2009
Can any one please help me understand how to calculate TDS on salary? Please explain with an illustration
chetan soni
(Expert)
12 June 2009
Lets considered example, my salary is 5L pa.
Salary structure is
Basic Rs. 200000
HRA (40% of basic) Rs. 80000
Conveyance allowances Rs. 9600
Special allowances Rs. 210400.00
Total Rs. 500000.
Now tax calculations
Total salary Rs. 500000.00
Less : Exemption u/s 10
1. Conveyance allowance Rs. 9600
(as per 800 per month)
2. HRA Rs. 80000.00
(if he gives rent receipt of 8333 per month)
Balance salary Rs. 410400.00
Less :
1. Professional tax Rs. 2500.00
(for maharashtra)
2. Investments u/s 80C Rs. 100000.00
(considered full)
Net balance salary Rs. 307900.00
Tax on avove
For Men employee Rs. 16580
For women employee Rs. 13580.00
Add: Education cess @ 3% to tax amount. You will get the total tax liability.
Salary structure is
Basic Rs. 200000
HRA (40% of basic) Rs. 80000
Conveyance allowances Rs. 9600
Special allowances Rs. 210400.00
Total Rs. 500000.
Now tax calculations
Total salary Rs. 500000.00
Less : Exemption u/s 10
1. Conveyance allowance Rs. 9600
(as per 800 per month)
2. HRA Rs. 80000.00
(if he gives rent receipt of 8333 per month)
Balance salary Rs. 410400.00
Less :
1. Professional tax Rs. 2500.00
(for maharashtra)
2. Investments u/s 80C Rs. 100000.00
(considered full)
Net balance salary Rs. 307900.00
Tax on avove
For Men employee Rs. 16580
For women employee Rs. 13580.00
Add: Education cess @ 3% to tax amount. You will get the total tax liability.
Message likes :
1 times
13 June 2009
very well explained by shri chetan
13 June 2009
Sir, thank you for assisting me. But Sir, I would like to know how is TDS (the Tax to be Deducted at Source is to be calculated for the respective due dates. Can you please explain that part?
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