TDS

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Meekha

Meekha (Querist)
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12 June 2009 Can any one please help me understand how to calculate TDS on salary? Please explain with an illustration

chetan soni

chetan soni (Expert)
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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.

Message likes : 1 times

CA. Gurdeep Singh Chawla

CA. Gurdeep Singh Chawla (Expert)
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13 June 2009 very well explained by shri chetan

Meekha

Meekha (Querist)
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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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