I am paying Salary of Rs.20000 each to 2 employees form April .2011. But till today I have not made TDS.
Now I want to Make the TDS. please Tell me how much to deduct the TDS. Mode of payment through challans i.e., Monthly/Qtry. and about the Filing of Qtrly TDS returns.
29 November 2011
You need to make annual estimate of salary from April to March. Then you need to obtain an investment declaration from the employee. Then you need to calculate income tax payable on such annual salary as per applicable slab after giving benefit of any IT exemption/ deduction available as per his investment declaration.
You can divide the net annual tax payable by 12. You can now deduct the outcome amount of TDS per month from his salary.
Bust since, you have not deducted the TDS till now, so instead of dividing by 12, you need to divide by the number of months remaining in the current FY.
In the month of Feb, you need to ask the employee to submit the actual investment proof. Then you are required to calculate the Tax based on such actual proof & deduct that tax in remaining months equally.
29 November 2011
You need to make annual estimate of salary from April to March. Then you need to obtain an investment declaration from the employee. Then you need to calculate income tax payable on such annual salary as per applicable slab after giving benefit of any IT exemption/ deduction available as per his investment declaration.
You can divide the net annual tax payable by 12. You can now deduct the outcome amount of TDS per month from his salary.
Bust since, you have not deducted the TDS till now, so instead of dividing by 12, you need to divide by the number of months remaining in the current FY.
In the month of Feb, you need to ask the employee to submit the actual investment proof. Then you are required to calculate the Tax based on such actual proof & deduct that tax in remaining months equally.
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