Tds on salary
This query is : Resolved
vineet sharma
(Querist)
22 April 2009
i want to know the procedure of calculating tds on salary and can you please explain me with the help of example
Example should include each and every aspect
Example should include each and every aspect
22 April 2009
I am preparing a TDS on salary file shortly. which i will upload soon. Once approved it will displayed in shared file section.
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CA.ViVeK M ACA
(Expert)
22 April 2009
TDS on salary is calaculated on the slab rate as applicable to the individual.
the deduction and allowances as entittled to the individual shall be taken in to account.
Any way the helping hand doing a good work
the deduction and allowances as entittled to the individual shall be taken in to account.
Any way the helping hand doing a good work
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Taranjit Singh
(Expert)
22 April 2009
While making the payment of Salary, deductor should consider the following and deduct correct TDS from the payment being made.
Calculate the annual Approximate/Actual Salary
Calculate the Exact Taxable Salary amount Paid/Payable till current month for the financial year.
Calculate the approximate salary that will be paid for rest of the FY, assuming the current month salary for rest of the year salary.
Add any other income reported by the Assessee [Employee].
Deduct if any Loss declared by the Employee, from the annual taxable salary. Note that, only House property loss (interest in case of Self Occupied House Property) should be considered.
Deduct the allowed deductions declared by employee under Section 80C, 80D, 80G, etc.
Calculate the Income Tax, Surcharge and cess on the net Income, as per the “Rates in Force”
Deduct if any rebate U/s 88E or Relief U/s 89. (explain the heads)
Keeping it as total tax, now deduct the TDS made till last month from it.
Divide the net TDS by “Remaining number of months in the FY, including current month”.
Deduct this amount from employees Salary
Calculate the annual Approximate/Actual Salary
Calculate the Exact Taxable Salary amount Paid/Payable till current month for the financial year.
Calculate the approximate salary that will be paid for rest of the FY, assuming the current month salary for rest of the year salary.
Add any other income reported by the Assessee [Employee].
Deduct if any Loss declared by the Employee, from the annual taxable salary. Note that, only House property loss (interest in case of Self Occupied House Property) should be considered.
Deduct the allowed deductions declared by employee under Section 80C, 80D, 80G, etc.
Calculate the Income Tax, Surcharge and cess on the net Income, as per the “Rates in Force”
Deduct if any rebate U/s 88E or Relief U/s 89. (explain the heads)
Keeping it as total tax, now deduct the TDS made till last month from it.
Divide the net TDS by “Remaining number of months in the FY, including current month”.
Deduct this amount from employees Salary
Taranjit Singh
(Expert)
22 April 2009
If you need more clarification plz ask me via PM.
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