TDS on Salary

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Rajeev Ranjan (Querist)
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29 December 2009 Dear All,

If we pay Rs40,000=00 pm salary to a female staff. How much TDS is deducted from her salary

Please explain with calculation...

Bhavesh

Bhavesh (Expert)
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29 December 2009 Take the bare act and ready reckoner and calculate it

CMA. Dinesh S Adhikari, ACMA

CMA. Dinesh S Adhikari, ACMA (Expert)
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30 December 2009 Hiii

Suppose Rs. 40,000 are all taxable amount then computation will be as follow:

40,000*12 = 4,80,000

Taxable Income = upto 1,90,000 = NIL
next 1,10,000 = 10% = 1,10,000*10%
Rest 1,90,000 = 20% = 1,80,000*20%

Therefore, Tax amount = 1,10,000*10%+1,90,000*20%
= 11,000+36,000
= 47,000

Avg. Tax Rate = 47,000/4,80,000
= 9.79167%

Therefore, Every Month TDS will be:

= 40,000 * 9.79167%
MONTHLY TDS = Rs. 3916.676

Please NOTE:
1) Take care of EC & SHEC
2) Please deduct if there is any Exemption and Deduction. Above computation is on assumption that She is not getting any exemption and Deduction under any section of Income Tax Rules, 1961.

Regards!!!
Dinesh S. Adhikari

Rajeev Ranjan

Rajeev Ranjan (Querist)
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30 December 2009 Thank You Dinesh Sir,

If her salary breakup as follow...

Basic 22500=00
HRA 11250=00
Conveyance 1250=00
Other 5000=00

Kindly brief if we give all possiable deducation as per Income Tax Act.

Then what is the TDS amount.

Regards

Rajeev

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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30 December 2009 Basic taxable= 22500x12
HRA as per exemption calculation
Conveyance = Rs.1250- 800 = 450 x12 Taxable
Other =5000x12 taxable

CMA. Dinesh S Adhikari, ACMA

CMA. Dinesh S Adhikari, ACMA (Expert)
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31 December 2009 Hiii... Mr. Ranjan...

IN that case it will be as follow:

1) Basic [Fully Taxable] = 22500*12

2) HRA [Taxable according u/s 10(13A)]= Taxable HRA*12

3) Conveyance[not taxable upto Official purpose, suppose all used for official purpose therefore not taxale] = 0*12

4) Others = 5000*12

Now, Add all above four points and compute taxable salary, as given earlier...

Dear Ramesh Deduction of Rs. 800 pm is available for Transport Allowance not for Conveyance Allowance.....Thanks

Regards!!!
Dinesh S. Adhikari

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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31 December 2009 I do agree Mr.Dinesh Conveyance Allowance is used for the purpose of offical exempted and trasnportation ( which is covered the office to residence and residence to office only Rs.800 exempted)