25 May 2012
at what rates tds should be cut on the remuneration to employees and directors ???
the directors draw a remuneration on only 2L however due to there other incomes from other personal businesses go upto 30% slab rates !! so should we also cut the tds asper 30% slab rate ????
Suppose that the income chargeable under the head “salaries” of a male employee below sixty years of age for the year inclusive of all perquisites is Rs.4,50,000/-, out of which, Rs.50,000/- is on account of non-monetary perquisites and the employer opts to pay the tax on such perquisites as per the provisions discussed in para 3.2 above.
STEPS:
Income Chargeable under the head “Salaries” inclusive of all perquisites: Rs. 4,50,000 Tax on Total Salaries(including Cess): Rs. 27,810 Average Rate of Tax [(27,810/4,50,000) × 100]: 6.18% Tax payable on Rs.50,000 = (6.18% of 50,000): Rs. 3,090 Amount required to be deposited each month: Rs. 260(257.5) (3090/12) TDS ON DIRECTOR SALARY IS DEDUCTED U/S192& SITTING FEES & COMMISSION IS DEDUCTED U/S 194J.
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