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How to calculate tds on salary?

vinayak c. chavan (CPT passed) (1011 Points)

20 December 2012

We are private limited co. One of our female (age 28) employees is getting basic salary of Rs.19500 p.m. How much TDS should I deduct on her salary? Which salary to be considered while calculating TDS i.e. Basic salary or salary received in hand? In her case she is getting approx salary of Rs.17000 every month after deducting her absent in month & professional tax. So should I take Rs.17000 as her salary to calculate Income tax?

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satish kumar voleti (A.C.A., (ICWAI)) (1686 Points)
Replied 20 December 2012

THE BASIC SALARY AS PER YOUR INFORMATION IS RS. 19500/-

in total it will be Rs 234000/- per annum...if you allow conveaynce allowance of RS. 9600/- Mdeicial Allowance Rs. 15000/- HRA around Rs 93600... and PT OF RS 2400/- her taxable salary will be Rs.113400 which is less than the taxable limit.. so no need to deduct TDS.

vinayak c. chavan (CPT passed) (1011 Points)
Replied 20 December 2012

Originally posted by : satish kumar voleti
	THE BASIC SALARY AS PER YOUR INFORMATION IS RS. 19500/- in total it will be Rs 234000/- per annum...if you allow conveaynce allowance of RS. 9600/- Mdeicial Allowance Rs. 15000/- HRA around Rs 93600... and PT OF RS 2400/- her taxable salary will be Rs.113400 which is less than the taxable limit.. so no need to deduct TDS.

She is also getting commission on sales of around Rs.2000-2500 per month. Should I consoider this while calculating TDS? We are paying this amount to her as variable pay i.e. not added this to her basic salary.

Sivaguru SM (Tax Consultant) (235 Points)
Replied 20 December 2012

Even though you add the sales comm to her salary, tds won't attract

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vinayak c. chavan (CPT passed) (1011 Points)
Replied 20 December 2012

Originally posted by : Sivaguru SM
	Even though you add the sales comm to her salary, tds won't attract

Thanks

manoj (student) (5205 Points)
Replied 20 December 2012

(1) The following income shall be chargeable to income-tax under the head "Salaries" :

(a) any salary due from an employer or a former employer to an assessee in the previous year, whether paid or not;

(b) any salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer though not due or before it became due to him.

(c) any arrears of salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer, if not charged to income-tax for any earlier previous year.

(1) The following income shall be chargeable to income-tax under the head "Salaries" : (a) any salary due from an employer or a former employer to an assessee in the previous year, whether paid or not; (b) any salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer though not due or before it became due to him. (c) any arrears of salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer, if not charged to income-tax for any earlier previous year. Any salary, bonus, commission or remuneration, by whatever name called, due to, or received by, a partner of a firm from the firm shall not be regarded as "Salary".

Read more at: /forum/details.asp?mod_id=232049&offset=1#.UNMGy6ztXFk

(1) The following income shall be chargeable to income-tax under the head "Salaries" :

(a) any salary due from an employer or a former employer to an assessee in the previous year, whether paid or not;

(b) any salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer though not due or before it became due to him.

(c) any arrears of salary paid or allowed to him in the previous year by or on behalf of an employer or a former employer, if not charged to income-tax for any earlier previous year.

where any salary paid in advance is included in the total income of any person for any previous year it shall not be included again in the total income of the person when the salary becomes due.

Any salary, bonus, commission or remuneration, by whatever name called, due to, or received by, a partner of a firm from the firm shall not be regarded as "Salary".

CA Rajnik Galani (prctice) (154 Points)
Replied 20 December 2012

Dear,

FOR A TAX CALCULATON BASIC SALARY TAKEN i.e. Rs.234000 p.a.

suppose after deductible allowance even income is taxable in hands of employee than TDS liability arise.

Tds rate not specify by IT Act.

employer deduct tds at amount tax payable by employee.

employer liable to calculate tax libility of employee and employee is liabile to pay tax than employer deduct tds.

i.e. total tax liablilty during year rs.1700 than employer deduct tds every year rs.141.66

manoj kumar (student) (41 Points)
Replied 21 December 2012

Mr. Vinayak

You will have to give complete break up of her salary.information give is incomplete.

Otherwise all give you answer by assuming Convenyace allownace,HRA etc.Due to which answer may be inaccurate.

Simran (Student) (1165 Points)
Replied 28 December 2012

Hi Friends........ I would like to give some suggestions from my side.. hope you would find this information useful and can solve you queries.

Normal Rates of tax:

Sl. No.	Total Income	Rate of tax
1	Where the total income does not exceed Rs. 2,00,000/-.	Nil
2	Where the total income exceeds Rs. 2,00,000 but does not exceed Rs. 5,00,000/-.	10 per cent of the amount by which the total income exceeds Rs. 2,00,000/-
3	Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-.	Rs. 30,000/- plus 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-.
4	Where the total income exceeds Rs. 10,00,000/-.	Rs. 1,30,000/- plus 30 per cent of the amount by which the total inco