Hi Everybody
PL help me in computing the advance tax for an individual
Suppose my monthly income is 50,000 PM,. means total income 600,000 PA and having investment of 1 lacs in 80 C , so
details
Income from salary - 600,000
Less- 80 C Investment - 100,000
Total Income - 500,000
on above 5 lacs , total tax is 32000 , Pl suggest me now, How & at which rate, company will deduct the TDS & how to compute the advance tax.
TDS will come to 32000/12 months which is equal to 2,667 per month.
If any advance tax is paid then tds will be adjusted accordingly.
The Advance tax calculator is attached below.. For individual its 30% of tax within 15th Sept, next 30% within 15th Dec and the balance tax to be payable within March 15th.
Tax slab of 10% is upto an income of 500000 hence the tax will be Rs.32000 plus Cess of 3 % i.e. Rs.960. So the total tax comes to Rs.32960. TDS by the company will be Rs.2747/- pm. In case of salaried employee no need to pay advance tax unless there is income under some other head. In the above query since the assessee is having only salary income no advance tax is required.
Total Tax for AY 11-12 comes to Rs.32960/-.
TDS will be = 32960/12 = Rs. 2747/- per month.
Advance Tax liability will not be there if the employer is deducting TDS regularily and correctly.
| Originally posted by : Akhil Sharma | ||
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Tax slab of 10% is upto an income of 500000 hence the tax will be 32000 plus Cess of 3 % i.e. 960. So the total tax comes to 32960. TDS by the company will be 2747/- pm. In case of salaried employee no need to pay advance tax unless there is income under some other head. In the above query since the assessee is having only salary income no advance tax is required. |
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| Originally posted by : RITESH KOTHARI | ||
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Total Tax for AY 11-12 comes to 32960/-. TDS will be = 32960/12 =2747/- per month. Advance Tax liability will not be there if the employer is deducting TDS regularily and correctly. |
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Agree with the above. If ur salary is fixed then the above will apply
If ur salary is varying every month then average rate of tax needs to be calculated
pls anyone help me out how to calculate advance tax for firm and company...??pls attach any excel file for its computation..
Mr. Mayur
Take out last year audited financials and then prepare projections for this year and compute at providing for all provisions and depreciation arrive at net income and then apply income tax after checking the sesuctions available if any then compute taax payable from income tax department website using tax calculator
If the salary is varying every month, please any one clarify the TDS to be deducted every month?
Generally based on the Pay roll, Saving Us/80C, Other Loss & Other Income from the Company or employee Disclosed to Employer on that total Income tax will be calculate by the Employer
Payroll
Basic+DA+HRA+LTA+Conveyance+Medical
their is some Exemption provision for HRA, LTA, Con, Medi u/s10
and also Professional Tax will be deducted up to 2400/-
if the employee has house property loss becouse of H Loan Interest that will be deducted from his salary income subject to 1,50,000 or no limit based on the self occupaid & let out
After deducting all this balance will be the taxable income
on that employer has to calculate tax as per slabs applicable to the employee this amount will be deducted 12 months period equally from his salary credit
Generally based on the Pay roll, Saving Us/80C, Other Loss & Other Income from the Company or employee Disclosed to Employer on that total Income tax will be calculate by the Employer
Payroll
Basic+DA+HRA+LTA+Conveyance+Medical
their is some Exemption provision for HRA, LTA, Con, Medi u/s10
and also Professional Tax will be deducted up to 2400/-
if the employee has house property loss becouse of H Loan Interest that will be deducted from his salary income subject to 1,50,000 or no limit based on the self occupaid & let out
After deducting all this balance will be the taxable income
on that employer has to calculate tax as per slabs applicable to the employee this amount will be deducted 12 months period equally from his salary credit
Dear Sir,
In some how employee paid advance tax, In your answer - you mentioned "If any advance tax is paid then tds will be adjusted accordingly.". If we adjust it means, when filing TDS return in 4th quarter Annexure II, In which columns where to show this advance tax is paid by the employee and to mention it as we adjusted it accordingly. Or else I feel it furtherly this will get a liability to company and we get a demand notice from TDS department.
Regards,
RV. Yogeshwar
rv.yogeshwar2016 @ gmail.com
CAclubindia
