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Quarterly division of tax amount

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Amit Vashist

57 Points Posted on 27 October 2021

what is the formula of quarterly division of tax amount? If an employee has to pay 20000 rupees in a financial year as tax amount how much should minimum amount be deducted as tds quarterly? Is there any formula

Replies (2)

Quick Summary

This discussion clarifies that there isn't a direct formula for quarterly tax division. Instead, you must calculate an employee's total taxable income after deductions, determine the tax based on slab rates, and then divide the total tax liability by the remaining months of the financial year. Any specific gains in a quarter should also be accounted for and spread across the year.

Giridhar S Karandikar

Team Lead

5675 Points Posted on 27 October 2021

There's no such formula. you need to calculate the taxable income of employee after considering all deductions
on the balance tax needs to be calculated as per slab rate and divide it remaining month's of the year and deduct tax.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121521 Points Posted on 27 October 2021

Unless there is any gain from CG or IFOS, in particular quarter, the income is to be spread over 12 months, and the liable tax amount should be calculated,