Please tell me how to deduct the tds on salary. There is a payment to employees of Rs. 25000/- pm currenty. How to start deducting TDS from the next month including on previous payments. what is the slab or rate to deduct on monthly salary?
Deepak
(student)
(104 Points)
Replied 12 September 2009
tds on salary is deducted on the basis of average tax rate. you have to calculate annual income of the employee, calculate total tax (as per slab rate applicable to individual) and then deduct 1/12 portion of tax monthly from salary.
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 12 September 2009
deepak is right but take into consideration his investment declarations viz 80c,sec24 deductions etc and then deduct tax accordingly each month after computing it on an annual basis
Dintakurthi Tirumala
(CA FINAL)
(15989 Points)
Replied 13 September 2009
yes,mr.deepak was correct by conidering with mr.sivaram
Deepak
(student)
(104 Points)
Replied 15 September 2009
i mean the annual income after providing for deduction under chapter vi
"Live class on Python for Financial Analysis: Unlocking Efficiency in Accounting and Finance"
GST Live Certification Course (39th Batch) - April 2024 (Weekend Batch) (With Certificate)
CAclubindia
