Tds calculation on monthly basis

Dear All,

I am Working as a HR Manger but not good in TDS calculation. The salary component in my organization are basic+DA+HRA+Tramsport Allowance+Other allowance. My question is how I Calculate the TDS of my employees on monthly basis.

For eg. if emp A has following salary Structure as per above mentioned 

15000+12000+10000+800+2200

1. if the employee is above 60 years of age then what should be the TDS Calculation.

2. If the employee has invested in some Policies like LIC etc then what should be the TDS Calculation

kindly guide me

regards

 

Replies (3)
Originally posted by : Aradhana HR

Dear All,

I am Working as a HR Manger but not good in TDS calculation. The salary component in my organization are basic+DA+HRA+Tramsport Allowance+Other allowance. My question is how I Calculate the TDS of my employees on monthly basis.

For eg. if emp A has following salary Structure as per above mentioned 

15000+12000+10000+800+2200

1. if the employee is above 60 years of age then what should be the TDS Calculation.

2. If the employee has invested in some Policies like LIC etc then what should be the TDS Calculation

kindly guide me

regards

 

Assuming all the above components are taxable gross salary  will be (40000*12) i.e 480000 for whole year..

Deduct the investments made in Insurance, PF etc from this...Then apply rates applicable as per applicable slab rates...For Senior citizen following are slab rates for AY 2013-14 

 

 Individual resident who is of the age of 60 years or more but below the age of 80 years at any time during the previous year

  Income Slabs Income Tax Rate
i. Where the total income does not exceed Rs. 2,50,000/-. NIL
ii. Where the total income exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/- 10% of the amount by which the total income exceeds Rs. 2,50,000/-.
iii. Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/- Rs. 25,000/- + 20% of the amount by which the total income exceeds Rs. 5,00,000/-.
iv. Where the total income exceeds Rs. 10,00,000/- Rs. 125,000/- + 30% of the amount by which the total income exceeds Rs. 10,00,000/-.

Education Cess: 3% of the Income-tax.

Divide the amount of tax calculated from above by 12 to get monthly amount for TDS

Is necessary deduct TDS on salary everymonth?

 

Dear Kanthraj,

 

As per CBDT circular no. 8/2010,dated 13-12-2010,  Clause 3 therein says that

income tax has to be deducted from salary every month at the time of payment.

So as per my opinion  you shud  deduct the TDS every month or as and when you pay.

 

Regards,

CA Anu Bansal


 

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