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Originally posted by : Aradhana HR |
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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
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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
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Income Slabs |
Income Tax Rate |
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i. |
Where the total income does not exceed Rs. 2,50,000/-. |
NIL |
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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/-. |
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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/-. |
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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
CAclubindia
