Tds on salary

TDS 554 views 3 replies

Amit jha

Sr. Officer (Finance & Accounts)

309 Points Joined August 2011

We are a LLP firm and we have applied for TAN 3days ago means yet we were not deducting any TDS on Salary or etc.

because we didn't have TAN and now we have decided to deduct TDS from salary and on other payments..

here is the salary detail for one of our employee for the month of september 2011

Basic 14000

Hra 7000

medical 1250

Transportation 800

LTA 2800

Internet excess allowance 800

telephone calls allowance 500

professional enrichment allowance 450

special performance monthly 2400

total salary =30000/-

so please tell me how will i make computation for deduction TDS from salary

from this month keep in mind yet we have not deducted any TDS because we didnt have TAN

and from this month we want to deduct TDS while we have applied for TAN for 3 days ago

so 1.please send me calculation of deducting tds

2. also inform me where and how i will make provision at the time of computation of TDS of , Internet allowance , Telephone allowance, professional enrichment , special performance monthly payout transportation etc.

Finaly please inform me the complete computation of Deducting TDS from above salary detail

whether there is no investment by any employee us 80c to 80g etc.?

Replies (3)

Amit jha

Sr. Officer (Finance & Accounts)

309 Points Joined August 2011

could anyone please give the answer of above my questin

sanju

Accountant

348 Points Joined May 2011

BAsic salary is fully taxable,

medical allowance is also fully taxable

for transport vallowance, Rs.800/- @ month exemption is available.

FOr HRA,

1) actual hra received,Rs----

2) REnt paid by employee -10% of salary ( here salary = BAsic+da( if form part of salary)+, commission based on fixed % of turnover)

3) 50% of salary if he residing in bombay, calcutta, madras , delhi, , otherwise it is 40%

in above three points which ever is low is exemption

if internet and telephone allowance are for office use then what ever expenditure incurred from those allowances , that expenditure is exemtion and remaining is taxable. after making all deductions if income exceeds 180000/- incase if assesse isbelow 60 years then TDS has to be deducted