Tds on salary

HOW TO CALCULATE TDS ON SALARY. AN EMPLOYEE WHOS SALARY IS 25000 PER MONTH AND HE TAKING 3 DAYS LEAVE AND HIS PF CONTRIBUTION IS RS.500 PER MONTH ESI RS.400 PER MONTH AFTER LEAVE DEDUCTED SALARY RECEIVED THEN ON WHICH AMOUNT HIS TDS WILL DEDUCTED. ON 25000 OR AFTER LEAVE HE GOT DEDUCTED SALARY THAT IS 25000/30*3=2500 25000-2500=22500.

TDS ON WHICH AMOUNT SHOULD DEDUCTED 25000 OR 22500.

PF AND ESI CONTRIBUTION WILL DEDUCTED OR NOT.

PLEASE ANSWER ME AND ANY OTHER PROVISION RELATED TO TDS ON SALARY PLEASE GIVE.

THANKS AND REGARDS,

MANOJ BANNA

 

Replies (2)

Sir,You have to estimate the total salary  that can be received during the financial year and have to calculate Tax on that estimated salary.

After considering TDS of previous months and deductions like PF  if any, the net taxable amount should be deducted over period of remaining months.

Any excess or short comings can be adjusted in next month's TDS.

 

 

TDS on salary is calculated on the basis of total salary due to employee and his esitmated investment for deduction purposes.

In the starting month of financial year employee is asked to submit his prposed investment during the current year and the basis this information total income and taxable income and tax there on is calculated.

Now the tax so calculated is devided by 12 to derive monthly tds amount. This tds is deducted every month from salary.

Now in the month of January and februry it is seen whether the proposed investment were actually made by assessee or not.

If not then total tax due is deducted from the salary of March.

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