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TDS on salary

TDS 685 views 1 replies

Hi,,,,,

If a employee (MALE) joins our company in may-08. And we provide the following salary.

Basic-16000 p.m

HRA-  4500 p.m

Trpt. allowance-800 p.m

spc. allowance- 4500 pm

Means total salary will be given 25,800/- p.m

means i have to calculate for 11 months salary (from may to march 09) assuming that the employee will do his job since March-09.even if i calculate the TDS on salary on 31 jan 09.

means Basic salary will b  176000/-

HRA                                          49500/- (No rent paid by employee so fullt taxable)

Trpt. allownce                         8800/-

Spc. allownce                          49500/-

less: exemption Trpt. allownce-8800/-

Net salry income will b     Rs. 275000/-

less : ded u/s 80 c     PPF         55000/-   (5000/- paid by employer in PPF)

Life insurance premium paid   25000/-  

ULIP                                                10000/-

Children tution fees                     5000/-

Taxable salary will b           Rs. 180000/-    

Tax will be caluclated on 180000/- & tax amount would be 3,090/-

and 3090/11=281/- will be deducted from every month from his salary ?????

and the company has not deducted ant TDS before, means from May 08 to jan 09 (9 months*281/-)= 2529/- will be deducted from his salary in the same month salary (ie: Feb month) or not?????????

And also why the company has not deducted TDS in the month of May-08 when employee joins the company. Is that because of 150000/- limit or not????

 

Please clarify me all the above ponits ........

I shall be very thankful to you.............................

 

 

Replies (1)

Hi..

Following points need to be considered:

1. PPF Rs.5000 paid by the employer will be taxed above (obligation of employee met by employer)

2.Your monthly calculation is correct(subject to above).

3. whole amount need be deducted in Feb or haif in feb & remaining in MAr'09.

4. Company would have considered that the employee might be paying some rent. That can be the reason or due to negligence.

Regards,


CCI Pro

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