Tds on salary

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What should included or excluded while calculating TDS on salary of an employee of Pvt ltd co. from Following heads:

1)Basic Salary 2) Conveyance Allowance 3)Diwali bonus 4) Variable Pay 5) paid leave 6) Profession tax 

For directors of company is their any change while calculating TDS on salary?

 

Replies (4)

Basic pay, Diwali Bonus, Variable pay and paid leave shall be taxable, whereas the conveyance allowance (limit Rs. 9600 p.a.) and Profession Tax (limit Rs. 2500 p.a.) shall be deducted while calculating income chargeable under the head salaries.

 

 

Regards,

Devendra Kulkarni

While calcultaing TDS on Salary all the items which are taxable are to be included. Hence, all the following items should be included while calculating TDS on Salary:

1)Basic Salary

2) Conveyance Allowance (deduct upto Rs.9,600 p.a)

3)Diwali bonus

4) Variable Pay

5) Paid Leave

6) Profession tax (deduct upto Rs.2,400 p.a.)

And no there are no seperate rule for directors.

Hey

 

Refer this link : Salary its Meaning & TDS on Salary

 

You will get most of your query solved there..

 

Thanks!!


CCI Pro

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