TDS on salary

Tax planning 1764 views 8 replies

Ashish jain

Accounts Executive

28 Points Joined September 2008

Hi,

Please help me to calculate the TDS liability of a company where the Directors Salary is Rs. 100000/- per month. He has given a declaretion where he disclose the Rental income of Rs. 180000/- Per annum from 1 home, Home loan of Rs. 7500000/- on another home where principle repayment is Rs. 200000/- P.A. (Aprox) and interest repayment is Rs. 650000/- PA (Aprox). Lic Rs. 50000/- PA and Mediclaim of Rs. 15000/-.

Please help me to calculate the TDS liability of the company whether we have to deduct the TDS or the taxable salary is zero.

Thanks & regards

Ashish Jain

Replies (8)

Ratan Deep Saxena

Asstt Manager (Accounts & Finance)

2998 Points Joined May 2009

income under salary-1200000

income under house property-2160000

Less : deduction U/s 24 Interest repayment 150000(max.)

Total Income 3310000

Less: DeductionU/s 80C max upto 120000/-120000

U/s 80D (mediclaim) 15000

Taxable Income 3075000

Upto 160000 Nil

160001 to 300000 15000 (10%)

300001 to 500000 40000(20%)

balance Rs. (3075000-500000)

2575000 772500 (30%)

Net tax to be deducted Rs. 827500

Monthly tax to be deducted.... Rs. 68958/-

Best Regards,

ratan

Jems

Proprietor

40 Points Joined October 2009

Dear Ratan,

I think u 4gt to provide for deduction of 30% on rental Income.

Further, is it possible, if we consider other property DLOP to get allowability of whole Interest expense.

Also, in case a person is holding only 1 prop and earning rent on it, is it possible to say that it is SOP?

Thanking u in advance.

Ratan Deep Saxena

Asstt Manager (Accounts & Finance)

2998 Points Joined May 2009

Yes, standard deduction @ 30% is allowed from income from house property. Thnx for reminding me that Important point. It is not possible to say that property as SOP if we earn rent on it, coz it is not holding by us wholly for the purpose of our occupation (resident purpose).......

regards,

ratan