Tds on salary of employee?

We are Prvt Ltd Co. One of our female employee getting basic salary of Rs.19500 p.m. and sales commission around 1500-2000 p.m for F.Y.2012-13. How should we deduct TDS on her income? Should we consider Commission amount also while deducting TDs or it should be calculated on basic salary?

Replies (5)

You should consider the commsion amount as salary and dedcut tds. 

Originally posted by : CA Dileep Surya Kumar

You should consider the commsion amount as salary and dedcut tds. 

agreed 

Hi ,

I m running a IT based business in the my mother's name, which was registered 3 months back. I m in the deveopment process of the products of my company and i haven't yet started earning money on this sector yet. I run a training division as my sister company and i m seeing good profit in this training sectors. In the last 3 months i have made a profit of 8,00,00 /-. I have recruited 2 employes to work on my products for the parent company. Advice me how to plan for the payroll of my employees and also suggest me how much should i pay tax. whether i should add the tax for my employees ? give me a clear suggestions. 

TDS should be deducted on sales commission (inclusive of service tax liability, if any) only.

 

Hi Hemaa,

Your quiry quite not cleared based on data you provided. Still whatever you are paying presently to your employee as gross salary; take that per month for upto march 2013 and deduct applicable deductions like PF 12% on (Basic+DA) i.e.own contribution of employee. Prof. Tax as per slab applicable, HRA deduction LIC premium paid by them personally etc if applicable. Then on the accumulated net amount till 31.03.2013; calculate Tax as per slab for A.Y 2013-14 with 2+1% edu.cess on tax amount. You will find the tax amount for the P.Y 2012-13, divide that figure by no. of month rest in you hand till 31.03.2012 e.g.5 month left for this year(Nov'12-Mar'13). Deduct that figure from their individual salary every month and paid to the credit of Govt. within 7th of next month through TDS Challan or online.

Hope it will clear your concept. Welcome any further clarification...!!

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