hi there
since the person falls in 30% bracket.... the tax rate for deducting tds should be 30.90%.
There is no specific tds rate on salary,
tds on salary will be deducted on the basis of taxliablity of employee,
Dear shashin there's no specified rate for deduction of tax at source from salary.
You have to calculate and deduct the tax urself.
Like if the gross annual salary is Rs. 6 Lacs then ask for the investments by the assessee which are deductible from gross salary,
compute net salary and then,
calculate tax as per prevailing rates,
consider the tax so computed
divide that amount by 12 for monthly TDS deduction
or as per your of the employees wish.
Method is very simple
First calculate the total income of employee,
2nd calculate the income tax on income,
suppose tax liability is rs 12000
than every month tds will be rs 1000
so rate of tds may differ in each case
| Originally posted by :Mukesh Kumar Rawal | ||
| " | at the rate of 30% plus surcharge plus education cess | " |
frnds taining pe jaya karo
Sir Is right said
Method is very simple
First calculate the total income of employee,
2nd calculate the income tax on income,
suppose tax liability is rs 12000
than every month tds will be rs 1000
so rate of tds may differ in each case
Rate for TDS on salary is not specific. It has to be deducted considering the annual income of the employee. The tax liability has to be calculated at the rates specified in the finance act for the specific financial year and the then the tax has to be dividen in monthly instalments that shall be deducted from the salary. For this purpose, deduction can be claimed from GTI on account of Chapter VI after taking due information from the employee. Moreover, the employee also need to give the details of his income / loss under other heads based on which the TDS shall change.
As per Sec.192, the rate of tax is "Average Rate of income Tax", which means we have to follow the following steps:
1.Calculate the Total Income (including income from all heads)
2.Calculate the Tax thereon
3.Calculate the "Average Rate of Income tax" which is Tax divided by Total Income.
4.The Average Rate is the rate at which tax has to be deducted.
5.Previously employees (at their option) are supposed to give infn to the employers in Form No.12C reg their income (not losses) from other "sources / heads" to the employer. Now, the Form is not their in the Rule book.
However, in practice, Employers deduct the tax on "Taxable salary as reduced by deductions eligible to be considered at TDS point itself u/s.80C...etc.,.) at the normal rates applicable i.e., 10%, 20% and 30% as the case may be (+ the Edn Cess).
at slab rate applicable to employee
There is no specific rate in case of salary income. Employee is supposed to make declaration to employer about his claims of HRA, other income , chapter VI A investments and then annual income of the person is to be computed. Total tax liablity will be computed according to rates specified by relavant finance act. this total will be spread monthly basis to compute monthly TDS from salary
| Originally posted by : balram sharma | ||
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Originally posted by :Mukesh Kumar Rawal " at the rate of 30% plus surcharge plus education cess " Â frnds taining pe jaya karo |
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No specicfic Rate for TDS on salaries,
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