First of all you see the employees who are coming under the coverable salary of I
Tax.
Then calculate all his earnings from your company namely salary,bonus,allowances,perquisites etc., and also
ascertain his pf contribution.
Collect information from such employee whether he/she is contributing LIC,any other savings deposits permissible under IT Act.
Then get the suggestions from the Accounts Dept. personnel for deriving the amount of tax payable by him and
start deduct from salary on feasible way of the employee(by consulting him/her)
From India, Madras
63Tax.
Then calculate all his earnings from your company namely salary,bonus,allowances,perquisites etc., and also
ascertain his pf contribution.
Collect information from such employee whether he/she is contributing LIC,any other savings deposits permissible under IT Act.
Then get the suggestions from the Accounts Dept. personnel for deriving the amount of tax payable by him and
start deduct from salary on feasible way of the employee(by consulting him/her)
From India, Madras
Mr. Omvir Singhji
Please follow the steps given by Mr P Ramchandran.
Up to Rs. 1,60,000 there is no income tax.
Beyond Rs.1,60,000 there are different slabs for calculation of income tax.
However, please remember that an employee may save up to Rs.1,00,000 in PF, PPF, LIC and similar other schemes and get rebate under section 89. One may also be eligible for further rebate of Rs.20,000 if one invests in infrastructure bonds Savings in PPF is allowed upto Rs.70,000 only. Savings made in the name of spouse if she is not employed and does not have her own source of income, are also exempt for computing income tax of an employee. Similarly, savings made in the above schemes in the name of children below 18 years of age are also exempt.
After considering these rebate subject to production of docuementary evidence by the concerned employee, calculate income tax and start recovery from as early as possible. It is the responsibility of the employer, that is of the HR in other words, to recover the income tax and remit it to the government on or before 31th March every year. Failure to do so attract penal action.
All employees must have their PAN card numbers. Remittances of IT to the IT department is to be made against PAN only. If any employee does not have any PAN, ask him to get it immediately.
Thanks.
Shyam Agrawal
From India, Pune
Please follow the steps given by Mr P Ramchandran.
Up to Rs. 1,60,000 there is no income tax.
Beyond Rs.1,60,000 there are different slabs for calculation of income tax.
However, please remember that an employee may save up to Rs.1,00,000 in PF, PPF, LIC and similar other schemes and get rebate under section 89. One may also be eligible for further rebate of Rs.20,000 if one invests in infrastructure bonds Savings in PPF is allowed upto Rs.70,000 only. Savings made in the name of spouse if she is not employed and does not have her own source of income, are also exempt for computing income tax of an employee. Similarly, savings made in the above schemes in the name of children below 18 years of age are also exempt.
After considering these rebate subject to production of docuementary evidence by the concerned employee, calculate income tax and start recovery from as early as possible. It is the responsibility of the employer, that is of the HR in other words, to recover the income tax and remit it to the government on or before 31th March every year. Failure to do so attract penal action.
All employees must have their PAN card numbers. Remittances of IT to the IT department is to be made against PAN only. If any employee does not have any PAN, ask him to get it immediately.
Thanks.
Shyam Agrawal
From India, Pune
I shall insert an Excel worksheet for Income Tax Calculation on salary for the Financial Year 2010-11 (Assessment Year 2011-12). Prior to that I wish to explain some details to get an idea to enter the inputs.
On gross salary the following deductions are applicable.
1) Professional Tax
2) House Rent in excess of 1/10th of salary subject to ceiling equivalent to HRA
3) Interest on Housing loan subject to ceiling Rs. 1,50,000.
4) Refund on Housing loan, savings, tution fee to 2 children etc. altogether subject to ceiling Rs.100,000.
5) In addition savings on infrastructure bonds upto Rs. 20,000.
5) Other than the above one lakh, 15000 to 20000 towards medi claim premium, 40000 to 60000 towards treatment on specified diseases like Motor Neuron disease, 75000 to 100,000 towards disabilty etc. are also admissible for deduction.
The details can be obtained from following web site. CENTRAL GOVERNMENT EMPLOYEES NEWS: New Income Tax Slab for FY 2010-11
Now taxable income can be calculated as follows.
Gross salary - total deductions = Taxable income
Tax payee can be categorised into 3.
1) Non Seniors - Male
2) Non Seniors - Female
3) Senior Citizens (65 years old & above)
If the taxable income is Rs. 2,40,000, a Senior Citizen is fully exempted from paying tax. Non Senior Female has to pay in excess of Rs.1,90,000 & Non Senior Male in excess of Rs.1,60,000.
Beyond the above income, one has to pay 10% upto Rs.5,00,000, 20% there after upto Rs.8,00,000 and 30% in excess of Rs.8,00,000. In addition, an education cess @ 3% will be charged on Total Tax.
I shall quote on example.
Gross income of a Non Senior Male - Rs. 12,00,000
Deductions (actual) : Professional Tax - 12000, Housing loan interest - 2,00,000, Total savings/deductions - 2,50,000, Savings on Infrastructure bond - 25,000, other deductions over 1,00,000 - 50,000.
Admissible total deductions (subject to ceiling limits) - 12000+150000+100000+20000+50000 = 332000
Taxable income, 1200000 - 332000 = 868000
For Non Senior Male :
Rs. 1,60,000 is exempted.
For next 340000 (500000-160000), 340000x10% = 34000 -(1)
For next 300000 (800000-500000), 300000x20% = 60000 -(2)
For next 68000 (868000-800000), 68000x30%= 20400 -(3)
Tax - (1)+(2)+(3) = 114400
Also For Non Senior Female Tax is, 114400-3000 = 110400
and Senior Citizens Tax is, 114400-8000 = 106400
Education Cess, 114400*3% = 3432.
Total Tax - Rs. 1,17,832
See Excel Sheet. Enter gross salary and deductions/savings applicable in green colour column. Results will be occured in yellow colour. The red colour is used for static datas.
ABBAS.P.S,
Secretary,
ITI Employees' Association ,
ITI Ltd, PALAKKAD - 678 623,
KERALA, INDIA.
Ph. +91 9447 467 667
From India, Bangalore
On gross salary the following deductions are applicable.
1) Professional Tax
2) House Rent in excess of 1/10th of salary subject to ceiling equivalent to HRA
3) Interest on Housing loan subject to ceiling Rs. 1,50,000.
4) Refund on Housing loan, savings, tution fee to 2 children etc. altogether subject to ceiling Rs.100,000.
5) In addition savings on infrastructure bonds upto Rs. 20,000.
5) Other than the above one lakh, 15000 to 20000 towards medi claim premium, 40000 to 60000 towards treatment on specified diseases like Motor Neuron disease, 75000 to 100,000 towards disabilty etc. are also admissible for deduction.
The details can be obtained from following web site. CENTRAL GOVERNMENT EMPLOYEES NEWS: New Income Tax Slab for FY 2010-11
Now taxable income can be calculated as follows.
Gross salary - total deductions = Taxable income
Tax payee can be categorised into 3.
1) Non Seniors - Male
2) Non Seniors - Female
3) Senior Citizens (65 years old & above)
If the taxable income is Rs. 2,40,000, a Senior Citizen is fully exempted from paying tax. Non Senior Female has to pay in excess of Rs.1,90,000 & Non Senior Male in excess of Rs.1,60,000.
Beyond the above income, one has to pay 10% upto Rs.5,00,000, 20% there after upto Rs.8,00,000 and 30% in excess of Rs.8,00,000. In addition, an education cess @ 3% will be charged on Total Tax.
I shall quote on example.
Gross income of a Non Senior Male - Rs. 12,00,000
Deductions (actual) : Professional Tax - 12000, Housing loan interest - 2,00,000, Total savings/deductions - 2,50,000, Savings on Infrastructure bond - 25,000, other deductions over 1,00,000 - 50,000.
Admissible total deductions (subject to ceiling limits) - 12000+150000+100000+20000+50000 = 332000
Taxable income, 1200000 - 332000 = 868000
For Non Senior Male :
Rs. 1,60,000 is exempted.
For next 340000 (500000-160000), 340000x10% = 34000 -(1)
For next 300000 (800000-500000), 300000x20% = 60000 -(2)
For next 68000 (868000-800000), 68000x30%= 20400 -(3)
Tax - (1)+(2)+(3) = 114400
Also For Non Senior Female Tax is, 114400-3000 = 110400
and Senior Citizens Tax is, 114400-8000 = 106400
Education Cess, 114400*3% = 3432.
Total Tax - Rs. 1,17,832
See Excel Sheet. Enter gross salary and deductions/savings applicable in green colour column. Results will be occured in yellow colour. The red colour is used for static datas.
ABBAS.P.S,
Secretary,
ITI Employees' Association ,
ITI Ltd, PALAKKAD - 678 623,
KERALA, INDIA.
Ph. +91 9447 467 667
From India, Bangalore
Dear Mr. Abbas,
Thank you for throwing light on the calcualtion. But may I request you to furnish some more examples with lesser salary band.
Thanks!
Maya
I shall insert an Excel worksheet for Income Tax Calculation on salary. Prior to that I wish to explain some details to get an idea to enter the inputs.
On gross salary the following deductions are applicable.
1) Professional Tax
2) House Rent in excess of 1/10th of salary subject to ceiling equivalent to HRA
3) Interest on Housing loan subject to ceiling Rs. 1,50,000.
4) Refund on Housing loan, savings, tution fee to 2 children etc. altogether subject to ceiling Rs.100,000.
5) In addition savings on infrastructure bonds upto Rs. 20,000.
5) Other than the above one lakh, 15000 to 20000 towards medi claim premium, 40000 to 60000 towards treatment on specified diseases like Motor Neuron disease, 75000 to 100,000 towards disabilty etc. are also admissible for deduction.
The details can be obtained from following web site. CENTRAL GOVERNMENT EMPLOYEES NEWS: New Income Tax Slab for FY 2010-11
Now taxable income can be calculated as follows.
Gross salary - total deductions = Taxable income
Tax payee can be categorised into 3.
1) Non Seniors - Male
2) Non Seniors - Female
3) Senior Citizens (65 years old & above)
If the taxable income is Rs. 2,40,000, a Senior Citizen is fully exempted from paying tax. Non Senior Female has to pay in excess of Rs.1,90,000 & Non Senior Male in excess of Rs.1,60,000.
Beyond the above income, one has to pay 10% upto Rs.5,00,000, 20% there after upto Rs.8,00,000 and 30% in excess of Rs.8,00,000. In addition, an education cess @ 3% will be charged on Total Tax.
I shall quote on example.
Gross income of a Non Senior Male - Rs. 12,00,000
Deductions (actual) : Professional Tax - 12000, Housing loan interest - 2,00,000, Total savings/deductions - 2,50,000, Savings on Infrastructure bond - 25,000, other deductions over 1,00,000 - 50,000.
Admissible total deductions (subject to ceiling limits) - 12000+150000+100000+20000+50000 = 332000
Taxable income, 1200000 - 332000 = 868000
For Non Senior Male :
Rs. 1,60,000 is exempted.
For next 340000 (500000-160000), 340000x10% = 34000 -(1)
For next 300000 (800000-500000), 300000x20% = 60000 -(2)
For next 68000 (868000-800000), 68000x30%= 20400 -(3)
Tax - (1)+(2)+(3) = 114400
Also For Non Senior Female Tax is, 114400-3000 = 110400
and Senior Citizens Tax is, 114400-8000 = 106400
Education Cess, 114400*3% = 3432.
Total Tax - Rs. 1,17,832
See Excel Sheet. Enter gross salary and deductions/savings applicable.
ABBAS.P.S,
Secretary,
ITI Employees' Association ,
ITI Ltd, PALAKKAD - 678 623,
KERALA, INDIA.
Ph. +91 9447 467 667[/QUOTE]
From United States, Greensboro
Thank you for throwing light on the calcualtion. But may I request you to furnish some more examples with lesser salary band.
Thanks!
Maya
I shall insert an Excel worksheet for Income Tax Calculation on salary. Prior to that I wish to explain some details to get an idea to enter the inputs.
On gross salary the following deductions are applicable.
1) Professional Tax
2) House Rent in excess of 1/10th of salary subject to ceiling equivalent to HRA
3) Interest on Housing loan subject to ceiling Rs. 1,50,000.
4) Refund on Housing loan, savings, tution fee to 2 children etc. altogether subject to ceiling Rs.100,000.
5) In addition savings on infrastructure bonds upto Rs. 20,000.
5) Other than the above one lakh, 15000 to 20000 towards medi claim premium, 40000 to 60000 towards treatment on specified diseases like Motor Neuron disease, 75000 to 100,000 towards disabilty etc. are also admissible for deduction.
The details can be obtained from following web site. CENTRAL GOVERNMENT EMPLOYEES NEWS: New Income Tax Slab for FY 2010-11
Now taxable income can be calculated as follows.
Gross salary - total deductions = Taxable income
Tax payee can be categorised into 3.
1) Non Seniors - Male
2) Non Seniors - Female
3) Senior Citizens (65 years old & above)
If the taxable income is Rs. 2,40,000, a Senior Citizen is fully exempted from paying tax. Non Senior Female has to pay in excess of Rs.1,90,000 & Non Senior Male in excess of Rs.1,60,000.
Beyond the above income, one has to pay 10% upto Rs.5,00,000, 20% there after upto Rs.8,00,000 and 30% in excess of Rs.8,00,000. In addition, an education cess @ 3% will be charged on Total Tax.
I shall quote on example.
Gross income of a Non Senior Male - Rs. 12,00,000
Deductions (actual) : Professional Tax - 12000, Housing loan interest - 2,00,000, Total savings/deductions - 2,50,000, Savings on Infrastructure bond - 25,000, other deductions over 1,00,000 - 50,000.
Admissible total deductions (subject to ceiling limits) - 12000+150000+100000+20000+50000 = 332000
Taxable income, 1200000 - 332000 = 868000
For Non Senior Male :
Rs. 1,60,000 is exempted.
For next 340000 (500000-160000), 340000x10% = 34000 -(1)
For next 300000 (800000-500000), 300000x20% = 60000 -(2)
For next 68000 (868000-800000), 68000x30%= 20400 -(3)
Tax - (1)+(2)+(3) = 114400
Also For Non Senior Female Tax is, 114400-3000 = 110400
and Senior Citizens Tax is, 114400-8000 = 106400
Education Cess, 114400*3% = 3432.
Total Tax - Rs. 1,17,832
See Excel Sheet. Enter gross salary and deductions/savings applicable.
ABBAS.P.S,
Secretary,
ITI Employees' Association ,
ITI Ltd, PALAKKAD - 678 623,
KERALA, INDIA.
Ph. +91 9447 467 667[/QUOTE]
From United States, Greensboro
I require tds working sheet how to calculate tds on interest on late delay on professional/rent/cotractors.
From India, Gurgaon
From India, Gurgaon
Sir, It is 1% or 1.5% per month, please update me and send me format of same in excel, so that I can understand all the matter.
From India, Gurgaon
From India, Gurgaon
At my view salaries wont come under TDS bcoz TDS is applicable for those who are giving service under contract basis like consulting charges, services charges, etc and salaries will attract Income Tax bcoz earning through employer by component wise monthly basis.
All salaried wont attract the income tax, those who are earning more and beyond investments if it exceeds will attract for Income Tax as per rule.
Certainly I will welcome for more suggestions.
From India, Hyderabad
All salaried wont attract the income tax, those who are earning more and beyond investments if it exceeds will attract for Income Tax as per rule.
Certainly I will welcome for more suggestions.
From India, Hyderabad
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