Dear Seniors,
I am confused regarding tax calculation of employee please help me how to calculate tds in employee\'s monthly salary, suppose employee\'s annual ctc is 250000 so as per rule 50000 is taxable so how can we deduct that amount from his monthly salary? please reply asap.
From India, Pune
3I am confused regarding tax calculation of employee please help me how to calculate tds in employee\'s monthly salary, suppose employee\'s annual ctc is 250000 so as per rule 50000 is taxable so how can we deduct that amount from his monthly salary? please reply asap.
From India, Pune
Hi,
Normally you needs to deduct TDS from the employees salary on monthly basis, you can project his salary based on the monthly pay and then calculate his yearly salary and then applicable tax rate /slab on the same and the amount of TDS determined needs to be divided by 12 to arrive at monthly Tax deduction.
Hope the same will help you out.
Regards
Nilay
From India, Ahmadabad
Normally you needs to deduct TDS from the employees salary on monthly basis, you can project his salary based on the monthly pay and then calculate his yearly salary and then applicable tax rate /slab on the same and the amount of TDS determined needs to be divided by 12 to arrive at monthly Tax deduction.
Hope the same will help you out.
Regards
Nilay
From India, Ahmadabad
One more thing to keep in mind. In the last quarter of the financial year do not forget to reassess the employees tax liability considering tax saving documents submitted by him. Make sure to deduct the full and final tax liability in the month of march so that no liability remains outstanding after march.
Thanks & Regards
Ankur Garg
Tax Consultant.
From India, Agra
Thanks & Regards
Ankur Garg
Tax Consultant.
From India, Agra
Dear Mr. Ankur, Can you please explain in details with some examples so that it will be easy for me to implement.
From India, Pune
From India, Pune
Dear Amar, Can U try to use the attached Excel sheet for arriving at the TDS amounts on month to month basis. You can suitably modify as per your requirement.
From India, Bangalore
From India, Bangalore
Dear loginmiraclelogistics,
Thanks for sharing the Salary & IT calculator sheet. I want to modify it but it's password protected and I am not able to modify it. If you don't mind than can you please inbox me it's password!! It will be really helpful.
Regards
Meghna
From India, Ahmedabad
Thanks for sharing the Salary & IT calculator sheet. I want to modify it but it's password protected and I am not able to modify it. If you don't mind than can you please inbox me it's password!! It will be really helpful.
Regards
Meghna
From India, Ahmedabad
Dear Lalit,
TDS calculations require detailed understanding of the your entire pay package. Under the Income Tax Act not every component of the salary is Taxable. hence you need to calculate the TDS only on taxable components.
Eg: if the salary components are Basic & Da, HRA, Conveyance, Education & Special Allowance then only Basic & DA are fully taxable but remaining components of salary are not taxable till certain amount.
please find attached the TDS calculator sheet for you reference.
Regards
From India, Hyderabad
TDS calculations require detailed understanding of the your entire pay package. Under the Income Tax Act not every component of the salary is Taxable. hence you need to calculate the TDS only on taxable components.
Eg: if the salary components are Basic & Da, HRA, Conveyance, Education & Special Allowance then only Basic & DA are fully taxable but remaining components of salary are not taxable till certain amount.
please find attached the TDS calculator sheet for you reference.
Regards
From India, Hyderabad
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Circular No 1-2018 Processing of income-tax returns under section 143(1) of the Income-tax Act .pdf
P-TAX.csv