TDS Deduction Information - Salary Structure
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TDS Deduction Information - Salary Structure

unknownGuest Started The Discussion:

Hello,

I am working a small software company. When I joined my salary was around Rs 12.5K per month. And after couple of months it was raised to Rs. 17.5K per month.

Now, from the time it has raised to Rs. 17.5K, every month, Rs. 500 is being deducted from my salary on the name of TDS. I wanted to know whether I am eligible for TDS and is that amount what company is deducting is correct? what is the procedure to estimate TDS on my salary?

Many of my friends say the No TDS should be deducted from my salary. I am confused and need urgent suggestions.

Thanks

dmshamli - Member Since: Jan 2007
Hi,

TDS depends on your salary structure as well as on your tax (investment declaration).
I would suggest you to check your declaration and salary head as few salary head are fully/partially non taxable.

Incase, you face any problem just revert....

Regards'
Deepak Malik

rajendra_vekhande - Member Since: Oct 2009
Dear XYZ.. There are diffrent tax slab for male of female, in your scrap it is not clear wether u are male or female. so this things then revert back. regards, rajendra

abbasiti - Member Since: May 2010
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


Attached FilesProvided by community member abbasiti. Join us to learn and grow with your peers.
File Type: xls Income Tax Calculator.xls (17.0 KB, 809 views)
unknownGuest - Member Since: Sep 2010
Hello Abbas,

That was really a wonderful explanation.. Thanks for the file too. I calculated my tax and have saved it in the file while i have attached here. Kindly go through it and let me know whether it is correct or not.

I get 1195 as total Tax. So Rs. 1195 i have divide by 12 months right? And it comes to around 100 Rs per month. But I am still not understanding how and why these guys are deducting Rs. 500 per month on the name of TDS?

Is Income tax and TDS on my salary same?

@rajendra: yes i am a male candidate.

Thanks


Attached FilesProvided by community member unknownGuest. Join us to learn and grow with your peers.
File Type: xls My Income stmt.xls (21.0 KB, 335 views)
abbasiti - Member Since: May 2010
Dear Rajendra,

I have gone through your income details entered in excel sheet. The tax calculated using the excel sheet found correct.

Your total income is Rs. 2,10,000. If the deductions are not taking care of, you will be charged a tax of Rs. 5000 and cess Rs. 150. So check whether you have made noticed the details of deductions before the authorities. However you contact the concerned authorities in this regard.

Abbas.P.S

unknownGuest - Member Since: Sep 2010
Hi abbas, I pay LIC every month and that i have declared. What else deductions need to be taken care of? It would be kind of you if guide me. I am totally unaware of this. Thanks

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