Salary Structure

i want some help regarding the salary structure

i want to know for the CTC of 387000 what will be the TDS or the incometax that the company will deduct and will apear in the salary slip assuming that the full investment of Rs 1 lakh and other investments is made by the employee.

how will the employer and employee PF appear on the salary slip

if you can show me the breakup of this structure on the actual salary slip format,with the deducations it would be great
mail me at
Thanks
Teena

hi teena!!!

this is reg ur query about salary structure. you want to know about the breakup of 387000... so pls follow the below calculation for TDS

Gross salary = 387000
1) less: hr = Least of the following amount is exempt
1. HRA Paid by Employer
2. 50% of Basic Salary
3. House Rent Paid by Employee - less 10% of Basic Salary


2) less: conveyance (max 9600 per annum)
3) less: PF,LIC, repayment of home loan and tuition fees etc. upto 1 lac as per Chapter VI & sec80c

the balance will be bifurcated as per the slab for men & women under or above 65yrs of age and after all the deductions, you can calculate ur tds per month by dividing the same by 12

I hope the above is clear... any doubt pls revert

salim

Hi salim,

Thankyou i appreciate ur efforts ,but it is still not clear as to what will be the tds or tax,if u can explain me with the help of an actual breakup of the salary in the salary slip it would be great.

Dear All,

Kindly find attached on the above mentioned subject

Hope the same will be of Good Use.

Attached Files

	salary_break_up_calculator_927.xls (17.0 KB, 1495 views)
	salary_break_up_calculator_927.xls (17.0 KB, 1221 views)

Hi peer Mohamad,

Thanks ,that was awesome!!!

but still there was nothing about TDS in this,so my question remained unanswered

Dear Teena
to calculate TDS on Salary one must know the structure of salary as
Basic
HRA
Conv.Allow.
Washing Allow.
Medical Allow.
Special Allow.

At the same time, some company pay Conv. Reimb. instead of Conv. Allow., similarly Medical Reimb.(Max 15000.00 per annum) Instead of Medicla Allow., LTA. (Taxable 2 times in a block of 4 years).
under Income tax Act, Age and Sex is important for income tax deduction.
Normal exemption to be taken in to consideration.

1. Transportation Allow. (Conv. Allow.) Rs. 800 per month.
2. Exemption u/s 80 C (PF, VPF, PPF, LIC, Mutual Fund, Pension Scheme, NSC, Childeren tution fee, Investment in Bonds, House Loan Principal) Maximum limit is 1 Lac only.
3. u/s 80D Mediclaim Insurance Rs. 15000.00
4. U/s 80G 80GG Donation 100% if for child edu. prog. else 50%.
In the mean while house loan interest paid will be deducted from income directly.
5. HRA as per rule admissble. (Actual, Amount of HRA, Paid - 10% of basic).

Hope it will give you a basic concept of Income tax on salary.

rest is depend upon your company salary structure and individual tax management. you are suppose to ask the employees to furnish the income tax decalarion for deduction of their income tax from salary.


Thanks

Mohd. Arif Khan

Thank you so much....

Hi,

I would recommend if you can go through Income tax Book by VK Singhania and in that book splly Income tax from Salary Head. It will give you a clear picture about your query for calculating very component and TDS too. Moreover if you go through any office diary 2007 you can find slabs for men and women and for retitred person.

I will give the salary slab structure , it changes every year from 31 march to 1 april . So financial yaer starts from april2007-march2008.


Gauri

Dear sir,
the structure is realy heplful.
but i m not understanding y there
r TWO consective colomns for
PF deductions?
Kindly rly.

Regrds,
Yogendra.

we have to split salary as basic 60% and remaining things coming under 40% i need clarification