Please guide how to do TDS calculation for employees if employee is showing investment.
Suppose my salary is 25000 thousand and every month 3000 Rs I am paying for LIC premium then how investment is calculated for TDS deduction.
I just know that on gross there should be 10.3 % deduction. If I am wrong please correct and Guide me how to do TDS calculation for those who are having investment plans and those who are not having investment plans.
If there is any formula please provide me.
Generally in investment head you may deposit upto Rs. 100,000 for income tax exemption. This include the principal portion of housing loan. In addition, an infrastructuaral bond of Rs. 20,000 is exempted. Towards housing loan, interest portion upto Rs. 1,50,000 is exempted further. These are only some tips.
Regarding your case. Your annual income is 25000x12 = 3,00,000. Savings, 3000x12 = 36000. Balance - 300000-36000 = 2,64,000. Tax limit for male - 1,80,000 1nd for female - 1,90,000. If you are a female the tax will be 264000-190000 = 74000 x 10% = 7400. Cess @3% = Rs. 222. Total = 7622. (This can be calculated as 74000x10.3%, as you correctly wrote above.)
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