TDS Calculation - tax exemption.. CiteHR
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TDS Calculation - Tax Exemption

ravitashukla1 Started The Discussion:

Hi Seniors,
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.

Thnaks
Ravita

abbasiti - Contributing Member
Dear Ravita,

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.)

Abbas.P.S

ravitashukla1 - Contributing Member
Thanks Ms. Abbas, now its clear to me. Based on the example (You gave for my salary) I may calculate for other employees. I believe I will have to collect all investment papers as a proof of investment.

sonia basson - Contributing Member
Hello Seniors,

I would like to seek your guidance in this regard that TDS deduction shall be implemented in a company with how much minimum number of working employees and from what annual salary . Please shower some light on the raised question.

industrialhr - Contributing Member
Hi Sonia,
TDS - Tax Deduction at source.
It is not related with number of the working employees rather it is related with the Income of the employee.
Suggest you visit any site related with income tax, please go through the Tax Slabs and rebate clause. (Please first know salried income)

Hi Seniors, Can u plz help me to calculate TDS, as i need it for my interview.

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