garima2281
5

Hello Every one, Can anyone help me on how to calculate tds monthly.
From India, New Delhi
abbasiti
517

Dear Garima,

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.

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

From India, Bangalore
Attached Files (Download Requires Membership)
File Type: xls Income Tax Calculator.xls (17.0 KB, 843 views)

V.Raajaram
Dear Mr. Abbas,
Please explain the HRA portion admissible for deduction from the salary drawn. if it is own house then what is the admissible deduction for HRA. If the salary is consolidated then how can we calculate the HRA portion. Please explain.
Regards
V.Raajaram

From India, Madurai
welfareofficer
2

Dear Members, If employer can provie Quarters and electricy. Is there any exemption....... Hoping for the clarification. Regards.........venkateswara rao
From India, Bangalore
abbasiti
517

HRA is not exempted. If you pay house rent, there is provison to deduct this on certain conditions. Accordingly there is no question of house rent towards own residence. Abbas.P.S
From India, Bangalore
abbasiti
517

HRA is not exempted. If you pay house rent, there is provison to deduct it on certain conditions. Accordingly there is no question of house rent towards own residence. Abbas.P.S
From India, Bangalore
MADAN MOHAN VERMA
1

Dear Garima Please find attachment of TDS details. I think it will help you....
From India, New Delhi
Attached Files (Download Requires Membership)
File Type: doc BASICS ON TAXATION.doc (58.0 KB, 819 views)

Rajprince
Dear Mates, Proud to be in this group, I m a new person to the group and gaining loads and loads of information on HRM.. Thanks a load one and all.. Regards, Raj
From India, Bangalore
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