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Dear all, Require your help on how to calculate IT(Income Tax) of an employee based on his CTC.Awaiting for reply. Regards Satya
Dear Satya, As per your post. IT is calculated in CTC. I think you know about slabs of IT. And you should know about exemption too. send me your mail-id, i will forward the material...
There is many factors which we need to consider while calculating IT on salary. Usually IT on salary is calculated and deducted in the form of TDS each month from salary. This is mandatory for every company.If it is not done the company will be liable to pay interest as well as penalties.
First of all please note that IT on salary is not calculated on CTC. It is always calculated on the net taxable income. I have given an example of IT calculation in the attached excel sheet.It is based on some assumptions and will very if any of the assumptions change.I am also attaching a sheet showing the rates and possible excemptions from tax.In case of any doubt please mail me.

Attached Files
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File Type: xls Taxcalculation.xls (28.5 KB, 1374 views)
File Type: pdf rates and calculation.pdf (90.5 KB, 1686 views)

hi louis,
Very good one man...
I am having my own preparation only. but it is really helpful for all freshers and who are on to the stream...
Keep posting like this.... Thank you for your workdone....
With Regards,
G.R.Vishaka Guru.

Hi Can you Please confirm that leave salary is calculated on Basic +DA or Gross. Pl share any notification for implementation.
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