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Dear All,
I have prepared salary break-up for an employee in my organization inline with the salary break-up of other employees. His basic is 22667 and HRA is 11333, so the gross is 34000. We only deduct PF amount i.e 780/-. Please help me in calculating the TDS amount from his salary and how to reduce this amount. And tell me how TDS calculation is done in detail.

From India, Delhi
Hai, please find the excel regards Marimuthu G
From India, Madras

Attached Files
File Type: xls TDS CAL1.xls (19.5 KB, 6645 views)

Here by i am sending the 2 formats for TDS Calculation for Male and Female. You can calculate TDS for yearlywise and divided by 12 months. You can get the monthly TDS.
Thanks & Regards
Raju Akula.
929 010 5007

From India, Hyderabad

Attached Files
File Type: xls Male Format.xls (25.0 KB, 3249 views)
File Type: xls Female Format.xls (25.5 KB, 1058 views)

Dear Neetu,

HRA shown above is 50%. It is the maximum limit to be exempted. To get full exemption on HRA, House rent receipt @60% (Actual HRA + 10%) is to be furnished. i.e 11333+2267= 13600.

Balance salary is 22667x12 = 2,72,004 -(1).

Savings towards PF, 780x12 = 9360 - (2)

Taxable income (1)-(2) = 2,62,644

In case of Male Employee, Tax = (2,62,644-1,60,000)x10% = 10264.4

For Female, additional exemption of 3000 on tax is applicable.

For further deduduction on Tax, there are various provisions as detailed under.

I shall insert an Excel worksheet (but comparitively simple) 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.

6) 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.

The details can be obtained from following web site.


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.



ITI Employees' Association ,

ITI Ltd, PALAKKAD - 678 623,


Ph. +91 9447 467 667

From India, Bangalore

Attached Files
File Type: xls Income Tax Calculator.xls (17.0 KB, 1599 views)

Dear Sir, I need proper salary breakup with tax exemption details. Kindly help me in this regard.
From India, Kolkata
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