Hi, Kindly explain me how do you calculate TDS from Salary? What is TDS ?please tell me to calculate ? Why do you deduct? Lokesh
From India, Delhi
Acknowledge(0)
Amend(0)
9From India, Delhi
Acknowledge(0)Amend(0)
Income Tax Calculation for Financial Year 2010-11
I shall insert an Excel worksheet (but comparatively 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, tuition fee for 2 children, etc., altogether subject to ceiling Rs. 100,000
5. In addition, savings on infrastructure bonds up to Rs. 20,000
6. Other than the above one lakh, 15,000 to 20,000 towards mediclaim premium, 40,000 to 60,000 towards treatment of specified diseases like Motor Neuron disease, 75,000 to 100,000 towards disability, etc., are also admissible for deduction.
Calculating Taxable Income
Now, taxable income can be calculated as follows:
Gross salary - total deductions = Taxable income
Taxpayers can be categorized into three groups:
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% up to Rs. 5,00,000, 20% thereafter up to 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.
Example Calculation
Gross income of a Non-Senior Male - Rs. 12,00,000
Deductions (actual): Professional Tax - 12,000, 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) - 12,000 + 1,50,000 + 1,00,000 + 20,000 + 50,000 = 3,32,000
Taxable income, 12,00,000 - 3,32,000 = 8,68,000
For Non-Senior Male:
- Rs. 1,60,000 is exempted.
- For the next 3,40,000 (5,00,000-1,60,000), 3,40,000 x 10% = 34,000 -(1)
- For the next 3,00,000 (8,00,000-5,00,000), 3,00,000 x 20% = 60,000 -(2)
- For the next 68,000 (8,68,000-8,00,000), 68,000 x 30% = 20,400 -(3)
Tax - (1) + (2) + (3) = 1,14,400
Also, for Non-Senior Female Tax is 1,10,400 (1,14,400-3,000) and for Senior Citizens Tax is 1,06,400 (1,14,400-8,000)
Education Cess, 1,14,400 * 3% = 3,432.
Total Tax - Rs. 1,17,832
Please refer to the Excel Sheet. Enter gross salary and deductions/savings applicable in the green color column. Results will be shown in the yellow color. The red color is used for static data.
Regards, ABBAS.P.S
Secretary, ITI Employees' Association, ITI Ltd, PALAKKAD - 678 623, KERALA, INDIA.
Ph. [Phone Number Removed For Privacy Reasons]
From India, Bangalore
Acknowledge(11)
Amend(0)
I shall insert an Excel worksheet (but comparatively 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, tuition fee for 2 children, etc., altogether subject to ceiling Rs. 100,000
5. In addition, savings on infrastructure bonds up to Rs. 20,000
6. Other than the above one lakh, 15,000 to 20,000 towards mediclaim premium, 40,000 to 60,000 towards treatment of specified diseases like Motor Neuron disease, 75,000 to 100,000 towards disability, etc., are also admissible for deduction.
Calculating Taxable Income
Now, taxable income can be calculated as follows:
Gross salary - total deductions = Taxable income
Taxpayers can be categorized into three groups:
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% up to Rs. 5,00,000, 20% thereafter up to 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.
Example Calculation
Gross income of a Non-Senior Male - Rs. 12,00,000
Deductions (actual): Professional Tax - 12,000, 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) - 12,000 + 1,50,000 + 1,00,000 + 20,000 + 50,000 = 3,32,000
Taxable income, 12,00,000 - 3,32,000 = 8,68,000
For Non-Senior Male:
- Rs. 1,60,000 is exempted.
- For the next 3,40,000 (5,00,000-1,60,000), 3,40,000 x 10% = 34,000 -(1)
- For the next 3,00,000 (8,00,000-5,00,000), 3,00,000 x 20% = 60,000 -(2)
- For the next 68,000 (8,68,000-8,00,000), 68,000 x 30% = 20,400 -(3)
Tax - (1) + (2) + (3) = 1,14,400
Also, for Non-Senior Female Tax is 1,10,400 (1,14,400-3,000) and for Senior Citizens Tax is 1,06,400 (1,14,400-8,000)
Education Cess, 1,14,400 * 3% = 3,432.
Total Tax - Rs. 1,17,832
Please refer to the Excel Sheet. Enter gross salary and deductions/savings applicable in the green color column. Results will be shown in the yellow color. The red color is used for static data.
Regards, ABBAS.P.S
Secretary, ITI Employees' Association, ITI Ltd, PALAKKAD - 678 623, KERALA, INDIA.
Ph. [Phone Number Removed For Privacy Reasons]
From India, Bangalore
Acknowledge(11)+6 more
Amend(0)
I would wants to know the full form of TDS....Is it Tax Deductible at source...or Total Deductible Salary???? Please help!!!!
From United Kingdom, Edinburgh
Acknowledge(0)Amend(0)
From United Kingdom, Edinburgh
Acknowledge(0)Amend(0)
Inquiry About Education Cess Applicability
My company is involved in excavation work and earthwork contracting. We employ drivers, helpers, operators, and supervisors, with salaries ranging from $9,000 to $11,500 per month. I am curious to know if education cess is applicable in this scenario. Could you please provide guidance on this matter and share insights specific to our industry?
Thank you.
Regards,
From India, Thana
Acknowledge(1)Amend(0)
My company is involved in excavation work and earthwork contracting. We employ drivers, helpers, operators, and supervisors, with salaries ranging from $9,000 to $11,500 per month. I am curious to know if education cess is applicable in this scenario. Could you please provide guidance on this matter and share insights specific to our industry?
Thank you.
Regards,
From India, Thana
Acknowledge(1)Amend(0)
Kindly explain me how do you calculate TDS from Salary? What is TDS ?please tell me to calculate ? Why do you deduct? Lokesh
From India, Mumbai
Acknowledge(0)Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
Dear Lokesh,
I shall insert an Excel worksheet (but comparatively 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.
Deductions on Gross Salary
On gross salary, the following deductions are applicable:
• Professional Tax
• House Rent in excess of 1/10th of salary subject to a ceiling equivalent to HRA
• Interest on Housing loan subject to a ceiling of Rs. 1,50,000
• Refund on Housing loan, savings, tuition fee for 2 children, etc., altogether subject to a ceiling of Rs. 100,000
• In addition, savings on infrastructure bonds up to Rs. 20,000
• Other than the above one lakh, Rs. 15,000 to Rs. 20,000 towards mediclaim premium, Rs. 40,000 to Rs. 60,000 towards treatment of specified diseases like Motor Neuron disease, Rs. 75,000 to Rs. 100,000 towards disability, etc., are also admissible for deduction.
Calculating Taxable Income
Now taxable income can be calculated as follows:
Gross salary - total deductions = Taxable income
Taxpayer Categories
Taxpayers can be categorized into three groups:
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 Females have to pay in excess of Rs. 1,90,000, and Non-Senior Males in excess of Rs. 1,60,000.
Beyond the above income, one has to pay 10% up to Rs. 5,00,000, 20% thereafter up to 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.
Example Calculation
Gross income of a Non-Senior Male - Rs. 12,00,000
Deductions (actual): Professional Tax - 12,000, 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) - 12,000 + 1,50,000 + 1,00,000 + 20,000 + 50,000 = 3,32,000
Taxable income, 12,00,000 - 3,32,000 = 8,68,000
For Non-Senior Male:
Rs. 1,60,000 is exempted.
For the next 3,40,000 (5,00,000 - 1,60,000), 3,40,000 x 10% = 34,000 -(1)
For the next 3,00,000 (8,00,000 - 5,00,000), 3,00,000 x 20% = 60,000 -(2)
For the next 68,000 (8,68,000 - 8,00,000), 68,000 x 30% = 20,400 -(3)
Tax - (1) + (2) + (3) = 1,14,400
Also, for Non-Senior Female Tax is, 1,14,400 - 3,000 = 1,10,400
and Senior Citizens Tax is, 1,14,400 - 8,000 = 1,06,400
Education Cess, 1,14,400 * 3% = 3,432.
Total Tax - Rs. 1,17,832
See Excel Sheet. Enter gross salary and deductions/savings applicable in the green color column. Results will be shown in yellow color. The red color is used for static data.
Regards,
Nilesh Karjawkar
(Legal Compliance & Audit
Knight Frank (I) Pvt Ltd
From India, Mumbai
Acknowledge(2)Amend(0)
I shall insert an Excel worksheet (but comparatively 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.
Deductions on Gross Salary
On gross salary, the following deductions are applicable:
• Professional Tax
• House Rent in excess of 1/10th of salary subject to a ceiling equivalent to HRA
• Interest on Housing loan subject to a ceiling of Rs. 1,50,000
• Refund on Housing loan, savings, tuition fee for 2 children, etc., altogether subject to a ceiling of Rs. 100,000
• In addition, savings on infrastructure bonds up to Rs. 20,000
• Other than the above one lakh, Rs. 15,000 to Rs. 20,000 towards mediclaim premium, Rs. 40,000 to Rs. 60,000 towards treatment of specified diseases like Motor Neuron disease, Rs. 75,000 to Rs. 100,000 towards disability, etc., are also admissible for deduction.
Calculating Taxable Income
Now taxable income can be calculated as follows:
Gross salary - total deductions = Taxable income
Taxpayer Categories
Taxpayers can be categorized into three groups:
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 Females have to pay in excess of Rs. 1,90,000, and Non-Senior Males in excess of Rs. 1,60,000.
Beyond the above income, one has to pay 10% up to Rs. 5,00,000, 20% thereafter up to 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.
Example Calculation
Gross income of a Non-Senior Male - Rs. 12,00,000
Deductions (actual): Professional Tax - 12,000, 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) - 12,000 + 1,50,000 + 1,00,000 + 20,000 + 50,000 = 3,32,000
Taxable income, 12,00,000 - 3,32,000 = 8,68,000
For Non-Senior Male:
Rs. 1,60,000 is exempted.
For the next 3,40,000 (5,00,000 - 1,60,000), 3,40,000 x 10% = 34,000 -(1)
For the next 3,00,000 (8,00,000 - 5,00,000), 3,00,000 x 20% = 60,000 -(2)
For the next 68,000 (8,68,000 - 8,00,000), 68,000 x 30% = 20,400 -(3)
Tax - (1) + (2) + (3) = 1,14,400
Also, for Non-Senior Female Tax is, 1,14,400 - 3,000 = 1,10,400
and Senior Citizens Tax is, 1,14,400 - 8,000 = 1,06,400
Education Cess, 1,14,400 * 3% = 3,432.
Total Tax - Rs. 1,17,832
See Excel Sheet. Enter gross salary and deductions/savings applicable in the green color column. Results will be shown in yellow color. The red color is used for static data.
Regards,
Nilesh Karjawkar
(Legal Compliance & Audit
Knight Frank (I) Pvt Ltd
From India, Mumbai
Acknowledge(2)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Income Tax Calculation 2009-10 - Salaries.xls