Jeevarathnam
Sr. Manager Hr/admin
AxitaMehta
Sr.hr Executive
Coolhero4u4ever
Heading Hr In B School
Umesh_MSW
Working As Hr.
C K Shah
Professor
+4 Others

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At the time of making Salaries how to deduct the TDS amount, means what formula is applied for that?
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HI Deepika
Before making salaries you should prepare a split-up structure for salaries as Basic, HRA, Conveyance allowance, Medical Allowance & LTA, Based on those calculations you should look for HRA Exemption, Tax Exemption, Savings and other criterias. Base on those you should prepare TDS.
Hi Deepika,
TDS is calculated for those employee who come under the purview of professional or consultant
this people instead of paying income tax they pay TDS for employees i guess the TDS to be deducted is 10.33%
Hi Deepika,
The TDS is deducted after all the allowances & deductions on the gross salary. Please find the excel sheet as attachment. You can see yourself how it would be calculated. Hope that helps.
Note: The Salary Structure is liable to change from organisation to organisation.

Attached Files
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File Type: xls TentativeSalaryBreakUp.xls (24.0 KB, 526 views)

Hi,
TDS on Salaries is Calculated on the basis of Per An um Salary Structure. Example Take Employee Yearly Salary Structure and Make a Decution Under Chapter VI and work out according to based on Salary Slab as per Income Tax Act. and Make it Avg Monthly Deduction.
Regards,
Krishna.B
Dear All Seniors, I am very thankfull to u all for sharing such useful information. Really i was not aware of this TDS deduction... Regards Umesh Sr.Officer & Admin -HR
Dear All, Glad to help you. If you have any queries, please feel free to revert. Would be happy to help till I would be able to & my knowledge restricts me. Thanks, Axita
TDS calculated on only service contractor’s bill. (In finance language Journal Voucher) TDS should be calculated on Gross payment. TDS is only 1 % on Gross Amount. Thanks & Regards, Shyam Kaldoke
As an employer whatever you will pay to your employee during one financial year (Roughly estimation) , get the aggregate amount of emoluments: Basic salary+All taxable allowances+Value of facilities + Employer's contribution to recognized PF in excess of 12% of salary+Employer's contribution to New Pension Scheme etc. Some time employee may provide his other sources of income will also be considered (But losses can not be considered, except interest on loan taken for construction/purchases etc). By this amount you have to deduct the deduction of Section 80, which are applicable to the employee. After that the amount received is estimated salary for the financial year. On this income tax will be calculate as per prescribed rate of income tax. For Male employee the rat es are:

On first Rs. 180000...............Nil

On next Rs. 320000...............10%

On next Rs. 500000...............20%

On balance .........................30%

On above calculated tax, education cess @ 2% and Secondary and Higher Education Cess @ 1% will be added. This will be rounded off to the multiple of Rs. 10. This is the amount of tax to be deducted by you in that particular financial year. This will be divided by 12 and one installment will be deducted every month.

Any problem may be discussed on phone: 09461162226

Dr. C. K. Shah
The info. provided by all the members is very useful. I also have worked for 2 years in Hr department and handled all the responsibilities related to Salary and wages, of around 1000 employees, but in our company Hr manager was not responsible for TDS or any tax related job, that all came under accounts department purview, we needed to maintain records of salary paid in accordance to the government compliance's.
Hope TDS comes under accounts department functions, please clear the concept ......
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