I need to know the calculation steps for monthly deduction of TDS for salaried employees . Is the TDS calculated from Gross Salary or the Net salary after allowances and deductions ?
From India, Trivandrum
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From India, Trivandrum
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Hi,
TDS is not deducted either on Gross or on Net Salary. There are lots of considerations as below:
- Full Basic+DA is considered as Taxable Income.
- Conveyance Allowance is exempted up to 9600/- per annum.
- Medical Allowance is exempted up to 15000/- per annum.
- HRA is exempted as actuals or 40% of Basic.
- Other allowances are considered as Taxable income except washing, Food coupons, and LTA.
- After that, you should deduct PT and any other taxes on the employee.
- Later, you should calculate the deductions under Section 80 for PF, Housing Loan, Insurance, and education fees.
- Based on those, only you should deduct TDS.
I hope this helps clarify the considerations for deductions and exemptions in payroll processing. Let me know if you need further assistance or clarification.
From India, Bangalore
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653TDS is not deducted either on Gross or on Net Salary. There are lots of considerations as below:
- Full Basic+DA is considered as Taxable Income.
- Conveyance Allowance is exempted up to 9600/- per annum.
- Medical Allowance is exempted up to 15000/- per annum.
- HRA is exempted as actuals or 40% of Basic.
- Other allowances are considered as Taxable income except washing, Food coupons, and LTA.
- After that, you should deduct PT and any other taxes on the employee.
- Later, you should calculate the deductions under Section 80 for PF, Housing Loan, Insurance, and education fees.
- Based on those, only you should deduct TDS.
I hope this helps clarify the considerations for deductions and exemptions in payroll processing. Let me know if you need further assistance or clarification.
From India, Bangalore
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Salary with TDS Calculation-Fin al Amended for net.xls