I want to know the TDS deduction if the package is 6 LPA then how TDS will be deducted,it is for gross CTC or applied only on basic salary Please explain Akshay Kaushal
From India, Indore
Dear Akki,

Its a ready post adhere here for your reference:

The 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 disability etc. are also admissible for deduction.

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 occurred in yellow colour. The red colour is used for static data's.



From India, Mumbai

Attached Files
File Type: xls Income_Tax_Calculator(1).xls (30.0 KB, 45 views)

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