Jeevarathnam
Sr. Manager Hr/admin
GOPALPERIWAL
Gm-commercial
+1 Other

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Hi,
I have a query on TDS calculation of employees.
I just joined a new company as HR and handling Payroll. How do I come to know how much Tax I need to deduct from each employee salary per month.
For eg, I have an employee whose salary is 1,00,000 per month and his TDS is deducting 5,000 per month as per earlier HR. Is this calculation right?

Hi
Nope thats not correct. How an employee earning 1,00,000 will be applicable of tax of just 5000/- PM. It should be more. Before deducting tax you should take all their savings details, Rental details, Any housing loan or education loan etc. Based on all the calculations only you can calculate TDS. Your finance persons can help on TDS calculation.

Ideally an HR person should know the TDS calculation systems. If not that perhaps he is not fair with his job firstly because if there is lesser TDS deduction, under the Income Tax law the full expense to the Company would not be allowed, resulting in additional tax liability on the employer.
Therefore, better sit with some finance person or Tax expert and devise a format which an HR department must take from every employee under tax bracket to deduct proper TDS and also save the employer from any hidden tax liability.

For TDS Calculation, the Break Up of the Salary and the Investment Details are necessary, secondly as Mr. Joseph has rightly said the Income Tax Calculator is available at site, even am attaching for your kind perusal. Do the calculation and if any further help required please consult the forum again.

Attached Files
File Type: xls I.T. Calc 2014-15.xls (103.5 KB, 174 views)

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