Sr. Manager Hr/admin
Head Payroll And Compliance
+1 Other

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?
31st July 2014 From India, Mumbai
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.
31st July 2014 From India, Bangalore
You may use the earlier post for better understanding !
1st August 2014 From India, Mumbai
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.
4th August 2014 From India, Gwalior
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.
4th August 2014 From India, Ahmadabad

Attached Files
Membership is required for download. Create An Account First
File Type: xls I.T. Calc 2014-15.xls (103.5 KB, 173 views)

Add Reply Start A New Discussion

Cite.Co - is a repository of information created by your industry peers and experienced seniors. Register Here and help by adding your inputs to this topic/query page.
Prime Sponsor: TALENTEDGE - Certification Courses for career growth from top institutes like IIM / XLRI direct to device (online digital learning)

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2019 Cite.Co™