For Men Below 60 Years Of Age
Income Tax Slab Income Tax Rate
Income upto Rs. 2,50,000 Nil
Income between Rs. 2,50,001 - Rs. 500,000 --10% of Income exceeding Rs. 2,50,000
Income between Rs. 500,001 - Rs. 10,00,000 20% of income exceeding 500000
first 250000 nil tax,next 250000 10% tax RS25000
last Rs100000 20% tax (Rs20000)
total tax Rs45000.
But you need to add interest on SB a/c and take deductions into a/c.
1.Is this for 2015-16 or for earlier period ?
2.HRA received as a part of salary and House Rent paid for the full year (1.4.15 to 31.3.16)
3.Does it include any perks other than basic, DA, regular allw. If yes indicate details
4.Any other incomes like dividends, int.on investments like bank FDs, SB A/cs.
Also indicate your savings like -
1.Premium paid towards LIC, medical insurance, NSC, Mutual funds, 5 yrs.bank FDs, Infra.bonds
2.Children Education - tuition fees
3.Any house building loans taken from banks, EMI refunded with break-up towards principal and interest (to be supported by bank certificate)
4.Medical exp./premium incurred on self, family, dependent parents & handicapped.
5.Contribution towards PPF and other pension funds.
6.TDS & advance tax remitted/recovered by your office so far, if not you are liable for some int.on delay.
I need a guidance. I am working in a startup company in Delhi, which recently registered (three months back) itself and till date not generating any revenue. Company is in investment phase now. We are 15 employees, whose salary ranges from 10k to 75k monthly.
There is no PF registration, hence no PF deduction.
My question is should we deduct Tax from the salary of employee who falls into tax bracket.
How should i design employee salary breakup-to minimize tax burden.
should we deduct professional tax too.
Thank you for your valuable advice.
From the Co. point of view since there has been no revenue so far there won't be IT & advance tax in respect of the Co. (What do you mean by 'Revenue' ? is't cash inflow or invoicing. If you have already raised invoices then it should be accounted as "Income" which should form part of your Profit & Loss A/c. to arrive at taxable income, pl.check this.) If there is profit there won't be much of IT. So nothing to worry for the current year. Consult your Auditors for all these aspects before you should relax.
Reg.PF - since you are already 15 employees you should register with EPFO immediately and recover PF from employees covered and remit together with co's contribution. How about ESI ? examine this also.
Reg. PT. in Delhi PT is not in vogue. Check this aspect and get it confirmed from your ACTO/VAT officer.
The first step is to get registered as a ‘payee’ of professional tax in the local Professional Tax Office under the respective State’s Act. This is mandatory for all individuals, persons and bodies who are liable to pay professional tax.
As to calculation and payment of these taxes through prescribed forms and methods, you have to do it yourself. Your calculation and payment has to be audited and certified by a Chartered Accountant.
When it comes to employees however, it is the duty of the employer to deduct Professional Tax. That is, apart from paying professional tax for its own activities, every employer has to calculate, deduct and pay the professional tax on the salaries paid to employees.
Professional tax, like Income Tax, follows an slab rate method (based on how much you earn) to ensure taxes are levied equitably.
Regarding Provident Fund:
If there are 20+ permanent employees in your company, then you should start working on PF deduction. Else with less than 20 employees you can do it voluntarily but it is not mandatory.
Hope this helps you to get your answer.