Hi, Kindly suggest and help me solve my query about TAX (TDS). I want to know about the TDS slab and answers to the following questions:
1. If an employee earns 3 Lakh per annum, how much TDS will be deducted from their salary?
2. If an employee pays 20% tax, what is the CTC and take-home salary?
3. If you have any tax slab or tax calculation sheet, please send it to my email ID.
4. What is the process for tax claim and withdrawing the TDS amount?
Please send me a calculation sheet after preparation and share the criteria for tax and TDS savings as well. Thank you :)
Best Regards,
Varrun Kumar
From India, Delhi
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1. If an employee earns 3 Lakh per annum, how much TDS will be deducted from their salary?
2. If an employee pays 20% tax, what is the CTC and take-home salary?
3. If you have any tax slab or tax calculation sheet, please send it to my email ID.
4. What is the process for tax claim and withdrawing the TDS amount?
Please send me a calculation sheet after preparation and share the criteria for tax and TDS savings as well. Thank you :)
Best Regards,
Varrun Kumar
From India, Delhi
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Hi Varun Kumar,
The tax slab is as follows:
- Up to 250,000/- exempt
- 250,000 to 500,000: 10% tax
- 500,000 to 1,000,000: 20%
- More than 1,000,000: 30% plus 3% education cess
- 2% education plus 1% SHEC
However, for senior citizens, the exemption is up to 300,000, and for super senior citizens, the exemption is up to 500,000. Tax calculation depends on earnings and investments. There are many deduction sections like 80C, 80G, 80D, 80DD, 80E, 24B, 80GG, rebate under section 87A, etc.
Feel free to get in touch with me for tax implication matters.
Warm Regards,
Devesh Chauhan
Practicing in Accounts, Finance, Taxation, Labour Laws
From India, Basti
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18The tax slab is as follows:
- Up to 250,000/- exempt
- 250,000 to 500,000: 10% tax
- 500,000 to 1,000,000: 20%
- More than 1,000,000: 30% plus 3% education cess
- 2% education plus 1% SHEC
However, for senior citizens, the exemption is up to 300,000, and for super senior citizens, the exemption is up to 500,000. Tax calculation depends on earnings and investments. There are many deduction sections like 80C, 80G, 80D, 80DD, 80E, 24B, 80GG, rebate under section 87A, etc.
Feel free to get in touch with me for tax implication matters.
Warm Regards,
Devesh Chauhan
Practicing in Accounts, Finance, Taxation, Labour Laws
From India, Basti
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Mr. Chauhan,
Thank you for this valuable answer and support; I am really thankful to you.
Please let me give you another clarification about sections such as 80C, 80G, 80D, 80DD, 80E, 24B, 80GG, rebate u/s 87A. Also, could you please provide some clarification on the following questions:
1. What is the SHEC, and could you give me the meaning of this word?
2. What is the age of senior citizen exemption?
3. What is the age of super senior citizen exemption?
Could you also provide me with an Excel sheet containing calculation formulas for this TAX SLAB?
Thanks and Regards,
Varun Kumar
From India, Delhi
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Thank you for this valuable answer and support; I am really thankful to you.
Please let me give you another clarification about sections such as 80C, 80G, 80D, 80DD, 80E, 24B, 80GG, rebate u/s 87A. Also, could you please provide some clarification on the following questions:
1. What is the SHEC, and could you give me the meaning of this word?
2. What is the age of senior citizen exemption?
3. What is the age of super senior citizen exemption?
Could you also provide me with an Excel sheet containing calculation formulas for this TAX SLAB?
Thanks and Regards,
Varun Kumar
From India, Delhi
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Dear Varun,
SHEC means Secondary Higher Education Cess. For senior citizen exemption, the age limit is 60 years. For super senior citizens, it is 80 years. However, understanding the deductions under various sections like 80C, 80D, 80GG, 24B, etc., is a complex concept because each section has its purpose, criteria, and ceiling limit.
Can you please let me know if you are a student or working in the accounts department? Kindly confirm, and then I will guide you accordingly with practical calculations.
Warm Regards,
Devesh Chauhan Practicing in Accounts, Finance, Taxation, Labour Laws
From India, Basti
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SHEC means Secondary Higher Education Cess. For senior citizen exemption, the age limit is 60 years. For super senior citizens, it is 80 years. However, understanding the deductions under various sections like 80C, 80D, 80GG, 24B, etc., is a complex concept because each section has its purpose, criteria, and ceiling limit.
Can you please let me know if you are a student or working in the accounts department? Kindly confirm, and then I will guide you accordingly with practical calculations.
Warm Regards,
Devesh Chauhan Practicing in Accounts, Finance, Taxation, Labour Laws
From India, Basti
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Mr. Chauhan,
Thanks for the info.
Yes, I am working in the HR payroll department where I have to solve different types of queries from employees. That's why I need to gain more knowledge about TAX, PF, and ESIC. Would you please guide me and provide me with the necessary information as per my requirements? Thanks, Boss.
Regards,
Varun Kumar
From India, Delhi
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Thanks for the info.
Yes, I am working in the HR payroll department where I have to solve different types of queries from employees. That's why I need to gain more knowledge about TAX, PF, and ESIC. Would you please guide me and provide me with the necessary information as per my requirements? Thanks, Boss.
Regards,
Varun Kumar
From India, Delhi
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Mr. Chauhan,
Would you please give me the minimum wages list or provide me with information about the minimum wages?
According to my knowledge, ESIC and EPF are both mandatory deductions if the salary is below 15K. If the salary is above 15K, then EPF is optional for an employee, and there is no deduction of ESIC.
I request you to please inform me about this information and guide me. Thank you.
Best Regards,
Santosh Kumar
From India, Delhi
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Would you please give me the minimum wages list or provide me with information about the minimum wages?
According to my knowledge, ESIC and EPF are both mandatory deductions if the salary is below 15K. If the salary is above 15K, then EPF is optional for an employee, and there is no deduction of ESIC.
I request you to please inform me about this information and guide me. Thank you.
Best Regards,
Santosh Kumar
From India, Delhi
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Dear Varun,
Minimum wages differ from state to state. You can refer to the circular issued by your state government regarding minimum wages.
ESIC contribution shall be made on the gross salary. If the gross salary is below 15K, ESI contribution is subjected to a six-month-wise slab: April to September and October to March. If during any six-month period the employee's gross salary exceeds 15K, you still have to make ESI contributions until the end of that period.
PF is to be calculated on basic plus DA. If the basic plus DA is below 15K, however, if the employee is already a contributor in PF with a previous employer, then you must deduct his/her PF even if the basic plus DA exceeds 15K.
As you are working in the HR payroll department, always strive to enhance your knowledge because knowledge is crucial for future growth and promotion, so keep learning continuously.
For any queries or doubts, feel free to get in touch.
Warm Regards,
Devesh Chauhan Practicing in Accounts, Finance, Taxation, Labour Laws
From India, Basti
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Minimum wages differ from state to state. You can refer to the circular issued by your state government regarding minimum wages.
ESIC contribution shall be made on the gross salary. If the gross salary is below 15K, ESI contribution is subjected to a six-month-wise slab: April to September and October to March. If during any six-month period the employee's gross salary exceeds 15K, you still have to make ESI contributions until the end of that period.
PF is to be calculated on basic plus DA. If the basic plus DA is below 15K, however, if the employee is already a contributor in PF with a previous employer, then you must deduct his/her PF even if the basic plus DA exceeds 15K.
As you are working in the HR payroll department, always strive to enhance your knowledge because knowledge is crucial for future growth and promotion, so keep learning continuously.
For any queries or doubts, feel free to get in touch.
Warm Regards,
Devesh Chauhan Practicing in Accounts, Finance, Taxation, Labour Laws
From India, Basti
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Dear Devesh,
Thanks for wishing me and helping me to gain knowledge. My circle is primarily Haryana, but I also need to know the minimum wages of three circles as listed below:
1. Haryana
2. Delhi (NCR)
3. Uttar Pradesh
Please let me know about this as I am quite confused.
Your faithful learner ;)
Best Regards,
Varun Kumar
From India, Delhi
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Thanks for wishing me and helping me to gain knowledge. My circle is primarily Haryana, but I also need to know the minimum wages of three circles as listed below:
1. Haryana
2. Delhi (NCR)
3. Uttar Pradesh
Please let me know about this as I am quite confused.
Your faithful learner ;)
Best Regards,
Varun Kumar
From India, Delhi
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Dear Varun,
It seems you are not experienced in the HR field. Can you please let me know about your existing experience, qualifications, job location, and CTC?
In any case, under the minimum wages aspect, what has led you to be confused? Is it the existing minimum wages rate or something else? Kindly do let me know.
Warm Regards,
Devesh Chauhan
Practicing in Accounts, Finance, Taxation, Labour Laws
From India, Basti
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It seems you are not experienced in the HR field. Can you please let me know about your existing experience, qualifications, job location, and CTC?
In any case, under the minimum wages aspect, what has led you to be confused? Is it the existing minimum wages rate or something else? Kindly do let me know.
Warm Regards,
Devesh Chauhan
Practicing in Accounts, Finance, Taxation, Labour Laws
From India, Basti
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Dear Dev,
Yes, I have approximately one year of experience in the HR Department. Regarding qualifications, job location, and CTC, the details are provided below:
Qualification: Pursuing MBA (HR)
Job Location: Gurgaon
Regards,
Varun Kumar
From India, Delhi
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Yes, I have approximately one year of experience in the HR Department. Regarding qualifications, job location, and CTC, the details are provided below:
Qualification: Pursuing MBA (HR)
Job Location: Gurgaon
Regards,
Varun Kumar
From India, Delhi
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Dear Dev,
I already know that if an employee is receiving a salary below 15K per month, then PF and ESIC deductions are mandatory. Additionally, if their salary increases after a few months to a level above 15K per month, the PF and ESIC deductions will continue, but I am interested in understanding the scenario where an employee joins with a higher salary package exceeding 20K. In this case, PF and ESIC deductions will not occur unless the employee chooses to have PF deductions from their salary.
Kindly provide me with a better solution.
Thanks.
Regards,
Varun Kumar
From India, Delhi
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I already know that if an employee is receiving a salary below 15K per month, then PF and ESIC deductions are mandatory. Additionally, if their salary increases after a few months to a level above 15K per month, the PF and ESIC deductions will continue, but I am interested in understanding the scenario where an employee joins with a higher salary package exceeding 20K. In this case, PF and ESIC deductions will not occur unless the employee chooses to have PF deductions from their salary.
Kindly provide me with a better solution.
Thanks.
Regards,
Varun Kumar
From India, Delhi
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Dear Varun,
If an employee's declaration in Form 11 states that he/she is already a member of EPF, then the company must deduct his/her PF even if the basic plus DA exceeds 15K. For example, if an employee joins the company with a 25K basic and also declares in Form 11 that he is not presently an EPF member, then it depends on your company whether to deduct PF or not. Your company can either restrict the contribution to a fixed 15K or deduct on the full 25K. However, if the company deducts PF on 25K (which exceeds 15K), then the employee will not be a member of EPS. The entire 24% contribution shall be deposited in EPF A/C column 1, not in column 10 EPS A/C.
Warm Regards,
Devesh Chauhan Practicing In Accounts, Finance, Taxation, Labour Laws
From India, Basti
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If an employee's declaration in Form 11 states that he/she is already a member of EPF, then the company must deduct his/her PF even if the basic plus DA exceeds 15K. For example, if an employee joins the company with a 25K basic and also declares in Form 11 that he is not presently an EPF member, then it depends on your company whether to deduct PF or not. Your company can either restrict the contribution to a fixed 15K or deduct on the full 25K. However, if the company deducts PF on 25K (which exceeds 15K), then the employee will not be a member of EPS. The entire 24% contribution shall be deposited in EPF A/C column 1, not in column 10 EPS A/C.
Warm Regards,
Devesh Chauhan Practicing In Accounts, Finance, Taxation, Labour Laws
From India, Basti
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Dear Dev,
Please guide me about the salary structure. What is the percentage of the below details:
Details:
- Gross Salary
- Basic
- HRA
- City Compensatory Allowance
- Conveyance
- Medical
- Educational
- LTC
Please provide me the percentage of the above details.
Thanks.
Regards,
Varun Kumar
From India, Delhi
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Please guide me about the salary structure. What is the percentage of the below details:
Details:
- Gross Salary
- Basic
- HRA
- City Compensatory Allowance
- Conveyance
- Medical
- Educational
- LTC
Please provide me the percentage of the above details.
Thanks.
Regards,
Varun Kumar
From India, Delhi
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Dear Varun,
The percentage of a certain component depends on company policy; hence, it may differ from company to company. Also, according to CTC, salary components like medical, conveyance, LTA, etc., are designed to reduce the tax burden on employees. The employer is not obligated to provide medical, conveyance, or LTA as they are not statutory components.
Generally, we calculate the CTC as follows:
For example, if the CTC is 50,000, we will calculate as under:
- Basic: 50% of CTC, 25K
- HRA: 50% of basic if the employee resides in a metro city; for non-metro cities, it is 40% of basic. Assuming the employee resides in Gurgaon, 40% of basic shall be considered, 10K.
- Medical reimbursement: 40% of basic, 10K.
- Conveyance allowance: 10% of basic, 2.5K.
- LTA: 10% of basic, 2.5K.
The total will be 100% of 50,000/-. I have not added city compensatory allowance because it is fully taxable in income tax. Additionally, in medical allowance, children's tuition fees of Rs. 100 per child are exempt subject to a maximum of two children.
I hope this is clear now. If you have any doubts, please let me know.
Thanks & Regards,
Devesh Chauhan
Practicing in Accounts, Finance, Taxation, Labour Laws
From India, Basti
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The percentage of a certain component depends on company policy; hence, it may differ from company to company. Also, according to CTC, salary components like medical, conveyance, LTA, etc., are designed to reduce the tax burden on employees. The employer is not obligated to provide medical, conveyance, or LTA as they are not statutory components.
Generally, we calculate the CTC as follows:
For example, if the CTC is 50,000, we will calculate as under:
- Basic: 50% of CTC, 25K
- HRA: 50% of basic if the employee resides in a metro city; for non-metro cities, it is 40% of basic. Assuming the employee resides in Gurgaon, 40% of basic shall be considered, 10K.
- Medical reimbursement: 40% of basic, 10K.
- Conveyance allowance: 10% of basic, 2.5K.
- LTA: 10% of basic, 2.5K.
The total will be 100% of 50,000/-. I have not added city compensatory allowance because it is fully taxable in income tax. Additionally, in medical allowance, children's tuition fees of Rs. 100 per child are exempt subject to a maximum of two children.
I hope this is clear now. If you have any doubts, please let me know.
Thanks & Regards,
Devesh Chauhan
Practicing in Accounts, Finance, Taxation, Labour Laws
From India, Basti
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EMPLOYEE SALARY INCOME TAX CALCULATION.xls x