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Dear Team, Requesting you all for the Employee TDS deduction file i need. I'm new in salary process need your guidance how to TDS, How to calculate,
on what basis we have to deduct it, to whom we have to deduct.

Greetings,
TDS Is calculated on the basis of Total income of the employee for the financial year, which include Salaries, Bonus, Performance bonus..Etc.
In TDS , deductions under chapter VI (Sec 80C) we can have a exception of 1,50,000 of income ,if we show the insurance premium, children education, rent Etc.
Tax slabs :
0 to 250000- 0% of tax,
250001 to 500000-5% of tax,
500001 to 1000000-10 of tax,
>1000000-30% of tax.
Note: After the exception (if any,upto 150000), then only we can go for tax slab.

HI ,
PFB current TDS deduction slab:-
Now, reduce the maximum allowable income tax exemptions on a salary. Currently, income up to Rs.2.5 lakhs is fully exempt from paying taxes, while income from Rs.2.5 lakhs to Rs.5 lakhs is taxed at 10%, and Rs.5 lakhs to Rs.10 lakhs income bracket is taxed at 20%. All income above this amount is taxed at 30%
Regards
Sanjeev

Please follow CBDT CIRCULAR NO 01 /2019 1st January, 2019
Dear Karthik Gonglur,
You have erroneously used word exception instead of exemption.
Correct Normal Rates of tax:
Total Income Rate of tax
1 Where the total income does not exceed Rs. 2,50,000/-. Nil
2 Where the total income exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/-. 5 per cent of the amount by which the total income exceeds Rs. 2,50,000/-
3 Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-.
Rs. 12,500/- plus 20 per cent of the amount by which the total income exceeds Rs. 5,00,000/-.
4 Where the total income exceeds Rs. 10,00,000/-. Rs. 1,12,500/- plus 30 per cent of the amount by which the total income exceeds Rs. 10,00,000/-
Regards,
Suresh


Attached Files
File Type: pdf cbdt-circular-1-2019-income-tax-dt-1-jan-2019-calculation-of-tds-on-salary-for-fy-2018-19-.pdf (560.5 KB, 257 views)

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