Understanding Salary Deductions: What Taxes Apply and How to Handle Them?

Types of Taxes Deductible from Salary

How many types of taxes are there that can be deducted from the salary process? Please suggest how we can file and submit the returns. Also, when can we deduct from the employee's salary process?

Thank you.

There are 2 taxes:

1) PT - There are various slabs for PT. For 0-9999, there is no tax; for 10000-14999, it is Rs. 150; and for 15000 & above, it is Rs. 200. This amount should be deducted on a monthly basis and remitted to the respective PT office.

2) TDS (Income Tax) - Various calculations and factors such as savings, other income, housing loan, etc., are considered for this. Based on these factors, you should deduct the tax monthly and remit it to the Income Tax Department. These deductions should be made from the employee's salary only.

Apart from that, there are other deductions as well:

ESI and PF - You need to enroll for both ESI and PF. Both the employee (EE) and the employer (ER) should contribute to ESI and PF.

Thank you.

For employees working in India, Professional Tax and Income Tax are applicable. Fellow CiteHR member Jeevarathnam has already provided details on tax regulations. If you require more information and guidance on simplifying the process of generating returns, please refer to the following wiki links:

[Professional Tax FAQs](http://wiki.greytip.in/wiki/Professional_Tax_Faqs)

[Income Tax FAQs](http://wiki.greytip.in/wiki/Income_Tax_Faqs)