There will be no TDS on allowance which is tax free?

I am working as an HR generalist, one of our employee's gross salary is 30,000/- per month Now he will come under the head of TDS. Please tell me how to calculate TDS. Also i have heard that if we consider some amount as _____ Allowance (where this allowance will be tax free), then there will be no TDS in such consideration. But i exactly dont know what allowance is that. I request seniors to help me to get a clear picture of TDS.

Hi
Tax is always considered on the taxable income only received in any financial year from April to March.
The exemptions are Conveyance allowance 1600/- PM
Medical allowance 1250/- PM
HRA based on the location 40% on the basic for Metro & 30% for Non metro
You may have to consider about the employee savings & housing loan if any
if need more details I have one TDS calculator in excel I can share it with you

Dear Jeevarathnam P,
As I know, medical-reimbursement against bills upto Rs. 15000/- during the year is exempt and medical allowance is fully taxable.
Thanks
V K Gupta

dear jeevan;
can u provide the list of metro cities & non-metro cities. also i think metro cities are 50% HRA and non metro is 40% HRA.
Please relook on this matter.