dear all, If i get 50000 p.m. how wil TDS deduct from my salary. plz tell and tell me about the current TDS slab if any, and how to calculate. regards r.bora
From India, New Delhi
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From India, New Delhi
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Dear R. Bora,
I shall insert an Excel worksheet for Income Tax Calculation on salary for the Financial Year 2010-11 (Assessment Year 2011-12). Prior to that, I wish to explain some details to get an idea to enter the inputs.
On gross salary, the following deductions are applicable:
1) Professional Tax
2) House Rent in excess of 1/10th of salary subject to a ceiling equivalent to HRA
3) Interest on Housing loan subject to a ceiling of Rs. 1,50,000
4) Refund on Housing loan, savings, tuition fee for 2 children, etc., altogether subject to a ceiling of Rs.100,000
5) In addition, savings on infrastructure bonds up to Rs. 20,000
6) Other than the above one lakh, 15,000 to 20,000 towards mediclaim premium, 40,000 to 60,000 towards treatment for specified diseases like Motor Neuron disease, 75,000 to 100,000 towards disability, etc., are also admissible for deduction
Now, taxable income can be calculated as follows:
Gross salary - total deductions = Taxable income
Taxpayers can be categorized into 3 groups:
1) Non-Seniors - Male
2) Non-Seniors - Female
3) Senior Citizens (65 years old & above)
If the taxable income is Rs. 2,40,000, a Senior Citizen is fully exempted from paying tax. Non-Senior Female has to pay in excess of Rs. 1,90,000 and Non-Senior Male in excess of Rs. 1,60,000.
Beyond the above income, one has to pay 10% up to Rs. 5,00,000, 20% thereafter up to Rs. 8,00,000, and 30% in excess of Rs. 8,00,000. In addition, an education cess of 3% will be charged on the Total Tax.
I shall provide an example:
Gross income of a Non-Senior Male - Rs. 12,00,000
Deductions (actual): Professional Tax - 12000, Housing loan interest - 2,00,000, Total savings/deductions - 2,50,000, Savings on Infrastructure bond - 25,000, other deductions over 1,00,000 - 50,000
Admissible total deductions (subject to ceiling limits) - 12000 + 150000 + 100000 + 20000 + 50000 = 332000
Taxable income, 1200000 - 332000 = 868000
For Non-Senior Male:
Rs. 1,60,000 is exempted.
For the next 340000 (500000-160000), 340000 x 10% = 34000 -(1)
For the next 300000 (800000-500000), 300000 x 20% = 60000 -(2)
For the next 68000 (868000-800000), 68000 x 30% = 20400 -(3)
Tax - (1) + (2) + (3) = 114400
Also, for Non-Senior Female, Tax is 114400 - 3000 = 110400
and for Senior Citizens, Tax is 114400 - 8000 = 106400
Education Cess, 114400 * 3% = 3432
Total Tax - Rs. 1,17,832
See Excel Sheet. Enter gross salary and deductions/savings applicable in the green color column. Results will be in the yellow color. The red color is used for static data.
ABBAS.P.S,
Secretary,
ITI Employees' Association,
ITI Ltd, PALAKKAD - 678 623,
KERALA, INDIA.
Ph. +91 9447 467 667
From India, Bangalore
Acknowledge(0)Amend(0)
530I shall insert an Excel worksheet for Income Tax Calculation on salary for the Financial Year 2010-11 (Assessment Year 2011-12). Prior to that, I wish to explain some details to get an idea to enter the inputs.
On gross salary, the following deductions are applicable:
1) Professional Tax
2) House Rent in excess of 1/10th of salary subject to a ceiling equivalent to HRA
3) Interest on Housing loan subject to a ceiling of Rs. 1,50,000
4) Refund on Housing loan, savings, tuition fee for 2 children, etc., altogether subject to a ceiling of Rs.100,000
5) In addition, savings on infrastructure bonds up to Rs. 20,000
6) Other than the above one lakh, 15,000 to 20,000 towards mediclaim premium, 40,000 to 60,000 towards treatment for specified diseases like Motor Neuron disease, 75,000 to 100,000 towards disability, etc., are also admissible for deduction
Now, taxable income can be calculated as follows:
Gross salary - total deductions = Taxable income
Taxpayers can be categorized into 3 groups:
1) Non-Seniors - Male
2) Non-Seniors - Female
3) Senior Citizens (65 years old & above)
If the taxable income is Rs. 2,40,000, a Senior Citizen is fully exempted from paying tax. Non-Senior Female has to pay in excess of Rs. 1,90,000 and Non-Senior Male in excess of Rs. 1,60,000.
Beyond the above income, one has to pay 10% up to Rs. 5,00,000, 20% thereafter up to Rs. 8,00,000, and 30% in excess of Rs. 8,00,000. In addition, an education cess of 3% will be charged on the Total Tax.
I shall provide an example:
Gross income of a Non-Senior Male - Rs. 12,00,000
Deductions (actual): Professional Tax - 12000, Housing loan interest - 2,00,000, Total savings/deductions - 2,50,000, Savings on Infrastructure bond - 25,000, other deductions over 1,00,000 - 50,000
Admissible total deductions (subject to ceiling limits) - 12000 + 150000 + 100000 + 20000 + 50000 = 332000
Taxable income, 1200000 - 332000 = 868000
For Non-Senior Male:
Rs. 1,60,000 is exempted.
For the next 340000 (500000-160000), 340000 x 10% = 34000 -(1)
For the next 300000 (800000-500000), 300000 x 20% = 60000 -(2)
For the next 68000 (868000-800000), 68000 x 30% = 20400 -(3)
Tax - (1) + (2) + (3) = 114400
Also, for Non-Senior Female, Tax is 114400 - 3000 = 110400
and for Senior Citizens, Tax is 114400 - 8000 = 106400
Education Cess, 114400 * 3% = 3432
Total Tax - Rs. 1,17,832
See Excel Sheet. Enter gross salary and deductions/savings applicable in the green color column. Results will be in the yellow color. The red color is used for static data.
ABBAS.P.S,
Secretary,
ITI Employees' Association,
ITI Ltd, PALAKKAD - 678 623,
KERALA, INDIA.
Ph. +91 9447 467 667
From India, Bangalore
Acknowledge(0)Amend(0)
Dear Abbas,
Just one small clarification to your calculation which is as per my understanding.
1. Profession tax is exempt to a maximum of Rs. 2500/- PA.
2. The total taxable income is dependent on salary structuring. Conveyance of Rs. 9600/- PA is exempt from tax if the structure includes Rs. 9600/- as conveyance.
3. HRA - Exemption is based on the rent paid by the employee. The exemption is calculated as per below:
a) Actual HRA Received
b) 40% of Basic salary - 50% in the case of Delhi, Mumbai, Calcutta & Chennai
c) Rent paid - 10% of Basic salary
Out of the above, whichever is least would be exempt from tax and should be reduced from taxable income.
3A. In case Medical Reimbursement is part of the salary structure - based on the submission of receipts, a maximum of Rs. 15,000 would be exempt from tax and will not be part of the Taxable Income.
4. The Interest on housing loan is available only if the following conditions are met:
a) House should be in the name of the employee & constructed or ready to be occupied
b) The loan should be borrowed by the employee for that specific house
c) If the house is occupied by the employee, then the maximum amount of Interest exempt from tax is Rs. 1.50 lakhs.
d) if the house is let out, then there is a separate calculation. The employee should disclose how much rent is received from that property and then arrive at the Income/(Loss) from the house property.
Thanks,
Showri
From India, Faridabad
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Just one small clarification to your calculation which is as per my understanding.
1. Profession tax is exempt to a maximum of Rs. 2500/- PA.
2. The total taxable income is dependent on salary structuring. Conveyance of Rs. 9600/- PA is exempt from tax if the structure includes Rs. 9600/- as conveyance.
3. HRA - Exemption is based on the rent paid by the employee. The exemption is calculated as per below:
a) Actual HRA Received
b) 40% of Basic salary - 50% in the case of Delhi, Mumbai, Calcutta & Chennai
c) Rent paid - 10% of Basic salary
Out of the above, whichever is least would be exempt from tax and should be reduced from taxable income.
3A. In case Medical Reimbursement is part of the salary structure - based on the submission of receipts, a maximum of Rs. 15,000 would be exempt from tax and will not be part of the Taxable Income.
4. The Interest on housing loan is available only if the following conditions are met:
a) House should be in the name of the employee & constructed or ready to be occupied
b) The loan should be borrowed by the employee for that specific house
c) If the house is occupied by the employee, then the maximum amount of Interest exempt from tax is Rs. 1.50 lakhs.
d) if the house is let out, then there is a separate calculation. The employee should disclose how much rent is received from that property and then arrive at the Income/(Loss) from the house property.
Thanks,
Showri
From India, Faridabad
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