give me information about income tax deduction and it’s limit
From India, Mumbai
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From India, Mumbai
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For males:
- 1,60,001 to 3,00,000: 10%
- 3,00,001 to 5,00,000: 20%
- 5,00,001 and above: 30%
For females:
- 1,90,001 to 3,00,000: 10%
- 3,00,001 to 5,00,000: 20%
- 5,00,001 and above: 30%
For senior citizens (above 65 years):
- 2,40,001 to 3,00,000: 10%
- 3,00,001 to 5,00,000: 20%
- 5,00,001 and above: 30%
Under 80C MAXIMUM LIMIT: 1,00,000/-
80D: 20,000 (Medical insurance premium)
80DD: 1,00,000 (Medical treatment for dependant on a handicapped person)
80DDB: 50,000 (Specified diseases only)
80E: Loan for education (i.e., there is no interest on loan and principal loan)
80G: Charitable trust fund (10% of basic salary)
HOUSE RENT PAID MAXIMUM PER MONTH: 3,000 and ABOVE. EMPLOYEE HAS TO SUBMIT RENT BILLS.
Conveyance: It depends on the employee's working months (per month 800 only).
From India, Hyderabad
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4- 1,60,001 to 3,00,000: 10%
- 3,00,001 to 5,00,000: 20%
- 5,00,001 and above: 30%
For females:
- 1,90,001 to 3,00,000: 10%
- 3,00,001 to 5,00,000: 20%
- 5,00,001 and above: 30%
For senior citizens (above 65 years):
- 2,40,001 to 3,00,000: 10%
- 3,00,001 to 5,00,000: 20%
- 5,00,001 and above: 30%
Under 80C MAXIMUM LIMIT: 1,00,000/-
80D: 20,000 (Medical insurance premium)
80DD: 1,00,000 (Medical treatment for dependant on a handicapped person)
80DDB: 50,000 (Specified diseases only)
80E: Loan for education (i.e., there is no interest on loan and principal loan)
80G: Charitable trust fund (10% of basic salary)
HOUSE RENT PAID MAXIMUM PER MONTH: 3,000 and ABOVE. EMPLOYEE HAS TO SUBMIT RENT BILLS.
Conveyance: It depends on the employee's working months (per month 800 only).
From India, Hyderabad
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Dear Friends,
The above quote is quite informative. I just wanted to confirm if the TDS should be deducted from the first month of joining the organization or only once an employee is confirmed. Secondly, if TDS is deducted in the probation period, then is it calculated on the actual or the annual gross salary? I wish to have some good feedback from you all.
Thanks
From India, New Delhi
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The above quote is quite informative. I just wanted to confirm if the TDS should be deducted from the first month of joining the organization or only once an employee is confirmed. Secondly, if TDS is deducted in the probation period, then is it calculated on the actual or the annual gross salary? I wish to have some good feedback from you all.
Thanks
From India, New Delhi
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Dear Friend, TDS is deducted every month from gross salary irrespective whether in probation or permanent. This is as per my knowledge. Plz correct me seniors if am wrong. Regards, Swati
From India, Pune
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From India, Pune
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Dear Swati,
TDS is calculated on employees' bonus, incentive, and performance pay, and the employee should fall under the income tax bracket.
The slab rates for TDS are different from those of income tax. It is applicable to men, women, and senior citizens as follows:
- 160001 - 300000: 10.3%
- 300001 - 500000: 20.6%
- 500001 & above: 30.9%
Regarding income tax deductions, if an employee provides investment proof, then they are entitled to deductions under:
- Section 24 B: 150000/- interest on housing loan per annum (pa)
- Section 80C: Maximum limit 1,00,000/- pa
- Section 80D: Medical insurance premium Max is 15000/-. If the employee has dependent parents, then 15000/-; total max limit 30000/- pa. If the parents are senior citizens, then instead of 15k, it will be 20k, making the max limit 35000/- pa.
- Section 80DD: 1,00,000 (Medical treatment for a dependent handicapped person)
- Section 80DDB: 50,000 (Specified diseases only)
- Section 80E: Loan for education (i.e., there is no interest on the loan & principal loan)
- Section 80G: Charitable trust fund (10% of basic salary)
- HOUSE RENT PAID: Maximum per month 3,000 & above 3,000. EMPLOYEES HAVE TO SUBMIT RENT BILLS.
- Conveyance: Depends on the employee's working months (per month 800 only).
Please review the corrected information and let me know if you need further clarification.
From India, Pune
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TDS is calculated on employees' bonus, incentive, and performance pay, and the employee should fall under the income tax bracket.
The slab rates for TDS are different from those of income tax. It is applicable to men, women, and senior citizens as follows:
- 160001 - 300000: 10.3%
- 300001 - 500000: 20.6%
- 500001 & above: 30.9%
Regarding income tax deductions, if an employee provides investment proof, then they are entitled to deductions under:
- Section 24 B: 150000/- interest on housing loan per annum (pa)
- Section 80C: Maximum limit 1,00,000/- pa
- Section 80D: Medical insurance premium Max is 15000/-. If the employee has dependent parents, then 15000/-; total max limit 30000/- pa. If the parents are senior citizens, then instead of 15k, it will be 20k, making the max limit 35000/- pa.
- Section 80DD: 1,00,000 (Medical treatment for a dependent handicapped person)
- Section 80DDB: 50,000 (Specified diseases only)
- Section 80E: Loan for education (i.e., there is no interest on the loan & principal loan)
- Section 80G: Charitable trust fund (10% of basic salary)
- HOUSE RENT PAID: Maximum per month 3,000 & above 3,000. EMPLOYEES HAVE TO SUBMIT RENT BILLS.
- Conveyance: Depends on the employee's working months (per month 800 only).
Please review the corrected information and let me know if you need further clarification.
From India, Pune
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EMPLOYEE SALARY INCOME TAX CALCULATION.xls x