Dear All, Can any one tell me, how to deduct TDS from the Employee salary on Monthly Basis. Is there any formula for that calculation. Aravind Y HR Executive Sreeven Infocom Limited
From India, Hyderabad
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From India, Hyderabad
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I suggest you go for a simple payroll software that will solve all your troubles. While we have Excel formulas, I recommend opting for software such as Tally or other economical alternatives. Choose a vendor who has been in this business for at least 10-15 years, with a good support team, and who provides regular updates on tax changes.
Investment Declaration and Tax Deduction Process
Typically, at the beginning of the financial year, around April/May '13, companies collect what we call an "Investment Declaration Form" for advance tax calculation from staff members falling under taxable income. No proofs are required at this stage, but it must be submitted compulsorily around January-February '14.
Based on the above declaration, the Finance department will compute the taxable income and deduct the same amount every month. If a staff member fails to submit the proof by January/February '14, the balance tax will be deducted between January-March '14.
Good luck.
Regards,
Ukmitra
From Saudi Arabia, Riyadh
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297Investment Declaration and Tax Deduction Process
Typically, at the beginning of the financial year, around April/May '13, companies collect what we call an "Investment Declaration Form" for advance tax calculation from staff members falling under taxable income. No proofs are required at this stage, but it must be submitted compulsorily around January-February '14.
Based on the above declaration, the Finance department will compute the taxable income and deduct the same amount every month. If a staff member fails to submit the proof by January/February '14, the balance tax will be deducted between January-March '14.
Good luck.
Regards,
Ukmitra
From Saudi Arabia, Riyadh
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Steps to Deduct TDS from Employee's Salary
Step 1: Every employee should be asked to inform you of the savings they expect to have made by 30th April.
Step 2: Calculate the taxable income of each individual based on last year's investments and savings.
Step 3: Please include a formula to deduct 8% of taxable income divided by 12 for those with income up to 3 lakhs.
Step 4: Please include a formula to deduct 16% of taxable income divided by 12 for income up to 5 lakhs.
Step 5: Review the amount deducted by 1st January.
Step 6: Increase or decrease the final amount and deduct it in 3 installments so that the employee is not burdened on 31st March.
Step 7: Inform the employee in the payslip of the amount deducted and the date of deposit to the IT department.
Regards,
Dr. Ram
From India, Indore
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Step 1: Every employee should be asked to inform you of the savings they expect to have made by 30th April.
Step 2: Calculate the taxable income of each individual based on last year's investments and savings.
Step 3: Please include a formula to deduct 8% of taxable income divided by 12 for those with income up to 3 lakhs.
Step 4: Please include a formula to deduct 16% of taxable income divided by 12 for income up to 5 lakhs.
Step 5: Review the amount deducted by 1st January.
Step 6: Increase or decrease the final amount and deduct it in 3 installments so that the employee is not burdened on 31st March.
Step 7: Inform the employee in the payslip of the amount deducted and the date of deposit to the IT department.
Regards,
Dr. Ram
From India, Indore
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