At the time of making Salaries how to deduct the TDS amount, means what formula is applied for that?
From India, Delhi
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From India, Delhi
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Hi Deepika,
Before finalizing the salary amounts, it is essential to create a structured breakdown for various components such as Basic, HRA, Conveyance Allowance, Medical Allowance, and LTA. Once the split-up structure is in place, calculations for HRA exemption, tax exemption, savings, and other criteria can be accurately determined. Based on these calculations, the appropriate TDS deductions can be prepared.
Thank you.
From India, Bangalore
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653Before finalizing the salary amounts, it is essential to create a structured breakdown for various components such as Basic, HRA, Conveyance Allowance, Medical Allowance, and LTA. Once the split-up structure is in place, calculations for HRA exemption, tax exemption, savings, and other criteria can be accurately determined. Based on these calculations, the appropriate TDS deductions can be prepared.
Thank you.
From India, Bangalore
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Hi Deepika,
TDS is calculated for those employees who come under the purview of professionals or consultants. Instead of paying income tax, these individuals pay TDS. I believe the TDS to be deducted is 10.33%.
From India, Mumbai
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TDS is calculated for those employees who come under the purview of professionals or consultants. Instead of paying income tax, these individuals pay TDS. I believe the TDS to be deducted is 10.33%.
From India, Mumbai
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Hi Deepika,
The TDS is deducted after all the allowances and deductions are applied to the gross salary. Please find the Excel sheet attached. You can see for yourself how it would be calculated. Hope that helps.
Note: The salary structure is subject to change from organization to organization.
From India, Chandigarh
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The TDS is deducted after all the allowances and deductions are applied to the gross salary. Please find the Excel sheet attached. You can see for yourself how it would be calculated. Hope that helps.
Note: The salary structure is subject to change from organization to organization.
From India, Chandigarh
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Hi,
TDS on Salaries is calculated on the basis of per annum salary structure. For example, take the employee's yearly salary structure and make a deduction under Chapter VI. Work out the deduction according to the salary slab as per the Income Tax Act and calculate the average monthly deduction.
Regards,
Krishna B.
From India, Hyderabad
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TDS on Salaries is calculated on the basis of per annum salary structure. For example, take the employee's yearly salary structure and make a deduction under Chapter VI. Work out the deduction according to the salary slab as per the Income Tax Act and calculate the average monthly deduction.
Regards,
Krishna B.
From India, Hyderabad
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Dear All Seniors, I am very thankfull to u all for sharing such useful information. Really i was not aware of this TDS deduction... Regards Umesh Sr.Officer & Admin -HR
From India
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From India
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Dear All, Glad to help you. If you have any queries, please feel free to revert. Would be happy to help till I would be able to & my knowledge restricts me. Thanks, Axita
From India, Chandigarh
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From India, Chandigarh
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TDS calculated on only service contractor’s bill. (In finance language Journal Voucher) TDS should be calculated on Gross payment. TDS is only 1 % on Gross Amount. Thanks & Regards, Shyam Kaldoke
From India, Pune
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From India, Pune
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As an employer, whatever you pay to your employee during one financial year (rough estimation), calculate the aggregate amount of emoluments: Basic salary + All taxable allowances + Value of facilities + Employer's contribution to recognized PF in excess of 12% of salary + Employer's contribution to the New Pension Scheme, etc. Sometimes, the employee may provide his other sources of income, which will also be considered (but losses cannot be considered, except interest on loans taken for construction/purchases, etc). From this amount, you have to deduct the deductions of Section 80, which are applicable to the employee. After that, the amount received is the estimated salary for the financial year. Income tax will be calculated as per the prescribed rate of income tax. For male employees, the rates are as follows:
- On the first Rs. 180,000: Nil
- On the next Rs. 320,000: 10%
- On the next Rs. 500,000: 20%
- On the balance: 30%
On the calculated tax, education cess at 2% and Secondary and Higher Education Cess at 1% will be added. This amount will be rounded off to the nearest multiple of Rs. 10. This is the tax amount to be deducted by you in that particular financial year. It will be divided by 12, and one installment will be deducted every month.
Any problems can be discussed over the phone: 09461162226
Dr. C. K. Shah
From United States, Cambridge
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- On the first Rs. 180,000: Nil
- On the next Rs. 320,000: 10%
- On the next Rs. 500,000: 20%
- On the balance: 30%
On the calculated tax, education cess at 2% and Secondary and Higher Education Cess at 1% will be added. This amount will be rounded off to the nearest multiple of Rs. 10. This is the tax amount to be deducted by you in that particular financial year. It will be divided by 12, and one installment will be deducted every month.
Any problems can be discussed over the phone: 09461162226
Dr. C. K. Shah
From United States, Cambridge
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The information provided by all the members is very useful. I also have worked for 2 years in the HR department and handled all the responsibilities related to salary and wages for around 1000 employees. However, in our company, the HR manager was not responsible for TDS or any tax-related job; all of that fell under the accounts department's purview. We needed to maintain records of salaries paid in accordance with government compliance.
I hope TDS comes under the accounts department functions. Please clear the concept.
From India, Jaipur
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I hope TDS comes under the accounts department functions. Please clear the concept.
From India, Jaipur
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