I want to know the TDS deduction if the package is 6 LPA then how TDS will be deducted,it is for gross CTC or applied only on basic salary Please explain Akshay Kaushal
From India, Indore
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From India, Indore
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Dear Akki,
I have a detailed post ready here for your reference:
The 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 help you understand how 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) Additionally, savings on infrastructure bonds up to Rs. 20,000.
6) Apart from the above, deductions of one lakh, 15000 to 20000 towards medi-claim premium, 40000 to 60000 towards treatment for specified diseases like Motor Neuron disease, 75000 to 100,000 towards disability, etc., are also admissible for deduction.
The 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 & 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 @ 3% will be charged on Total Tax.
I will illustrate with 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)
Total 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
Please refer to the Excel Sheet. Enter the gross salary and applicable deductions/savings in the green color column. Results will be displayed in the yellow color. The red color is used for static data.
Regards,
Janardan
From India, Mumbai
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92I have a detailed post ready here for your reference:
The 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 help you understand how 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) Additionally, savings on infrastructure bonds up to Rs. 20,000.
6) Apart from the above, deductions of one lakh, 15000 to 20000 towards medi-claim premium, 40000 to 60000 towards treatment for specified diseases like Motor Neuron disease, 75000 to 100,000 towards disability, etc., are also admissible for deduction.
The 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 & 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 @ 3% will be charged on Total Tax.
I will illustrate with 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)
Total 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
Please refer to the Excel Sheet. Enter the gross salary and applicable deductions/savings in the green color column. Results will be displayed in the yellow color. The red color is used for static data.
Regards,
Janardan
From India, Mumbai
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