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
From India, New Delhi
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 ceiling equivalent to HRA
3) Interest on Housing loan subject to ceiling Rs. 1,50,000.
4) Refund on Housing loan, savings, tution fee to 2 children etc. altogether subject to ceiling Rs.100,000.
5) In addition savings on infrastructure bonds upto Rs. 20,000.
5) Other than the above one lakh, 15000 to 20000 towards medi claim premium, 40000 to 60000 towards treatment on specified diseases like Motor Neuron disease, 75000 to 100,000 towards disabilty etc. are also admissible for deduction.
Now taxable income can be calculated as follows.
Gross salary - total deductions = Taxable income
Tax payee can be categorised into 3.
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% upto Rs.5,00,000, 20% there after upto 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 shall quote on 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 next 340000 (500000-160000), 340000x10% = 34000 -(1)
For next 300000 (800000-500000), 300000x20% = 60000 -(2)
For next 68000 (868000-800000), 68000x30%= 20400 -(3)
Tax - (1)+(2)+(3) = 114400
Also For Non Senior Female Tax is, 114400-3000 = 110400
and 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 green colour column. Results will be occured in yellow colour. The red colour is used for static datas.
ABBAS.P.S,
Secretary,
ITI Employees' Association ,
ITI Ltd, PALAKKAD - 678 623,
KERALA, INDIA.
Ph. +91 9447 467 667
From India, Bangalore
517I 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 ceiling equivalent to HRA
3) Interest on Housing loan subject to ceiling Rs. 1,50,000.
4) Refund on Housing loan, savings, tution fee to 2 children etc. altogether subject to ceiling Rs.100,000.
5) In addition savings on infrastructure bonds upto Rs. 20,000.
5) Other than the above one lakh, 15000 to 20000 towards medi claim premium, 40000 to 60000 towards treatment on specified diseases like Motor Neuron disease, 75000 to 100,000 towards disabilty etc. are also admissible for deduction.
Now taxable income can be calculated as follows.
Gross salary - total deductions = Taxable income
Tax payee can be categorised into 3.
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% upto Rs.5,00,000, 20% there after upto 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 shall quote on 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 next 340000 (500000-160000), 340000x10% = 34000 -(1)
For next 300000 (800000-500000), 300000x20% = 60000 -(2)
For next 68000 (868000-800000), 68000x30%= 20400 -(3)
Tax - (1)+(2)+(3) = 114400
Also For Non Senior Female Tax is, 114400-3000 = 110400
and 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 green colour column. Results will be occured in yellow colour. The red colour is used for static datas.
ABBAS.P.S,
Secretary,
ITI Employees' Association ,
ITI Ltd, PALAKKAD - 678 623,
KERALA, INDIA.
Ph. +91 9447 467 667
From India, Bangalore
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 9600/- as conveyance
3. HRA - Exemption is based on the Rent paid by employee
The exemption is calculated as per below:
a) Actual HRA Received
b) 40% of Basic salary - 50% incase of Delhi, Mumbai, Calcutta & Chennai
c) Rent paid - 10% of Basic salary
Out of the above which ever is least would be exempt from tax & should be reduced from taxable income.
3A. In case Medical Reimbursement is part of the salary structure - based on the submission of receipts, 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 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 seprate calculation. Employee should disclose how much rent is received from that property and then arrive at the Income/(Loss) from house property.
Thanks
Showri
From India, Faridabad
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 9600/- as conveyance
3. HRA - Exemption is based on the Rent paid by employee
The exemption is calculated as per below:
a) Actual HRA Received
b) 40% of Basic salary - 50% incase of Delhi, Mumbai, Calcutta & Chennai
c) Rent paid - 10% of Basic salary
Out of the above which ever is least would be exempt from tax & should be reduced from taxable income.
3A. In case Medical Reimbursement is part of the salary structure - based on the submission of receipts, 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 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 seprate calculation. Employee should disclose how much rent is received from that property and then arrive at the Income/(Loss) from house property.
Thanks
Showri
From India, Faridabad
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