If salesmen is getting basic salary 9600 pm, da 6820 pm, hra 6568 pm, incentives 5200, reimbursement of conveyance 10511 pm
should we deduct tds from his salary
annually he is geeting
basic = 115200
da = 81840
hra= 78816
incentives= 62400
reimbursement of conveyance = 126132
HE IS ALSO PAYING RENT RS 8000 PER MONTH & ALSO SUBMIT RENT DEED.
kindly help me plz
From India, Chandigarh
should we deduct tds from his salary
annually he is geeting
basic = 115200
da = 81840
hra= 78816
incentives= 62400
reimbursement of conveyance = 126132
HE IS ALSO PAYING RENT RS 8000 PER MONTH & ALSO SUBMIT RENT DEED.
kindly help me plz
From India, Chandigarh
At the time of tds deduction you(company)shouldn't think of other side what he gives or deposit you should only think if the person is fallen under tds you must deduct the dts frequently.when the assesses present the form 16 to itr of the benfit he must find what he depost or given to govt,
thank you
ashutosh
hr gen.
From India, Delhi
19thank you
ashutosh
hr gen.
From India, Delhi
Dear Gurwin,
In short, HRA upto 1,600 p.a. is exempted beyond which it should be treated as taxable income. All other components are subject to TDS and eligible to gain upto over all exemption. Take into consideration of contributions to EPF, LIC, Mediclaim, pension if any, and other savings allowable u/s 80C, D/DD etc. You can as well use the TDS computation in Excel sheet available in many online portals provided in a convenient way by our learned members which should be of help to you in this reg. You should note there is a difference between conveyance allw. paid for to & fro from residence to office and back. Whereas reimbursements as Travelling expenses and claimed as reimbursements are not subject to TDS. Specific doubts if any you may raise here.
From India, Bangalore
In short, HRA upto 1,600 p.a. is exempted beyond which it should be treated as taxable income. All other components are subject to TDS and eligible to gain upto over all exemption. Take into consideration of contributions to EPF, LIC, Mediclaim, pension if any, and other savings allowable u/s 80C, D/DD etc. You can as well use the TDS computation in Excel sheet available in many online portals provided in a convenient way by our learned members which should be of help to you in this reg. You should note there is a difference between conveyance allw. paid for to & fro from residence to office and back. Whereas reimbursements as Travelling expenses and claimed as reimbursements are not subject to TDS. Specific doubts if any you may raise here.
From India, Bangalore
Dear Mr.Gurwin555,
In continuation of response to your query by expertise above, I have some suggestion, the tax deduction at source on salary under section 192A and 192B, that is government and non government employees. mostly, in any organisation, based on the previous year taxable income adding some percentage towards increment , DA, if any and then tentatively arrive an estimated figure for the current year annual income then deduct all the regular deductions as per previous year and calculate the current year tax as per current year slab. After arriving the tax including Cess, divide the tax by 12 months and arrive monthly tax , then start deduct from his salary of every month. Please note if the person is in the tax bracket, then act.
From India, Chennai
In continuation of response to your query by expertise above, I have some suggestion, the tax deduction at source on salary under section 192A and 192B, that is government and non government employees. mostly, in any organisation, based on the previous year taxable income adding some percentage towards increment , DA, if any and then tentatively arrive an estimated figure for the current year annual income then deduct all the regular deductions as per previous year and calculate the current year tax as per current year slab. After arriving the tax including Cess, divide the tax by 12 months and arrive monthly tax , then start deduct from his salary of every month. Please note if the person is in the tax bracket, then act.
From India, Chennai
Dear Loginmiraclelogistics,
Pls be noted the exemption of Rs. 1600/- is not related to HRA, it is actually for Conveyance Allowance. Secondly the exemption is for monthly amount and not p.a. (as mentioned by you).
Dear Gurwin555,
If the conveyance is being paid agst re-imbursement than it will not be included in his taxable income. But pls note the definition of re-imbursement carefully. Re-imbursement is said when conveyance is being paid by the employee during the course of his employment. It can be for his Tour & Travelling, local conveyance etc. The re-imbursement amount can’t be fixed on monthly basis. It should be vary every month as per actual basis. Moreover, the re-imbursement amount should not be credited with the salary account.
If the amount is fixed and being paid with monthly salary than it will be called as “Conveyance Allowance”. In such case the exemption is restricted to Rs. 1600/pm.
My advice is you can pay Rs. 1600/pm as conveyance allowance with the salary and some amount as re-imbursement basis. The re-imbursement need to be processed separately agst submission of adequate proofs and HOD approval.
In case of HRA exemption there are three criteria. You have to check the applicable criteria accordingly the HRA exemption can be given.
HRA Allowance is specifically granted to meet expenditure actually incurred on payment of rent for residential accommodation occupied and is exempt to the extent of limit:-
In case of Mumbai/Kolkata/Delhi/Chennai:- The minimum amount of the below
HRA Amount Actually Recd.
Rent Paid Less 10% of Basic Salary
50% of Basic Salary.
In case of other cities The minimum amount of the below:-
HRA Amount Actually Recd.
Rent Paid Less 10% of Basic Salary
40% of Basic Salary.
In order to reduce the Tax burden, you can include Medical Allowance (exemption of Rs. 15000/pa allowed), LTA (can be paid as per company policy). Consider the exemption under 80C (upto Rs. 1.50 L/pa).
After all deductions and exemption the TDS can be deducted as per applicable IT Rate.
Hope you will agree my points, more inputs on the matter is most welcome.
From India, Delhi
Pls be noted the exemption of Rs. 1600/- is not related to HRA, it is actually for Conveyance Allowance. Secondly the exemption is for monthly amount and not p.a. (as mentioned by you).
Dear Gurwin555,
If the conveyance is being paid agst re-imbursement than it will not be included in his taxable income. But pls note the definition of re-imbursement carefully. Re-imbursement is said when conveyance is being paid by the employee during the course of his employment. It can be for his Tour & Travelling, local conveyance etc. The re-imbursement amount can’t be fixed on monthly basis. It should be vary every month as per actual basis. Moreover, the re-imbursement amount should not be credited with the salary account.
If the amount is fixed and being paid with monthly salary than it will be called as “Conveyance Allowance”. In such case the exemption is restricted to Rs. 1600/pm.
My advice is you can pay Rs. 1600/pm as conveyance allowance with the salary and some amount as re-imbursement basis. The re-imbursement need to be processed separately agst submission of adequate proofs and HOD approval.
In case of HRA exemption there are three criteria. You have to check the applicable criteria accordingly the HRA exemption can be given.
HRA Allowance is specifically granted to meet expenditure actually incurred on payment of rent for residential accommodation occupied and is exempt to the extent of limit:-
In case of Mumbai/Kolkata/Delhi/Chennai:- The minimum amount of the below
HRA Amount Actually Recd.
Rent Paid Less 10% of Basic Salary
50% of Basic Salary.
In case of other cities The minimum amount of the below:-
HRA Amount Actually Recd.
Rent Paid Less 10% of Basic Salary
40% of Basic Salary.
In order to reduce the Tax burden, you can include Medical Allowance (exemption of Rs. 15000/pa allowed), LTA (can be paid as per company policy). Consider the exemption under 80C (upto Rs. 1.50 L/pa).
After all deductions and exemption the TDS can be deducted as per applicable IT Rate.
Hope you will agree my points, more inputs on the matter is most welcome.
From India, Delhi
Sorry, I stand corrected myself - the Exemptionof Rs.1600 p.a. in fact should be read for Conveyance Allw and not for HRA.
Some other allowances/payments exempted from IT and the maximum limit is provided in the attachment.
From India, Bangalore
Some other allowances/payments exempted from IT and the maximum limit is provided in the attachment.
From India, Bangalore
BASIC DA HRA INCENTIVE GROSS
9600 6820 6568 5200 28188
115200 81840 78816 62400 338256
a RENT PAID 96000
10% OF SAL 19704
C 76296
B 50% OF BASIC 57600
A HRA 78816
MIN OF A B C 57600
338256
LESS: HRA 57600
TAXABLE 280656
FIRST 250000
NEXT 30656 TAX 10% 3066
TAX LIABILITY 3066
LESS 87 A RELIEF 3066
NET TAX 0
AS YOU HAVE SUBMITTED THAT THE LOCAL CONVEYANCE IS REIMBURSEMENT.
HENCE HE MUST HAVE SUBMITTED THE BILLS / EXPENSES TO THAT AMOUNT THAT IS WHY IT IS NOT TAXABLE,
IN REGARDS TO CONVEYANCE ALLOWANCE ALL ARE TALKING ABOUT IS FREE UPTO RS.1600 PER MONTH
THIS ALLOWANCE IS PAID FOR ATTENDING OFFICE. OBVIOUSLY SOMEONE IS ABSENT FOR THE ENTIRE MONTH THEN THIS ALLOWANCE IS NOT PAYABLE TO HIM.
RAMAKANT
From India, Pune
9600 6820 6568 5200 28188
115200 81840 78816 62400 338256
a RENT PAID 96000
10% OF SAL 19704
C 76296
B 50% OF BASIC 57600
A HRA 78816
MIN OF A B C 57600
338256
LESS: HRA 57600
TAXABLE 280656
FIRST 250000
NEXT 30656 TAX 10% 3066
TAX LIABILITY 3066
LESS 87 A RELIEF 3066
NET TAX 0
AS YOU HAVE SUBMITTED THAT THE LOCAL CONVEYANCE IS REIMBURSEMENT.
HENCE HE MUST HAVE SUBMITTED THE BILLS / EXPENSES TO THAT AMOUNT THAT IS WHY IT IS NOT TAXABLE,
IN REGARDS TO CONVEYANCE ALLOWANCE ALL ARE TALKING ABOUT IS FREE UPTO RS.1600 PER MONTH
THIS ALLOWANCE IS PAID FOR ATTENDING OFFICE. OBVIOUSLY SOMEONE IS ABSENT FOR THE ENTIRE MONTH THEN THIS ALLOWANCE IS NOT PAYABLE TO HIM.
RAMAKANT
From India, Pune
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Responsibilitie s of person who is responsible for deduction of TDS on salary.docx
Monthly Salary Statement - CTC and TDS Calculator.xls