Dear friends,
i have small query, if a person is getting 25000 salary and in that we are deducting esi and pf for 8500,so for balance amount of 16500 can i deduct TDS and what is the procedure and format , please kindly help me
Regards
Saleem.M
From India, Hosur
i have small query, if a person is getting 25000 salary and in that we are deducting esi and pf for 8500,so for balance amount of 16500 can i deduct TDS and what is the procedure and format , please kindly help me
Regards
Saleem.M
From India, Hosur
We can't deduct PF for Rs 8500/- and can be deduct PF wage limits upto Rs. 15000/- @12% and ESI deduct for Rs. 25000/- @ 1.75%.
As for as TDS concern
Gross taxable income for the year 2017-2018 = 25000* 12 = 300000
(if any payments other than Rs 25000 is also considered
as gross taxable income)
Less: Section 80 deduction ( Chapter VI A)
PF Recovery (15000*12% =1800*12 months) = 21600
Net taxable income = 278400
Tax computation
upto 250000 no tax = 0
from 250001 to 500000 -@10% ( 278400-250000=
28400 @10% = 2840
Cess @ 3% on total tax (2840 *3%) = 86
Total tax including cess = 2926
Total tax for the year Apr 2017 to Mar 2018 = 2926
you can deducted tax on monthly basis like 2926/12 = 244
5As for as TDS concern
Gross taxable income for the year 2017-2018 = 25000* 12 = 300000
(if any payments other than Rs 25000 is also considered
as gross taxable income)
Less: Section 80 deduction ( Chapter VI A)
PF Recovery (15000*12% =1800*12 months) = 21600
Net taxable income = 278400
Tax computation
upto 250000 no tax = 0
from 250001 to 500000 -@10% ( 278400-250000=
28400 @10% = 2840
Cess @ 3% on total tax (2840 *3%) = 86
Total tax including cess = 2926
Total tax for the year Apr 2017 to Mar 2018 = 2926
you can deducted tax on monthly basis like 2926/12 = 244
if HRA component is considered, ( break up is not provided by the post) then upto 1 lac can get exempt under HRA without any hassle, and the person comes exempt from TDS
Dear Saleem,
You can deduct PF @ 8500 if you have declared it Basic Salary. There is no problem. Recent development in PF Act has increased the limit up to 15000 only. The limit are only increased, no guidelines about criteria to fix basic salary under EPF Act.
But ESI will not be applicable in case Gross Salary (Rs 25000) has crossed the current limit which is Rs 21000/- PM.
For TDS deduction, above suggestion are valuable and to be kept in mind.
From India
You can deduct PF @ 8500 if you have declared it Basic Salary. There is no problem. Recent development in PF Act has increased the limit up to 15000 only. The limit are only increased, no guidelines about criteria to fix basic salary under EPF Act.
But ESI will not be applicable in case Gross Salary (Rs 25000) has crossed the current limit which is Rs 21000/- PM.
For TDS deduction, above suggestion are valuable and to be kept in mind.
From India
EPF contribution will be on Basic and DA. If DA not paid, it is only on Basic. Then again "Basic" has a wider meaning and does not mean the component "Basic" only. "Basic Wages " means all emoluments which are earned by an employee , of course with certain exclusion such as HRA, OT allowance, bonus, commission or any other similar allowance.
Hence, a decision to pay contribution on Basic only ( if DA is not in practice) and then later on if there is any demand for payment on certain other allowances also, would end up in liability of both the shares of contribution.
Hence, the advice is to consult with a person who has got better knowledge by showing the wage/salary structure what you have and arrive at a proper decision .
P. Willington Jebraraj
Hence, a decision to pay contribution on Basic only ( if DA is not in practice) and then later on if there is any demand for payment on certain other allowances also, would end up in liability of both the shares of contribution.
Hence, the advice is to consult with a person who has got better knowledge by showing the wage/salary structure what you have and arrive at a proper decision .
P. Willington Jebraraj
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TDS circular.pdf
Format--new TDS rates.xls
BASICS OF TDS ON SALARY-1.doc