I need your help out here for TDS calculation under two scenarios.
One of my employees is eligible for a yearly guaranteed bonus of Rs. 2 Lakhs (eligible under which he should work for a continuous year, which will be effective this month, and this is the first month of eligibility), along with his monthly gross of Rs. 1 Lakh. Now the situation from the employee's concern is that he wants the same amount to be credited to his account as salary itself, which would be around 12 lakhs per annum to avoid more TDS deduction. Hence, the management wants me to provide them with the calculation for 14 lakhs per annum under one scenario.
TDS calculation for Rs. 12 lakhs + 2 lakhs variable. Here is where I'm getting confused about what the actual calculation would be. Please help me with this.
From India, Chennai
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7One of my employees is eligible for a yearly guaranteed bonus of Rs. 2 Lakhs (eligible under which he should work for a continuous year, which will be effective this month, and this is the first month of eligibility), along with his monthly gross of Rs. 1 Lakh. Now the situation from the employee's concern is that he wants the same amount to be credited to his account as salary itself, which would be around 12 lakhs per annum to avoid more TDS deduction. Hence, the management wants me to provide them with the calculation for 14 lakhs per annum under one scenario.
TDS calculation for Rs. 12 lakhs + 2 lakhs variable. Here is where I'm getting confused about what the actual calculation would be. Please help me with this.
From India, Chennai
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Hi Amal,
TDS will be calculated from 1st April to 31st March of every year. If he joined in the month of Feb '18, then you need to calculate Feb & March salary for this year IT, and the balance 10 months will be calculated in the next year. If you are paying a bonus after one year, then you need to consider the bonus amount in the next year as his earnings.
TDS will be calculated considering other provisions of the act, for example, HRA, 80C savings, medical insurance, housing loan, etc.
Best Regards,
Praveen Bhosale
Email: praveenbhosale1@gmail.com
From India, Bangalore
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TDS will be calculated from 1st April to 31st March of every year. If he joined in the month of Feb '18, then you need to calculate Feb & March salary for this year IT, and the balance 10 months will be calculated in the next year. If you are paying a bonus after one year, then you need to consider the bonus amount in the next year as his earnings.
TDS will be calculated considering other provisions of the act, for example, HRA, 80C savings, medical insurance, housing loan, etc.
Best Regards,
Praveen Bhosale
Email: praveenbhosale1@gmail.com
From India, Bangalore
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Salary with TDS Calculation-Fin al Amended for net.xls
TDS Calculation.doc x