Sir,
In payroll, how do we calculate TDS and the deductions? Are there any exemptions for HRA, and if so, what is the percentage? Additionally, what percentage of rent, LIC, and other expenses can be deducted?
Is there a specific tax slab for males and females, and if so, what is the exemption percentage from the slab? I am quite confused about TDS. I have asked this question before but have not received a response.
Thank you,
Jagan
From India, Pune
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5In payroll, how do we calculate TDS and the deductions? Are there any exemptions for HRA, and if so, what is the percentage? Additionally, what percentage of rent, LIC, and other expenses can be deducted?
Is there a specific tax slab for males and females, and if so, what is the exemption percentage from the slab? I am quite confused about TDS. I have asked this question before but have not received a response.
Thank you,
Jagan
From India, Pune
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Hi Jagan,
You already raised a query on TDS which was answered in this link- https://www.citehr.com/605759-tds.html. Also, go through this link- https://www.citehr.com/305844-how-do...alary-xls.html.
So far as HRA exemption is concerned, the formula for exemption is as follows: Least of any of the following amounts qualify for the exemption limit for HRA received by the employee: If Rent paid is Rs.5,000/- per month = 60,000 p.a.
i) HRA Received (say for example Rs.48,000 p.a. @ 4,000 p.m.) = 48,000
ii) Rent paid in excess 10% of salary = 60,000-36,000 = 24,000 (If total salary is Rs.3,60,000 p.a. @ Rs.30,000 p.m. then 10% thereof works out to Rs.36,000/-)
iii) 50% (in respect of metro cities Delhi, Mumbai, Kolkata, Chennai) 40% (in respect of other cities) For Pune it's 40% = 1,40,000
The least of the above i, ii, iii is Rs.24,000. Therefore, HRA exemption eligible here is Rs.24,000/- p.a. Also, you can use the attached worksheet to compute the HRA exemption limit.
Savings towards EPF, LIC premium, PPF, Investment in NSC, and other approved items will qualify for a maximum of Rs.1,50,000 for the Financial year 2018-19.
For the Financial year 2018-19, there is no separate limit for Female salaried employees. The following slabs will apply for both male and female employees:
Income Tax Slab Rate for AY 2018-19 for Individuals:
1.1 Individual (resident or non-resident), who is of the age of less than 60 years on the last day of the relevant previous year:
Taxable income Tax Rate
Up to Rs. 2,50,000 Nil
Rs. 2,50,000 to Rs. 5,00,000 5%
Rs. 5,00,000 to Rs. 10,00,000 20%
Above Rs. 10,00,000 30%
1.2 Resident senior citizen, i.e., every individual, being a resident in India, who is of the age of 60 years or more but less than 80 years at any time during the previous year:
Taxable income Tax Rate
Up to Rs. 3,00,000 Nil
Rs. 3,00,000 - Rs. 5,00,000 5%
Rs. 5,00,000 - Rs. 10,00,000 20%
Above Rs. 10,00,000 30%
1.3 Resident super senior citizen, i.e., every individual, being a resident in India, who is of the age of 80 years or more at any time during the previous year:
Taxable income Tax Rate
Up to Rs. 5,00,000 Nil
Rs. 5,00,000 - Rs. 10,00,000 20%
Above Rs. 10,00,000 30%
Plus: Surcharge: 10% of tax where total income exceeds Rs. 50 lakh 15% of tax where total income exceeds Rs. 1 crore Education cess: 3% of tax plus surcharge
Note: A resident individual is entitled to a rebate u/s 87A if his total income does not exceed Rs. 3,50,000. The amount of the rebate shall be 100% of income-tax or Rs. 2,500, whichever is less.
Income Tax Rates for HUF/AOP/BOI/Any other Artificial Juridical Person:
Taxable income Tax Rate
Up to Rs. 2,50,000 Nil
Rs. 2,50,000 to Rs. 5,00,000 5%
Rs. 5,00,000 to Rs. 10,00,000 20%
Above Rs. 10,00,000 30%
Plus: Surcharge: 10% of tax where total income exceeds Rs. 50 lakh 15% of tax where total income exceeds Rs. 1 crore Education cess: 3% of tax plus surcharge.
From India, Bangalore
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You already raised a query on TDS which was answered in this link- https://www.citehr.com/605759-tds.html. Also, go through this link- https://www.citehr.com/305844-how-do...alary-xls.html.
So far as HRA exemption is concerned, the formula for exemption is as follows: Least of any of the following amounts qualify for the exemption limit for HRA received by the employee: If Rent paid is Rs.5,000/- per month = 60,000 p.a.
i) HRA Received (say for example Rs.48,000 p.a. @ 4,000 p.m.) = 48,000
ii) Rent paid in excess 10% of salary = 60,000-36,000 = 24,000 (If total salary is Rs.3,60,000 p.a. @ Rs.30,000 p.m. then 10% thereof works out to Rs.36,000/-)
iii) 50% (in respect of metro cities Delhi, Mumbai, Kolkata, Chennai) 40% (in respect of other cities) For Pune it's 40% = 1,40,000
The least of the above i, ii, iii is Rs.24,000. Therefore, HRA exemption eligible here is Rs.24,000/- p.a. Also, you can use the attached worksheet to compute the HRA exemption limit.
Savings towards EPF, LIC premium, PPF, Investment in NSC, and other approved items will qualify for a maximum of Rs.1,50,000 for the Financial year 2018-19.
For the Financial year 2018-19, there is no separate limit for Female salaried employees. The following slabs will apply for both male and female employees:
Income Tax Slab Rate for AY 2018-19 for Individuals:
1.1 Individual (resident or non-resident), who is of the age of less than 60 years on the last day of the relevant previous year:
Taxable income Tax Rate
Up to Rs. 2,50,000 Nil
Rs. 2,50,000 to Rs. 5,00,000 5%
Rs. 5,00,000 to Rs. 10,00,000 20%
Above Rs. 10,00,000 30%
1.2 Resident senior citizen, i.e., every individual, being a resident in India, who is of the age of 60 years or more but less than 80 years at any time during the previous year:
Taxable income Tax Rate
Up to Rs. 3,00,000 Nil
Rs. 3,00,000 - Rs. 5,00,000 5%
Rs. 5,00,000 - Rs. 10,00,000 20%
Above Rs. 10,00,000 30%
1.3 Resident super senior citizen, i.e., every individual, being a resident in India, who is of the age of 80 years or more at any time during the previous year:
Taxable income Tax Rate
Up to Rs. 5,00,000 Nil
Rs. 5,00,000 - Rs. 10,00,000 20%
Above Rs. 10,00,000 30%
Plus: Surcharge: 10% of tax where total income exceeds Rs. 50 lakh 15% of tax where total income exceeds Rs. 1 crore Education cess: 3% of tax plus surcharge
Note: A resident individual is entitled to a rebate u/s 87A if his total income does not exceed Rs. 3,50,000. The amount of the rebate shall be 100% of income-tax or Rs. 2,500, whichever is less.
Income Tax Rates for HUF/AOP/BOI/Any other Artificial Juridical Person:
Taxable income Tax Rate
Up to Rs. 2,50,000 Nil
Rs. 2,50,000 to Rs. 5,00,000 5%
Rs. 5,00,000 to Rs. 10,00,000 20%
Above Rs. 10,00,000 30%
Plus: Surcharge: 10% of tax where total income exceeds Rs. 50 lakh 15% of tax where total income exceeds Rs. 1 crore Education cess: 3% of tax plus surcharge.
From India, Bangalore
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