how to calculate tds on salaries, what is the slab rates at present?

raghu n - 2007-04-12 02:23:48 - India

please help me

Best Answer:

To calculate TDS on salary find the annual gross income including salary, remunarations, pay arrrears paid in that finacial year. from this gross total income the follwing will be deducted. 1. all providand fund subscriptions, insurance premiums, national savings payment, Ulips, House building loan pricipal, tution fees to children up to 2 child, - all up to 1 lakh 2. house rent up to certain limit 3. professional tax paid, payment to govt relief fund and registered social service trusts, major medical expenses 4. Housing loan intrest for self occupied property up to1.5 lakh 6. madiclaim policy up to 10 thousand ( employee have to submit all this withrelevent evidence copy -to be deduted -details to the employer on feb -march of every year to get deducted) the annual gross salary less above deduction is Taxable income for ths there is also basic exemption rate as per below slab . a. for men – Rs. 1.10 Lacs. b.Women (below 65 yrs of age) – Rs. 1.45 Lacs. c.Senior Citizen (above 65 yrs of age) – Rs. 1.95 Lacs are exempted from tax. Tax will be calculated at following rates:- a. if the taxable income (not the gross income) is up to exemption limit given above - there is no tax and no tds b. if it is from exemption limit to 150000 the 10% tax for excess of the exemption limit will be leved. c. for next 100000 - 20% tax d above this amount - 30% tax will be levied an addtional Education Cess @ 3% (2% up to 31-03-07) is also to be levied on total tax payable. I think it is clear to every one. Tax paying is honourable one. and tax saving within the limit is also an art of saving for ones future. any clarification in tax , tax saving art contact me in devaraj0910@yahoo.com with regards Devaraj

Answer:

Hi, the salaried guys are subject to Income tax slab. The tax deductions are as per the income earned by an employee. The Slabs in India for current year are: Rs. Up to 110000- Nil > 110000 to 150000- 10% >150000 to 250000- 20% > 250000 - 30% plus 2% Education Cess tax on total tax to be paid by you. Regards, SKG

Dear friend, answer of your is already given in a reply to the similar question asked by someone earlier. even though for your understanding i am providing you the following section 192 Salaries Exemption limits in case of Salaries. a.Individual/HUF/AOP/BOI – Rs. 1.10 Lacs. b.Women (below 65 yrs of age) – Rs. 1.45 Lacs. c.Senior Citizen (above 65 yrs of age) – Rs. 1.95 Lacs Tax will be calculated at following rates:- a. up to exemption limit given above - no tds b. from exemption limit to 150000 - 10% c. for next 100000 - 20% d above amounts - 30% Education Cess @ 3% (2% up to 31-03-07) is also to be levied on total tax payable. hope you will find it of your use. bye.

Male Net Taxable Income 0-110000 0 110001-150000 10% 150001-250000 20% 250001 and above 30% Plus Surcharge applicable for income above Rs. 10,00,000/= @ 10% on Total Tax payable Plus Education Cess applicable on income tax + Surcharge @ 3 % on Tax + Surcharge For Female Net Taxable Income 0 to 145000 0 145001 to 15000010% 150001-250000 20% 250001 and above 30% Plus Surcharge applicable for income above Rs. 10,00,000/= @ 10% on Total Tax payable Plus Education Cess applicable on income tax + Surcharge @ 3 % on Tax + Surcharge For Senior Citizen Net Taxable Income 0-195000 0 195001 to 25000020% 250001 and above 30% Plus Surcharge applicable for income above Rs. 10,00,000/= @ 10% on Total Tax payable Plus Education Cess applicable on income tax + Surcharge @ 3 % on Tax + Surcharge

The rate of tax for this A.Y. is as follows- For Gents below 65 years of age - Total Income Tax Upto 110000 Nil 110000 - 150000 10% 150000 - 250000 20% Above 250000 30% Besides there is Education Cess @3% on the tax amount and surcharge @10% on Total income above 10 Lacs For ladies the basic ceiling limit is 1450000 and for gents,who are of 65 years anytime during the financial year the exemtion limit is 190000 Tax is calculated annualy.Thereafter it is divided by 12 to arrive at monthly TDS.For more go to www.groups.yahoo.com/group/taxadvice_insurance

To calculate TDS on salary find the annual gross income including salary, remunarations, pay arrrears paid in that finacial year. from this gross total income the follwing will be deducted. 1. all providand fund subscriptions, insurance premiums, national savings payment, Ulips, House building loan pricipal, tution fees to children up to 2 child, - all up to 1 lakh 2. house rent up to certain limit 3. professional tax paid, payment to govt relief fund and registered social service trusts, major medical expenses 4. Housing loan intrest for self occupied property up to1.5 lakh 6. madiclaim policy up to 10 thousand ( employee have to submit all this withrelevent evidence copy -to be deduted -details to the employer on feb -march of every year to get deducted) the annual gross salary less above deduction is Taxable income for ths there is also basic exemption rate as per below slab . a. for men – Rs. 1.10 Lacs. b.Women (below 65 yrs of age) – Rs. 1.45 Lacs. c.Senior Citizen (above 65 yrs of age) – Rs. 1.95 Lacs are exempted from tax. Tax will be calculated at following rates:- a. if the taxable income (not the gross income) is up to exemption limit given above - there is no tax and no tds b. if it is from exemption limit to 150000 the 10% tax for excess of the exemption limit will be leved. c. for next 100000 - 20% tax d above this amount - 30% tax will be levied an addtional Education Cess @ 3% (2% up to 31-03-07) is also to be levied on total tax payable. I think it is clear to every one. Tax paying is honourable one. and tax saving within the limit is also an art of saving for ones future. any clarification in tax , tax saving art contact me in devaraj0910@yahoo.com with regards Devaraj

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