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For Employees on Payrol,TDS is deducted as per income Tax Slab Rate

INCOME

TAX

UPTO 250000

0

250000-500000

10% of (Income-250000)

5000001-1000000

20% of (Income-500000)+25000

>1000000

30% of (Income-1000000)+125000

 There is Rebate of 2000 5000 also if Income between 250000-500000 


New Slab Rate from 1 April 2017

INCOME TAX
UPTO 250000 Nil
250000-500000 5% of Income Greater than 250000
500000-1000000 20% of Income Greater than 500000+12500
>1000000 30% of Income Greater than 1000000+112500

There is Rebate of 2500 also if Income between 250000-350000

(Applicable for ITR of Financial Year 2017-18 (AY 2018-19)
Also applicable for Payroll from 1 April 2017


 

 

 

Example 1

Suppose an Employee gets a Salary of 15000 per month.

What is Income Tax Payable by him?

View Answer

Example 2

Suppose an Employee gets a Salary of 35000 per month.

What is Income Tax Payable by him?

View Answer

Example 2 Continue

What is monthly TDS to be deducted in this case?

View Answer

 

Example 3

Suppose an Employee gets a Salary of 75000 per month.

What is Income Tax Payable by him?

View Answer

Example 3 Continued

What is monthly tax to be deducted in this case?

View Answer

 

 

Assignment

Complete the following table in Excel

 

             

MONTHLY SALARY

10000

25000

40000

50000

100000

22000

ANNUAL SALARY

 

 

 

 

 

 

TAX

 

 

 

 

 

 

REBATE

 

 

 

 

 

 

NET TAX

 

 

 

 

 

 

CESS

 

 

 

 

 

 

TAX+ CESS

 

 

 

 

 

 

MONTHLY TDS

 

 

 

 

 

 

NET SALARY

 

 

 

 

 

 

 

DOWNLOAD AND TRY 

View Answer
  1. Tax Practical
  2. Practical Payroll (TDS Salary,PF,ESI)
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About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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