About TDS?
Answers:
The mediclaim nobody will pay 30thousand per year . pl check it again. it may be life insurance premium.
any how being a senior citizen, his annual income is below 1,95 000. so he is exempted from tax. no TDS applicable to him.
here is a simple way.. to find TDS to any body.
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.
the yearly payable tax amount is equaly divided in to 12 and deducted as TDS.
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
To work out the eaxact tax liability Following needs to be clarified.:
1) What is the amount of Basic out of 10725/=
2) Where does the gentelman staying in Mumbai, Kolkata, New Delhi, Chennai or at other place ? This is required to work out House Rent exemption.
3) Exemption for Mediclaim for Senior citizen is Rs.20000/=. Just check whether he is paying 30000/= as medicalim or for any other LIC policy?
4) The working is required for which year 2007-2008 ? or 2006-2007 ?
Once the above are cleared, one can work out tax.
You can send your details at amit2861@yahoo.co.in
Salary @ Rs 16000 per month? which comes to Rs 1,92,000
Without going into detail, the person concerned is senior citizen , so no tax will be paid by him .No need of TDS.
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