Key Points
It is dependent upon the total estimated taxable income of the employee in the relevant financial year, among other factors...
According to Suresh Surana, founder, RSM India, a tax and business consulting group, "As per section 192 the amount of income-tax to be deducted shall be computed on the basis of the rates in force for the financial year in which the payment is made, based on the estimated income of the employee for the year."..
ParticularsOld Tax RegimeNew Tax RegimeBasic SalaryxxxxxxxxAdd: Allowances (HRA,LTA, etc)xxxxxxLess: exemptions for allowances (HRA, LTA, etc)(xx)No exemptionGross SalaryxxxxxxxxLess: Standard deduction(xx)(xx)Less: Professional tax paid(xx)No exemptionNet Salary income chargeable to taxxxxxxxxxIncome from other sources-Capital gains--Income from house property--Less: Deductions (as declared to employer)(xx)Only section 80CCD(2) deduction availableTotal taxable incomexxxxxxxxEstimated tax liability for the year (A)xxxxxxTDS to be deducted under section 192 (A/12)xxx/12 months= Rs xxxxxx/12 months= Rs xxx..
Particulars AmountEstimated Total IncomeRs 7,60,000Estimated Tax LiabilityRs 64,500Add : Health & education cess @ 4% on Rs. 64,500Rs 2,580Estimated Total Tax Liability (A)Rs 67,080TDS per month (A/12 months)Rs 5,590Salary per monthRs 80,000Less :- TDS per month (As calculated above)Rs 5,590Net salary in hand of the employeeRs 74,410..
Actual tax saving investments made during the year by the employee might change as compared to declarations submitted at the beginning of the financial year,Any Increment / Bonus received by the employee which was otherwise not forming a part of total compensation,Revision in the salary structure of the employee such as change in the allowances, perquisites provided to the employee,Employee switching jobs in between the financial year...
