Latest Articles

Services to Prioritize When Planning Your Home Renovation

Planning a home renovation can be an exciting but complex task. Whether you’re updating a kitchen, adding a new room, or completely transforming your...

Everything You Need to Know About HVAC and Air Conditioning Systems

In both residential and commercial buildings, maintaining a comfortable indoor environment year-round is essential. Heating, Ventilation, and Air Conditioning (HVAC) systems are central to...

How to Register as an NDIS Provider: The Complete Guide

Why Register as an NDIS Provider? Understanding the Value Behind the Registration The National Disability Insurance Scheme (NDIS) was built on the promise of empowering Australians...

Frequently Asked Questions Before You Buy Armodafinil UK Online

Are you thinking about buying Armodafinil for better focus, longer alertness, or higher productivity? You are not alone. Many people across the UK are...

Big City Energy, Lazy Sunday Feel: The Essentials Hoodie & Tracksuit Taking Over Aussie Streets

Australia’s streetwear scene is evolving fast — but comfort still reigns king. Enter the must-haves making noise from Bondi to Brunswick: the Essentials Hoodie...

5 Factors To Consider When Hiring A Lawyer For Your Workplace Injury

Suffering a workplace injury can be physically, emotionally, and financially overwhelming. While some cases may seem straightforward, navigating legal claims, insurance policies, and employer...

Classic Masoor Dal Recipe: A Hearty and Flavorful Indian Lentil Dish

What does a person think of when visualising a comfort food? For many Indians, the masoor dal recipe comes to mind. Shopping for groceries...

Discover the Tranquil Charm of the Himalayas: Top Luxury Resorts and Homestays in Binsar, Uttarakhand

Tucked away in the serene lap of the Kumaon hills, Binsar in Uttarakhand is one of the most peaceful and scenic destinations in northern...

Experience Royalty Redefined at Narendra Bhawan: A Luxury Resort in Bikaner Rajasthan

Nestled in the heart of the desert city, Narendra Bhawan Bikaner stands as a beacon of luxury, heritage, and unmatched hospitality. Once the grand...

Karan Johar’s The Traitors India Turns Suryagarh Palace into a Battlefield of Trust and Treachery

India’s entertainment landscape has just been shaken by a fresh wave of psychological warfare, betrayal, and gripping suspense. With The Traitors India, Prime Video...

Are Toners Necessary? Skincare Experts Weigh In

If you’ve ever stood in the skincare aisle wondering whether a toner is something your skin really needs, you’re not alone. With so many...

Patient Lift Devices: Choosing the Best Type for Your Needs

Whether at home or in a long-term care center, caring for someone with mobility challenges involves ensuring safe and comfortable movement, making patient lifts...

Robotic Pool Cleaners: Your Path to a Sparkling Oasis

When we think about maintaining a clean environment, our minds often jump to dusting, vacuuming, and scrubbing. But whether it's the shimmering surface of...

Essential Gym Clothes Men Need in Australia

Introduction to Mens Gym Clothing in Australia When it comes to fitness and an active lifestyle, the right mens gym clothes play a significant role...

5 Best Upgrades to Protect Your Home from the Elements in Style

Home isn’t just where you relax after a long day; it’s your haven from the unpredictable elements. Whether it’s a fierce storm, scorching summer...
HomeBusinessHow To Calculate TDS on Salary Under Section 192 of Income Tax...

How To Calculate TDS on Salary Under Section 192 of Income Tax Act

If you are a working professional or a pensioner then you must have heard about the term TDS which is an acronym for tax deduction at source. Section 192 of Income Tax act is directly related to the TDS on your salary. 

The remuneration you receive from your employer can be considered as your income. Thus you are required to pay a certain amount of tax from your salary as income tax to the government. All the information related to TDS deduction can be found on Form 16 which will be given to you by your employer in every financial year.

How to calculate TDS on salary

Here, we will look at two different types of examples in order to figure out how you can calculate TDS under section 192 of Income Tax act.

Example 1

Suppose a person named Alex is working for a company named XYZ Ltd. and his salary is Rs. 90000 per month. In this case, we will be trying to calculate his TDS for the 2022-23 financial year. Let us assume that Alex has invested Rs. 80000, Rs. 100000 in the ELSS fund and Rs. 120000 in EPF.

His estimated total income for the current financial year is Rs. 1080000. A standard deduction of Rs. 50000 is generally allowed for every salaried individual. According to chapter VI A, we can also deduct Rs. 150000.

  • Calculation of TDS for Alex:
Total salaryRs. 1080000
Standard deduction amountRs. 50000
Deduction according to Chapter VI ARs. 150000
Total Taxable incomeRs. 880000

Tax applicable as per the slab rates:

0 to Rs 2.5 lakhNil
Rs 2.5 lakh to Rs 5 lakh – 5%Rs. 44000
Rs 5 lakh to Rs 10 lakh – 20%Rs. 176000
Cess – 4%Rs. 8800

The total amount of tax is Rs. 228800

Now for the twelve months in the current financial year, the TDS deduction under section 192 of Income Tax act will be Rs. 228800/12 = Rs. 19066.66 per month.

Section 192 of the Income Tax act is applicable to every salaried income including pensions.

Example 2

Suppose Henry is a retired individual who receives a pension of Rs. 40000 every month and also has savings account through which he has received Rs. 20000 interest in the 2022-23 financial year. 

According to section 192 of IT act, TDS deduction will be applicable on every financial payment that comes under the salary category. Pensions come under the salary category which is why TDS is also applicable in this case.

  • Calculation of TDS for Henry:

Total salary –    

Pension –                                                                                Rs. 480000                                                                       

Standard deduction amount –                                              Rs. 50000

Total income from salary –                                                    Rs. 430000

Income from savings account –                                            Rs. 20000

Income from other sources – 

Total Taxable income –                                                           Rs. 450000

Tax applicable as per the slab rates:

0 to Rs 3 lakh – Nil

Rs 3 lakh to Rs 5 lakh – 10%                                                 Rs. 45000

Rs 5 lakh to Rs 10 lakh – 20%                                               

Rebate under Section 87A – (up to Rs. 12500)                     Rs. 12500

The total amount of tax is Rs. 32500

The total amount of TDS Henry will have to pay is Rs. 32500/12 = 2708.33 per month.

Various factors included in the calculation of taxable income?

It is the employer’s responsibility to deduct the income tax from their employee’s salary and then deposit it into the government’s account. At the beginning of every financial year, the company or employer evaluates the salary of every individual employee. 

The employee’s salary includes things like a dearness allowance, house rent allowance, basic pay, bonus, contributions to the employee provident fund, meal coupons, perquisites granted by the employer, etc. 

After the evaluation of individual employees’ salaries has been completed, the employer then estimates the exemptions the employee will be entitled to under section 10 of the Income Tax act. Employees can receive exemptions on the following allowances

  • Children’s education allowance
  • Travel expense
  • House rent allowance
  • Uniform expense
  • Entertainment allowance

The company or employer also needs to deduct the professional tax paid by the employee along with the Rs. 50,000 standard deductions. After deducting all the above-mentioned allowances from the total monthly income of the employee, the remaining amount will be considered taxable salary income.

In case the employee discloses income from other sources such as income generated by bank deposits, rental income from real estate, etc. then it should also be added to the total taxable salary of the employee. 

More importantly, if there is no income from the employee’s property or the income from rent balances the interest paid because of the housing loan then a negative figure should be added to the ‘income from house property’ category. After deducting or adding the entire amount the employee’s total income should be calculated.

To conclude

Section 192 of Income Tax act helps employers and companies evaluate how much money they are obligated to deduct from their employee’s salaries while the government also benefits from it by receiving the taxes at regular intervals. Furthermore, the tax burden of every individual is lessened when the TDS is deducted regularly from their income.

READ ALSO:

5 Different Styles of Kitchen Island Range Hoods for Your Unique Kitchen Design / Small Patio Decoration Ideas to Turn Your Deck into an Outdoor Retreat / How to Buy Paint by Number? Great Deals in London / How To Calculate TDS on Salary Under Section 192 of Income Tax Act / Everything You Need to Know About School Expulsion

Can You Really Get Urgent Loans with No Credit Check? / Steps to Take Right Now for Your Privacy / How to print and cut stickers on Cricut / How to apply to Die cut stickers / Best Forex Trading Platforms with Low Spread

Something you want to wear that is transcendent? Go for a gold pendant!!  / How To Transform an Unused Room Into the Perfect Toddler Room? / How to apply to Die cut stickers / 4 Facts to Know About Shingle Roofing / How to Choose the Best Mobile Point of Sale System?

Why you should use fuel cards for business fleets / How to attract tenants / Family Friendly Fall Activities  / Payback Ltd Review – Is There Professionalism Their Strength? / Who Are Debt Settlement Attorneys and How Can They Help?

4 Reasons Why You Need a Commercial Locksmith For Your Business in Las Vegas / Service provider Philo Launches App Specifically for Samsung Smart TVs / The simplest way to Watch Movies Online For Free / How to Download TikTok Videos? Here are the Free, Easiest Ways! / Hollywood Celebrities

Trending

Split System Service in Melbourne: Ensuring Year-Round Comfort

Introduction Melbourne, the cultural hub of Australia, is known for its unpredictable weather. From scorching summer days to chilly winter nights, residents rely on their...

6 Ways A Bookkeeping Software Helps Businesses In UK

Businesses need a lot of hard work to keep their business competitive and compliant with the market response. For this they need...

The Revolutionary Potential of 3D Printing: From Concept to Creation

Introduction In the realm of manufacturing and innovation, few technologies have garnered as much attention and excitement as 3d printing solutions. Also known as additive...

What You Need To Know About Appliance Repair

Home appliance repair is a process that involves servicing and restoring home appliances for future use. Considering the different models and brands of home...

Keeping Cool in the Desert: A Comprehensive Guide to AC Service in Dubai

Dubai is a city that mostly relies on air conditioning to provide relief from the intense heat because of its blistering desert climate. Summertime...

What Are The Legal Rights of A Truck Accident Victim?

Truck accidents can be devastating and result in serious injuries or even death. If you or a loved one has been involved in a...

What Is THC Vape Juice & How To Use It?

As cannabis legalization sweeps the nation, more and more people are looking for ways to enjoy the plant's many benefits. THC vape juice is...

2022 Tissot PRX timer Models | WatchUSeek Watch Forums

Tissot is breaking out the large guns and increasing the success of its PRX watch assortment, that originally born last year.First Tissot launched a Swiss quartz version of the PRX in February 2021, followed...

Buy Twitter Followers: Boosting Your Social Media Game

In the fast-paced world of social media, the number of followers on platforms like Twitter can make or break your online presence. In this...

Why Professional Roof Cleaning is Essential

Are you neglecting your roof? Perhaps you think it's just an aesthetic issue or a minor inconvenience. But the truth is, ignoring regular roof...