TDS for Indian Payroll – For Professionals

This is the second part of the Master-course on TDS for Indian payroll. In the earlier part, we have studied the basic concepts used in Income tax, the basic methodology of computing the tax on income of an employee, and taken an overview of the process of filing returns with the income tax department as a statutory compliance requirement for a payroll department

In this course, let’s discuss the practical implications of the various provisions of the income tax act required for processing payroll for Indian employees. This course is focused on giving a detailed overview of the various provisions of the income tax act pertaining to the computation of gross income, deductions, exemptions, net taxable income, and also the tax to be deducted from the salary of an employee.

The course is divided into four sections. The first section deals with taking a recap of the concepts learned during the previous part of the course. The second section deals with computing the gross annual income of the employee considering various components of the salary, from the point of view of the income tax act. The third section deals with various deductions and methodologies to compute the net taxable income and income tax to be deducted from the salary. The fourth section deals with the detailed procedure of filing returns using challan 281 on monthly basis and using Form 24Q on a quarterly basis.

By the end of this course, the learners are expected to:

a) Describe the applicability of the provisions of Income-tax Act to salaried taxpayers

b) Explain the computation methodology to be applied in some more complex cases as compared to the first course

c) Compute the tax due from employees considering the concepts learned so far and,

d) File returns using Challan 281 and Form 24Q with the details computed