Above screen shows the Employee TDS in KwikPayLite.
Important Elements of TDS:
Tax Category:
The Tax Category is of 3 types namely ‘G’ for General, ‘W’ for Women, and ‘S’ for Sr. Citizen. Select the appropriate category from the predefined list. Income Tax payable is derived based on the Tax Category.
HRA Deduction U/S 10(13A): KwikPayLite checks and decides the value of House Rent Allowance that can be claimed as deductions U/S 10(13A). As per the IT Rules (Financial Year 2007-08), the least of the following is exempted. Actual HRA PA,Excess Rent Paid,Two Fifth of Salary.
Actual Conv Allowance:
The Conveyance Allowance received for the Financial Year has to be manually entered. KwikPayLite checks and warns if this amount is more than the exemption limit fixed as per the IT Rules. The message TDS’s ‘Actual Conv Allowance’ should be Less Than or Equal to TDS’s ‘Conveyance Exemption PA’ will be displayed. The current Exemption limit is mentioned in the Business Element ‘Conveyance Exemption PA’ of this profile.
Deductible U/S 80 C:
The actual amount that can be deducted U/S 80 C. KwikPayLite will check and fix this amount to the maximum amount allowable for deduction. The maximum limit for deduction U/S 80 C is mentioned in the Business Element ‘80C Limit’ of this profile.
Deductible U/S 80 CCE:
The actual amount that can be deducted U/S 80 CCE. KwikPayLite will check and fix this amount to the maximum amount allowable for deduction. The maximum limit for deduction U/S 80 C is mentioned in the Business Element ‘80CCE Limit’ of this profile.
Income Tax:
The Income Tax payable on the Taxable Income is computed as per the Income Tax Rules for Financial Year 2007-08. The Tax Category of the employee is considered while computing the Income Tax.