Meronetwork Payroll Salary Calculation

Please adjust your tax slab by going to Master Configuration > HR Configuration > Tax Slabs. As government tax policy may changes every year.

For Single Unmarried Person

If 1% is not specified in the payroll settings TDS 1 %

Example: Salary of Ram  = NPR 1,500,000
NPR 0 - 500,000:
No tax.
Tax = NPR 0.

NPR 500,001 - 700,000:
Tax = 10% of (700,000 - 500,000)
Tax = 10% of 200,000
Tax = NPR 20,000.

NPR 700,001 - 1,000,000:
Tax = 20% of (1,000,000 - 700,000)
Tax = 20% of 300,000
Tax = NPR 60,000.

NPR 1,000,001 - 1,500,000:
Tax = 30% of (1,500,000 - 1,000,000)
Tax = 30% of 500,000
Tax = NPR 150,000.

Total Tax for NPR 1,500,000 = NPR 0 + NPR 20,000 + NPR 60,000 + NPR 150,000 = NPR 230,000.

For Married Person 

Salary of Shyam = NPR 1,500,000
NPR 0 - 600,000:
No tax.
Tax = NPR 0.

NPR 600,001 - 800,000:
Tax = 10% of (800,000 - 600,000)
Tax = 10% of 200,000
Tax = NPR 20,000.

NPR 800,001 - 1,100,000:
Tax = 20% of (1,100,000 - 800,000)
Tax = 20% of 300,000
Tax = NPR 60,000.

NPR 1,100,001 - 1,500,000:
Tax = 30% of (1,500,000 - 1,100,000)
Tax = 30% of 400,000
Tax = NPR 120,000.

Total Tax for NPR 1,500,000 = NPR 0 + NPR 20,000 + NPR 60,000 + NPR 120,000 = NPR 200,000.

Note: 

1. Meronetwork Payroll Engine Calculates TDS based on the tax slabs. There are two components: tds_1 which is a fixed percentage (1%) of the annual basic salary, and tds_other which is calculated based on the slabs.
2.  Tax slabs is based on the annual basic salary and marital status.
3. If the annual basic salary exceeds the highest slab, it applies additional TDS based on the remaining amount.