Annual Basic Salary Calculation
Single Person
If 1% is not specified in the payroll settings TDS 1 %
Example Calculation: Annual Basic Salary = 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.
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For Married Person
Example Calculation: Annual Basic Salary = 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.
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Applying a Female Discount (If Applicable)
Example: If the calculated tax (tds_other From payroll settings) is NPR 200,000 for a single female, the discount would be:
- Female Discount = 10% of 200,000
- Female Discount = NPR 20,000
Thus, the adjusted tax would be:
- Adjusted Tax = NPR 200,000 - NPR 20,000
- Adjusted Tax = NPR 180,000
Monthly TDS
The final TDS (monthly_tds_other from payroll settings) is calculated by dividing the annual tax by 12:
- Monthly TDS = (
$tds_other- Female Discount) / 12
So the TDS (Tax Deducted at Source) based on the user’s marital status, gender, and whether they are disabled, using different tax slabs and providing discounts where applicable. The final monthly TDS amount is returned after adjusting for any discounts.
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