Hr Professional With 8 Years Of Exp.
Manager - Ops., Training & Quality
Accounts & Administration, Tax
+3 Others

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Hi Guys,
Its that time of the year again!! :P
I'm very new to Income Tax/ calculations. Is there anybody out here who can lend a helping hand, it would be really great.
Once i get a response i'll share the specific query i have.

Post your query first. some will definitely endeavour to respond appropriately.-----------------------------------------------------------------------------------------------------------------------------------------------

Hi Vineeta, Please share your query first and you will definitely find some answers depending upon the query. That’s why we are here and purpose of this forum.
With reference to the attached salary break up, The queries are -
- how much is the taxable income in this salary? (how do u calculate it?)
- how much income tax will be deducted with AND without saving/investment??
- would PF be considered as an investment under 80 C?

Attached Files
File Type: docx SALARY.docx (14.9 KB, 334 views)

HRA - 50% basic in metros or 40% in non-metros. The actual rent paid or HRA (whichever is lower) minus 10% of basic is tax exempted.
Transport allowance - 800/- p.m. is tax exempted.
PF contribution is covered under sec 80C

thanks pon..however i still need more clarity on my queries. can anyone tell me how to calculate taxable income and what are the slabs of income tax deduction?
Hi Vineeta,
Based on your salary detail your taxable income is as under:
Basic 25496*12 = 305952
HRA (152976-122381) = 30595
Taxable Salary = 336547
Less Deduction Ch. Vi (3060*12) = 36720
Deduction for AY 2013-14 = 200000=-236720
Tax on Rs 99827 @ 10% Rs. 9983
Cess & H.S. cess Rs. 300
Total Tax Rs.10283
HRA least of below exmepted
1.HRA-12748*12 = 152976
240% of Basic =-122381
3.as you have not mentioned actual rent paid hence not ascertained.
Hope this will clear your query.

Hi Sanjeev, In the calculation of HRA you have taken 40% of basic, but it should be 50% of basic instead of 40%. Regards Sonal
thanks. much clearer than before.
how abt investments? how does it work? how much investment is done to save tax?
what is the income tax deduction with and without investment
investment here pertaining to insurance, nsc, tax saving deposits, ppf etc,.

Hi Vinni, Savings and Investment limit is upto Rs. 1,00,000 under section 80 C, beside that you can have mediclaim upto 15000 per annum under section 80 D. Regards, Sonal

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