How much is the limit of nontaxable salary in India.and is calculated from basic salary or which of the items include?
From India, Kochi
From India, Kochi
PROFESSIONALS AND BUSINESSES PARTICIPATING IN DISCUSSION
Dear Member,
The Calculation on Income Tax very vast. It can be very simple and complex as well (depend upon the scenario and applicable conditions). The Income Tax is calculated on total income (from all sources) earned by the person in the year.
The present Income Tax Slab for the financial year (2017-18) is :-
Income Upto Rs. 3.00 L = NIL (Tax Free Income)
Note the Tax free Income is applicable only if it is upto Rs. 3.00 L, if it exceeds than revised rate will be applicable as per below
Income more than 3.00 L and upto 5.00 L = @ 5% from Rs. 2.50 L to 5.00 L (Rs. 12500/-).
Income from 5 L to 10 L = @ 20% (Rs. 1.00 L)
Income more than 10 L = @ 30%
Cess on Tax is extra (as applicable).
In the current year 10% Tax slab is not applicable. Also note while calculating Income for Tax calculation different kind of exemptions and deductions are applicable to different kind of tax payers.
However, in case of Salary Tax Payer, the following need to be considered:-
Exemptions:-
HRA = AS per applicable criteria (maximum 50% of basic or HRA recd.)
Conveyance = Maximum 19200
Medical = Maximum 15000
Deductions:-
Under Section 80C = Upto Rs. 1.50 L (common deduction, applicable for all-PF, LIC, Children Tuition Fee, Applicable FDs/Bonds etc)
NPS = Rs. 50K
Interest on Home Loan=
ther deductions = As applicable
The calculation of Tax slab is made after adjusting the exemptions and deductions.
Hope I have clarified your points. If any specific query, pls share the same so that fellow members can clarify.
From India, Delhi
223The Calculation on Income Tax very vast. It can be very simple and complex as well (depend upon the scenario and applicable conditions). The Income Tax is calculated on total income (from all sources) earned by the person in the year.
The present Income Tax Slab for the financial year (2017-18) is :-
Income Upto Rs. 3.00 L = NIL (Tax Free Income)
Note the Tax free Income is applicable only if it is upto Rs. 3.00 L, if it exceeds than revised rate will be applicable as per below
Income more than 3.00 L and upto 5.00 L = @ 5% from Rs. 2.50 L to 5.00 L (Rs. 12500/-).
Income from 5 L to 10 L = @ 20% (Rs. 1.00 L)
Income more than 10 L = @ 30%
Cess on Tax is extra (as applicable).
In the current year 10% Tax slab is not applicable. Also note while calculating Income for Tax calculation different kind of exemptions and deductions are applicable to different kind of tax payers.
However, in case of Salary Tax Payer, the following need to be considered:-
Exemptions:-
HRA = AS per applicable criteria (maximum 50% of basic or HRA recd.)
Conveyance = Maximum 19200
Medical = Maximum 15000
Deductions:-
Under Section 80C = Upto Rs. 1.50 L (common deduction, applicable for all-PF, LIC, Children Tuition Fee, Applicable FDs/Bonds etc)
NPS = Rs. 50K
Interest on Home Loan=
ther deductions = As applicable
The calculation of Tax slab is made after adjusting the exemptions and deductions.
Hope I have clarified your points. If any specific query, pls share the same so that fellow members can clarify.
From India, Delhi
INDIA SALARY HANDBOOK 2008 - 09.pdf