Idea About Income Tax Deduction On Salary - PDF Download

When the income tax is deducted on salary (How much should be amount of salary )
Salary Range amt :- How much should be income tax deducted

Hi,

If your salary is above Rs.2.00 lac then then the Income Tax will be "NIL". Because Rs.1.00 Lac you can save on several instrument for saving purpose like LIC, House Rent, HBA, Bons, Mutual Fund etc. and Rs.1.00 lac Income is treated as Nil for income tax.

Here is the Rates of income-tax for male employee,

1) where the total income does not exceed Rs. 1.00 lac - Nil

2) where the total income exceeds Rs.1.0o lac but does not exceed Rs. 1.5o lac - 10% of the amount by which the total income exceeds Rs. 1.00 lacs

3) where the total income exceeds Rs. 1.50 lacs but does not exceed Rs. 2.50 lac - Rs. 5,000 + 20 % of the amount by which the total income exceeds Rs. 1.50 lac



4) where the total income exceeds Rs. 2.50 lac - Rs. 25,000 + 30% of the amount by which the total income exceeds Rs. 2.50 lac

In case of lady employee and below the age of sixty-five years, the rates for income-tax are: -

1) where the total income does not exceed Rs. 1.35 lac - Nil

2) where the total income exceeds Rs. 1.35 lac but does not exceed Rs. 1.35 lac - 10% of the amount by which the total income exceeds Rs. 1.50 lac



3) where the total income exceeds Rs. 1.50 lac but does not exceed Rs. 2.50 lac - Rs. 1,500 + 20% of the amount by which the total income exceeds Rs. 1.50 lac

4) where the total income exceeds Rs. 2.50 lac - Rs. 21,500 +30% of the amount by which the total income exceeds Rs. 2.50 lac.



In the case of person who is of the age of sixty-five years or more, the rates of incomes tax are

1) where the total income does not exceed Rs. 1.85 lac - Nil

2) where the total income exceeds Rs. 1.85 lac but does not exceed Rs. 2.50 lac - 20% of the amount by which the total income exceeds Rs. 1.85 lac



3) where the total income exceeds Rs. 2.50 lac - Rs. 13,000 + 30%of the amount by which the total income exceeds Rs. 2.50 lac.

And above this Income Tax a Surcharge is levied which is around 2% on Income Tax.

Hope this is give you some kind of idea about what Income Tax is really.

With regards,

RK Sinha

Hi
Mr. Sinha
its really something very knowledgable. but i hav on equery that if company is not showing employee salary in records but only incentives r kept in company records then what ll b procedure . in this case whether salary ll b counted in annual income or not
regards
jyoti

Hi Jyoti,
I can't get your question.
The company has to show some amount as a basic salary to everybody and wheras incentives are concerned, so the tax rules states that the incentives are taxable ony when they are not reimbursement.
Like If you are getting conveyance allowance, you have to submit the bill or undertaking that you have spent an amount on petrol for office purpose, then this is not taxable.
and if you are getting an allowance like education allowance, then it is an taxable income.
Hope this is what you want.
RK Sinha

Hi There,
Pl find attached Income Tax PDF file. I hope this will be helpful.
You can download the same from -www.hsbc.co.in
Warm regards,
Rohit Kumar

hi there
the tips and the ideas you provided with regard to how tax is applicable and how much your salary needs to be for tax purposes was extremely useful,simple and invaluable...i am sharing this information with dozens of my friends who have similar queries..looking forward to having more such articles from you and many of our readers..thanks again....
prem waidande -- pune..

Hi Jyoti,
Hope you problem regarding the Income Tax over the Salary and Incentives are over. I also dont have the full knowledge regarding the Income Tax but all I have is what I have shared with you.
With regards
RK Sinha
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Hi,
Pl find attached tax calculation template

Hi freinds
The following site shall be of help http://www.ynithya.com/taxcalc/..
In simple terms first calculate the taxable income
Basic - Fully
Conveyance - Exempted upto 800/-pm
HRA - Exempted upto certain condition
Calculate total taxable salary.
next 1 lac employee can invest in 80C. Contribution to PF, LIC and certain other things.
Thus from the balance taxable salary, upto 1 Lac is free. Tax will be charged for Next 50,000/- upto 10%, Next 1 Lac upto 20% and Next 1 Lac and above 30%, Please note that 2% education cess shall also be charged on all.
Also reduce Professional tax deducted and income tax if deducted.
I hope this will be simple and useful
Thanks
Ravi

Hello,
Thanks for giving valuble information.
We also look for few details on EPF. aswellas Payroll management.
Please provide some inputs(basics) on the above.
Thank You.
Regards,
Vishwanath.