How to Calculate Your Income Tax for 2010-2011: A Simple Guide for Everyone

Hi Friends,

I am herewith sharing with you the calculation for income tax for the next financial year 2010-2011. I hope it will be useful.

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Thanks for sharing the file, but I have one query. We are deducting Professional Tax. Can we get a deduction of this amount in income tax? If yes, from where does it have to be deducted?

Dear Mr. Shinde,

We can claim a deduction for professional tax under section 16(iii) of the Income Tax Act, 1961. For more clarity, please visit the link provided [link no longer exists].

Deductions from salaries:

6316. The income chargeable under the head "Salaries" shall be computed after making the following deductions:
(i) 64[***]
(ii) A deduction in respect of any allowance in the nature of an entertainment allowance specifically granted by an employer to the assessee who is in receipt of a salary from the Government. This deduction is a sum equal to one-fifth of his salary (exclusive of any allowance, benefit, or other perquisite) or five thousand rupees, whichever is less.
(iii) A deduction of any sum paid by the assessee on account of a tax on employment within the meaning of clause (2) of article 27667 of the Constitution, leviable by or under any law.
(iv) 68[***]
(v) 69[***]

Thank you.

Hi everyone,

I am an MBA HR student. I am interested in taking NCFM modules. In what way will it be useful for me? Please guide me.

Amit

Dear Mr. Hariprasad,

Many thanks for sharing something very useful, especially ahead of the FY 2010-11 commencement. I have passed this information on to our colleagues in the Finance Section. Please continue posting such helpful tips.

Warm regards,
Rajendra P.
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Nice XL sheet. Children's Education allowance (tax exemption) is missing. Similarly, fuel and maintenance charges exemption for vehicles, club allowance exemption, and children's hostel expense exemption are missing.

Please ensure to include these exemptions in the document. Thank you.

Thank you, Hariprasad.

I have a question regarding filling out certain columns like EPF. There is an employee contribution in my CTC as well. What should I do in this case?

Could you please share your Email ID so that I can communicate with you? Mine is "sontirp@gmail.com."

Regards,
Ram

Dear Hari, thank you for your support. I have a question: how can I create a simple balance sheet in a format similar to a tax calculation format? If possible, please assist me with this.

Thanks with regards,
Abir

This does not include components like Vehicle Fuel & Maintenance Reimbursement, Research Allowance, and Child Education Allowance, which also provide tax exemptions.