How Much Tax Will Be Deducted from My Salary? Seeking Clarity on TDS Amount

I am working in a private company, and my salary structure per month is as follows:

- Basic Salary: Rs. 10,000
- House Rent Allowance: Rs. 4,000
- Conveyance Allowance: Rs. 2,000
- Medical Allowance: Rs. 2,000
- Total: Rs. 18,000/- per month

How much amount shall be deducted from my salary towards TDS or IT? Please clarify.

Hi, your annual CTC is 216,000. As per income tax slabs, 160,000 is exempted from tax (assuming you are a male non-senior citizen). Hence, the taxable amount is 56,000 (216,000 - 160,000 = 56,000).

In which HRA is partially exempted from tax, and local conveyance up to 9,600 is exempted from tax. Hence, 56,000 - 9,600 = 46,400. If you claim for HRA, you will not fall under taxable income at all.

Hope it cleared your doubts.

Thanks & Regards,
Shilpa Gowda

You will not fall under the tax net, as rightly said by Shilpa. Your PF contribution will be considered under section 80C for tax exemption. Therefore, no tax will be payable. Enjoy.

Regards,
Pon

Dear [Employee], your monthly salary is Rs 18,000 x 12 = Rs 216,000/-. Income Tax (IT) Rules exempt Rs 160,000/- for individuals, making the taxable amount Rs 56,000/-. However, if your basic salary is Rs 10,000/-, your Provident Fund (PF) account is Rs 14,400/-, which is exempt.

House Rent Allowance (HRA) is also exempt from IT Rules, and Professional Tax (P Tax) of Rs 2,500/- is exempt from IT Tax. Additionally, you have an exemption limit of Rs 100,000/- under 80C and education of Rs 10,000/-. As a result, you are not subject to Tax Deducted at Source (TDS). Relax and enjoy the benefits.

Kind regards, [Your Position]