Confused About Tax on a 2 Lac CTC? Seeking Advice on Saving and Investment Options

Hi All,

Can anyone guide me in calculating how much will be my taxable income? My CTC is 2 Lac per annum, and I want to know how to save from paying tax and in what schemes I can invest. We don't have any PF scheme, only PT & TDS.

I also need to know briefly how tax is calculated.

Cheers,
Swati

For females, 1.35 L is tax-exempted. So, 65K is taxable for you. To gain tax benefits, you can go for Tax Benefit Schemes, Insurance Policies, Mutual Funds, etc.

Thank you!

I am also looking forward to having guidelines and a spreadsheet (preferably in Excel) for calculating income tax as per the recent modifications in the tax rules. Help will be highly appreciated.

- Hiten

Hi,

1.35 L is your exemption limit. The rest of 65,000 is taxable. Within this 65,000, your contributions towards PF, conveyance (Rs.900 PM), House rent (approx. 2500 PM for your CTC), and any investments made in mutual funds with a lock-in period of three years or a bank deposit for 5 years, Life Insurance/Health Insurance premiums, and housing loans EMI can be deducted. Only the remaining amount is taxable. The total of these deductions should not exceed 1,00,000.

Hi Bagema,

Thank you for providing me with the details. I have an insurance policy of about 20K per annum. I am also paying a monthly rental of 3K, which amounts to 36K per year. The total sum comes to around 56K, right? At my company, we are considering offering Sodexo coupons to our employees for tax exemption. In my case, I would be eligible for nearly 12K per annum exempted from tax if I opt for these coupons. This would bring the total to around 68K per annum. Is this sufficient, or is there anything else I can do? Furthermore, what is the exemption limit for men, and how do I calculate the tax slab?

It would be greatly appreciated if you could provide me with all the details. I find myself in a position where I have to handle all tax calculations for our employees alone. Therefore, I would like to gain a comprehensive understanding of this matter. Are there any books or documents related to tax calculation that you could recommend?

Please assist me with this issue.

Regards,
Swati :)

Hi,

Tax calculator attached.

- Hiten

SALARY HEADS
GROSS AMOUNT
ACTUAL AMOUNT

BASIC
8000/-
8000/-

CITY ALLOWANCE
800/-
800/-

HRA (50% OF BASIC)
3200/-
3200/-

MEDICAL REIMBURSEMENT
1000/-
1000/-

CONVEYANCE:
1000/-
1000/-

DEDUCTIONS:

PF (12% OF BASIC)
960/-
960/-

ESI:
-
-

PT
110/-
110/-

OTHER DEDUCTIONS: MOBILE FOR PERSONAL USE
250/-
250/-

TOTAL DEDUCTIONS:
1320/-
1320/-

NET AMOUNT
12,680/-
12,680/-

Can anybody help me to know the CTC of the above salary format?
Regards,
DINAMANI