Hi Guys, It's that time of the year again! I'm very new to income tax calculations. Is there anybody out here who can lend a helping hand? It would be really great. Once I get a response, I'll share the specific query I have.
Thanks,
Vineeta
From India, Delhi
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17Thanks,
Vineeta
From India, Delhi
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Hi Vineeta, Please share your query first and you will definitely find some answers depending upon the query. That’s why we are here and purpose of this forum.
From India, Delhi
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From India, Delhi
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With reference to the attached salary break-up, the queries are:
- How much is the taxable income in this salary? (How do you calculate it?)
- How much income tax will be deducted with and without saving/investment?
- Would PF be considered as an investment under 80C?
Regards
From India, Delhi
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- How much is the taxable income in this salary? (How do you calculate it?)
- How much income tax will be deducted with and without saving/investment?
- Would PF be considered as an investment under 80C?
Regards
From India, Delhi
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HRA and Tax Exemptions
HRA is 50% of the basic salary in metros or 40% in non-metros. The actual rent paid or HRA (whichever is lower) minus 10% of the basic salary is tax exempted.
Transport Allowance
Transport allowance of ₹800 per month is tax exempted.
PF Contribution
PF contribution is covered under Section 80C.
From India, Lucknow
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HRA is 50% of the basic salary in metros or 40% in non-metros. The actual rent paid or HRA (whichever is lower) minus 10% of the basic salary is tax exempted.
Transport Allowance
Transport allowance of ₹800 per month is tax exempted.
PF Contribution
PF contribution is covered under Section 80C.
From India, Lucknow
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thanks pon..however i still need more clarity on my queries. can anyone tell me how to calculate taxable income and what are the slabs of income tax deduction?
From India, Delhi
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From India, Delhi
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Hi Vineeta, based on your salary details, your taxable income is as follows:
Taxable Income Calculation
- Basic: 25,496 * 12 = 305,952
- HRA: (152,976 - 122,381) = 30,595
- Taxable Salary: 336,547
- Less Deduction Ch. VI: (3,060 * 12) = 36,720
- Deduction for AY 2013-14: 200,000 = -236,720
- Tax on Rs 99,827 @ 10%: Rs. 9,983
- Cess & H.S. cess: Rs. 300
- Total Tax: Rs. 10,283
HRA Exemption Calculation
HRA is the least of the below exempted:
1. HRA: 12,748 * 12 = 152,976
2. 240% of Basic: -122,381
3. As you have not mentioned the actual rent paid, it is not ascertained.
I hope this clarifies your query.
Regards,
Sanjeev
From India, Calcutta
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Taxable Income Calculation
- Basic: 25,496 * 12 = 305,952
- HRA: (152,976 - 122,381) = 30,595
- Taxable Salary: 336,547
- Less Deduction Ch. VI: (3,060 * 12) = 36,720
- Deduction for AY 2013-14: 200,000 = -236,720
- Tax on Rs 99,827 @ 10%: Rs. 9,983
- Cess & H.S. cess: Rs. 300
- Total Tax: Rs. 10,283
HRA Exemption Calculation
HRA is the least of the below exempted:
1. HRA: 12,748 * 12 = 152,976
2. 240% of Basic: -122,381
3. As you have not mentioned the actual rent paid, it is not ascertained.
I hope this clarifies your query.
Regards,
Sanjeev
From India, Calcutta
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Thanks. It's much clearer than before.
Investment Queries
How about investments? How does it work? How much investment is required to save on taxes? What is the income tax deduction with and without investments? Investments here refer to insurance, NSC, tax-saving deposits, PPF, etc.
Regards.
From India, Delhi
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Investment Queries
How about investments? How does it work? How much investment is required to save on taxes? What is the income tax deduction with and without investments? Investments here refer to insurance, NSC, tax-saving deposits, PPF, etc.
Regards.
From India, Delhi
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Hi Vinni, Savings and Investment limit is upto Rs. 1,00,000 under section 80 C, beside that you can have mediclaim upto 15000 per annum under section 80 D. Regards, Sonal
From India, Delhi
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From India, Delhi
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Basic Salary
1. Basic Salary - Fully taxable.
PF Contribution
2. PF Contribution (under section 80C Limit up to 1 Lakh) - Fully Exempted.
HRA (House Rent Allowance) Exemption
3. HRA (Under Section 10(13A)):
- (A) Actual HRA Received
- (B) 40% (Non-Metro) & 50% (Metro) of basic
- (C) Rent Paid - Minus 10% of Basic Salary
Whichever is less between A, B, and C is exempted.
Transport Allowances
4. Transport Allowances (Under Section 10(14)) - ₹800 per month (₹9600 per annum) Exempted.
From India, Kota
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1. Basic Salary - Fully taxable.
PF Contribution
2. PF Contribution (under section 80C Limit up to 1 Lakh) - Fully Exempted.
HRA (House Rent Allowance) Exemption
3. HRA (Under Section 10(13A)):
- (A) Actual HRA Received
- (B) 40% (Non-Metro) & 50% (Metro) of basic
- (C) Rent Paid - Minus 10% of Basic Salary
Whichever is less between A, B, and C is exempted.
Transport Allowances
4. Transport Allowances (Under Section 10(14)) - ₹800 per month (₹9600 per annum) Exempted.
From India, Kota
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Sure Ms. Vini, any time you can pop up, I am available here to help you on any topic related to HR, Labour Law and Tax Management queries.
From India, Kota
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From India, Kota
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Income Tax Calculations..x ls
Circular No 1-2018 Processing of income-tax returns under section 143(1) of the Income-tax Act .pdf