How much is the limit of nontaxable salary in India.and is calculated from basic salary or which of the items include?
From India, Kochi
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From India, Kochi
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Income Tax Calculation Overview
The calculation of Income Tax is vast and can be both simple and complex, depending on the scenario and applicable conditions. Income Tax is calculated on the total income (from all sources) earned by a person in the year.
Current Income Tax Slabs for Financial Year 2017-18
Income up to Rs. 3.00 L = NIL (Tax-Free Income)
Note that Tax-Free Income is applicable only if it is up to Rs. 3.00 L. If it exceeds this amount, revised rates will be applicable as per below:
- Income more than Rs. 3.00 L and up to Rs. 5.00 L = @ 5% from Rs. 2.50 L to Rs. 5.00 L (Rs. 12,500/-).
- Income from Rs. 5 L to Rs. 10 L = @ 20% (Rs. 1.00 L)
- Income more than Rs. 10 L = @ 30%
Cess on Tax is extra (as applicable).
In the current year, the 10% Tax slab is not applicable. Also, note that while calculating Income for Tax purposes, different kinds of exemptions and deductions apply to different kinds of taxpayers.
Considerations for Salary Tax Payers
Exemptions:
- HRA = As per applicable criteria (maximum 50% of basic or HRA received).
- Conveyance = Maximum Rs. 19,200
- Medical = Maximum Rs. 15,000
Deductions:
- Under Section 80C = Up to Rs. 1.50 L (common deduction, applicable for all - PF, LIC, Children's Tuition Fee, Applicable FDs/Bonds, etc.)
- NPS = Rs. 50K
- Interest on Home Loan
- Other deductions = As applicable
The calculation of the Tax slab is made after adjusting the exemptions and deductions.
I hope I have clarified your points. If you have any specific queries, please share them so that fellow members can clarify.
From India, Delhi
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231The calculation of Income Tax is vast and can be both simple and complex, depending on the scenario and applicable conditions. Income Tax is calculated on the total income (from all sources) earned by a person in the year.
Current Income Tax Slabs for Financial Year 2017-18
Income up to Rs. 3.00 L = NIL (Tax-Free Income)
Note that Tax-Free Income is applicable only if it is up to Rs. 3.00 L. If it exceeds this amount, revised rates will be applicable as per below:
- Income more than Rs. 3.00 L and up to Rs. 5.00 L = @ 5% from Rs. 2.50 L to Rs. 5.00 L (Rs. 12,500/-).
- Income from Rs. 5 L to Rs. 10 L = @ 20% (Rs. 1.00 L)
- Income more than Rs. 10 L = @ 30%
Cess on Tax is extra (as applicable).
In the current year, the 10% Tax slab is not applicable. Also, note that while calculating Income for Tax purposes, different kinds of exemptions and deductions apply to different kinds of taxpayers.
Considerations for Salary Tax Payers
Exemptions:
- HRA = As per applicable criteria (maximum 50% of basic or HRA received).
- Conveyance = Maximum Rs. 19,200
- Medical = Maximum Rs. 15,000
Deductions:
- Under Section 80C = Up to Rs. 1.50 L (common deduction, applicable for all - PF, LIC, Children's Tuition Fee, Applicable FDs/Bonds, etc.)
- NPS = Rs. 50K
- Interest on Home Loan
- Other deductions = As applicable
The calculation of the Tax slab is made after adjusting the exemptions and deductions.
I hope I have clarified your points. If you have any specific queries, please share them so that fellow members can clarify.
From India, Delhi
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