Steps to Calculate Employee Income Tax
It's simple. Take a declaration in the form of 12BB. Calculate income by taking the salary you pay them and adding any perquisites you provide. This does not include the employer's contribution to PF as it is exempt. Deduct the exempted portion of HRA, transport allowance, and other things. Then deduct the professional tax actually paid by the employee. After that, deduct all 80C, 80CCC, 80CCD, 80D, 80DD, 80G, and many other deductions the employee has disclosed in form 12BB. When you have the gross total income, calculate tax based on the difference between gross total income and the minimum exemption limit.
If you are not sure of what you are doing, seek help from an expert.
Also, you can find more information on income tax deductions at http://incometaxsahayak.blogspot.in/.
From India, Kolkata
Acknowledge(0)
Amend(0)
180It's simple. Take a declaration in the form of 12BB. Calculate income by taking the salary you pay them and adding any perquisites you provide. This does not include the employer's contribution to PF as it is exempt. Deduct the exempted portion of HRA, transport allowance, and other things. Then deduct the professional tax actually paid by the employee. After that, deduct all 80C, 80CCC, 80CCD, 80D, 80DD, 80G, and many other deductions the employee has disclosed in form 12BB. When you have the gross total income, calculate tax based on the difference between gross total income and the minimum exemption limit.
If you are not sure of what you are doing, seek help from an expert.
Also, you can find more information on income tax deductions at http://incometaxsahayak.blogspot.in/.
From India, Kolkata
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 Calculation 2009-10 - Salaries.xls