I have been working in a private firm for the past 4 years. However, I don't know anything about income tax. Could someone please help me understand income tax from the basics and provide me with some ideas to save on income tax? Thanks in advance.
From India, Chennai
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From India, Chennai
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Hi,
The first step is how they designed your salary. HRA - is a highly tax-saving component in the salary structure. Conveyance - 800 Medical - 1250 Sodexo - 2200 Telephone - 1500 Car, Meal Coupons, LTA, Uniform allowances, CEA (these are the salary components, and you can save income tax on these).
Investments: 80(C) up to 1 lakh tax is exempted (policies, PF, PPF, fixed deposit, tuition fees, home loan principle, NSC, shares) 80E - education loan interest, total interest exempted.
From India, Mumbai
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429The first step is how they designed your salary. HRA - is a highly tax-saving component in the salary structure. Conveyance - 800 Medical - 1250 Sodexo - 2200 Telephone - 1500 Car, Meal Coupons, LTA, Uniform allowances, CEA (these are the salary components, and you can save income tax on these).
Investments: 80(C) up to 1 lakh tax is exempted (policies, PF, PPF, fixed deposit, tuition fees, home loan principle, NSC, shares) 80E - education loan interest, total interest exempted.
From India, Mumbai
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Hi Aditya,
Thanks for the information. My payslip has the following components:
- Basic: 16,446
- HRA: 8,223
- Special Allowance: 1,505
- Other Allowance: 12,268
- STATUTORY BONUS: 700
Additionally, I have the following deductions:
- PF: 1,974
- Professional Tax: 200
Could you please advise on my taxable income and the maximum exemption I could receive? I would appreciate any information you could provide.
Thanks,
Prabaharan
From India, Chennai
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Thanks for the information. My payslip has the following components:
- Basic: 16,446
- HRA: 8,223
- Special Allowance: 1,505
- Other Allowance: 12,268
- STATUTORY BONUS: 700
Additionally, I have the following deductions:
- PF: 1,974
- Professional Tax: 200
Could you please advise on my taxable income and the maximum exemption I could receive? I would appreciate any information you could provide.
Thanks,
Prabaharan
From India, Chennai
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Hi,
Basic salary is fully taxable.
House Rent Allowance (HRA) can be availed if you are staying in a rented home by submitting proof of rent paid. To calculate the benefit, I need the rent amount.
Other allowances, special allowances, and bonus amounts are all fully taxable.
Provident Fund (PF) contributions, including the total amount and interest earned, are tax-free.
Professional Tax (PT) is also tax-free.
From India, Mumbai
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Basic salary is fully taxable.
House Rent Allowance (HRA) can be availed if you are staying in a rented home by submitting proof of rent paid. To calculate the benefit, I need the rent amount.
Other allowances, special allowances, and bonus amounts are all fully taxable.
Provident Fund (PF) contributions, including the total amount and interest earned, are tax-free.
Professional Tax (PT) is also tax-free.
From India, Mumbai
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SALARY CALCULATOR & INCOME TAX.zip
EMPLOYEE SALARY INCOME TAX CALCULATION.xls x