Dear all, please help me calculate tax based on the salary structure below. Additionally, please explain how it works:
- Basic: 11,400
- HRA: 5,700
- Conveyance: 800
- Variable Allowance: 3,650
- Medical: 1,250
Thank you.
From India, Delhi
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- Basic: 11,400
- HRA: 5,700
- Conveyance: 800
- Variable Allowance: 3,650
- Medical: 1,250
Thank you.
From India, Delhi
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Income Tax Calculation for Financial Year 2010-11
I shall insert an Excel worksheet for Income Tax Calculation on salary for the Financial Year 2010-11 (Assessment Year 2011-12). Prior to that, I wish to explain some details to help you enter the inputs.
On gross salary, the following deductions are applicable:
- Professional Tax
- House Rent in excess of 1/10th of salary subject to a ceiling equivalent to HRA
- Interest on Housing loan subject to a ceiling of Rs. 1,50,000
- Refund on Housing loan, savings, tuition fee for 2 children, etc., altogether subject to a ceiling of Rs. 100,000
- In addition, savings on infrastructure bonds up to Rs. 20,000
- Other than the above one lakh, Rs. 15,000 to 20,000 towards mediclaim premium, Rs. 40,000 to 60,000 towards treatment of specified diseases like Motor Neuron disease, Rs. 75,000 to 100,000 towards disability, etc., are also admissible for deduction.
Calculating Taxable Income
Now, taxable income can be calculated as follows:
Gross salary - total deductions = Taxable income
Taxpayer Categories
Taxpayers can be categorized into three groups:
1. Non-Seniors - Male
2. Non-Seniors - Female
3. Senior Citizens (65 years old & above)
If the taxable income is Rs. 2,40,000, a Senior Citizen is fully exempted from paying tax. Non-Senior Females have to pay in excess of Rs. 1,90,000 & Non-Senior Males in excess of Rs. 1,60,000.
Beyond the above income, one has to pay 10% up to Rs. 5,00,000, 20% thereafter up to Rs. 8,00,000, and 30% in excess of Rs. 8,00,000. In addition, an education cess at 3% will be charged on Total Tax.
Example Calculation
Gross income of a Non-Senior Male - Rs. 12,00,000
Deductions (actual): Professional Tax - 12,000, Housing loan interest - 2,00,000, Total savings/deductions - 2,50,000, Savings on Infrastructure bond - 25,000, other deductions over 1,00,000 - 50,000.
Admissible total deductions (subject to ceiling limits) - 12,000 + 1,50,000 + 1,00,000 + 20,000 + 50,000 = 3,32,000
Taxable income: 12,00,000 - 3,32,000 = 8,68,000
For Non-Senior Male:
- Rs. 1,60,000 is exempted.
- For the next 3,40,000 (5,00,000 - 1,60,000), 3,40,000 x 10% = 34,000
- For the next 3,00,000 (8,00,000 - 5,00,000), 3,00,000 x 20% = 60,000
- For the next 68,000 (8,68,000 - 8,00,000), 68,000 x 30% = 20,400
Tax = 34,000 + 60,000 + 20,400 = 1,14,400
Also, for Non-Senior Female Tax is: 1,14,400 - 3,000 = 1,10,400
and Senior Citizens Tax is: 1,14,400 - 8,000 = 1,06,400
Education Cess: 1,14,400 x 3% = 3,432
Total Tax: Rs. 1,17,832
Your Details
Now, I shall address your details. HRA up to 50% may be exempted. Balance salary is 11,400 + 800 + 3,650 + 1,250 = 17,100 per month, i.e., Annual income 2,05,200. EPF will be 1,368 x 12 = 16,416 (This may vary subject to your organizational policies). Balance taxable income is 1,88,784.00 (You may also deduct professional tax, etc., which I do not know).
Up to 1,60,000, no tax. 10% will be charged as tax on 1,88,784 - 1,60,000 = 28,784, i.e., 2,878 & cess at 3% is 86. Total tax = 2,878 + 86 = Rs. 2,964.00
See Excel Sheet. Enter gross salary and deductions/savings applicable in the green-colored column. Results will be shown in the yellow color. The red color is used for static data.
Regards,
ABBAS.P.S,
Secretary,
ITI Employees' Association,
ITI Ltd, PALAKKAD - 678 623,
KERALA, INDIA.
Ph. [Phone Number Removed For Privacy Reasons]
From India, Bangalore
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530I shall insert an Excel worksheet for Income Tax Calculation on salary for the Financial Year 2010-11 (Assessment Year 2011-12). Prior to that, I wish to explain some details to help you enter the inputs.
On gross salary, the following deductions are applicable:
- Professional Tax
- House Rent in excess of 1/10th of salary subject to a ceiling equivalent to HRA
- Interest on Housing loan subject to a ceiling of Rs. 1,50,000
- Refund on Housing loan, savings, tuition fee for 2 children, etc., altogether subject to a ceiling of Rs. 100,000
- In addition, savings on infrastructure bonds up to Rs. 20,000
- Other than the above one lakh, Rs. 15,000 to 20,000 towards mediclaim premium, Rs. 40,000 to 60,000 towards treatment of specified diseases like Motor Neuron disease, Rs. 75,000 to 100,000 towards disability, etc., are also admissible for deduction.
Calculating Taxable Income
Now, taxable income can be calculated as follows:
Gross salary - total deductions = Taxable income
Taxpayer Categories
Taxpayers can be categorized into three groups:
1. Non-Seniors - Male
2. Non-Seniors - Female
3. Senior Citizens (65 years old & above)
If the taxable income is Rs. 2,40,000, a Senior Citizen is fully exempted from paying tax. Non-Senior Females have to pay in excess of Rs. 1,90,000 & Non-Senior Males in excess of Rs. 1,60,000.
Beyond the above income, one has to pay 10% up to Rs. 5,00,000, 20% thereafter up to Rs. 8,00,000, and 30% in excess of Rs. 8,00,000. In addition, an education cess at 3% will be charged on Total Tax.
Example Calculation
Gross income of a Non-Senior Male - Rs. 12,00,000
Deductions (actual): Professional Tax - 12,000, Housing loan interest - 2,00,000, Total savings/deductions - 2,50,000, Savings on Infrastructure bond - 25,000, other deductions over 1,00,000 - 50,000.
Admissible total deductions (subject to ceiling limits) - 12,000 + 1,50,000 + 1,00,000 + 20,000 + 50,000 = 3,32,000
Taxable income: 12,00,000 - 3,32,000 = 8,68,000
For Non-Senior Male:
- Rs. 1,60,000 is exempted.
- For the next 3,40,000 (5,00,000 - 1,60,000), 3,40,000 x 10% = 34,000
- For the next 3,00,000 (8,00,000 - 5,00,000), 3,00,000 x 20% = 60,000
- For the next 68,000 (8,68,000 - 8,00,000), 68,000 x 30% = 20,400
Tax = 34,000 + 60,000 + 20,400 = 1,14,400
Also, for Non-Senior Female Tax is: 1,14,400 - 3,000 = 1,10,400
and Senior Citizens Tax is: 1,14,400 - 8,000 = 1,06,400
Education Cess: 1,14,400 x 3% = 3,432
Total Tax: Rs. 1,17,832
Your Details
Now, I shall address your details. HRA up to 50% may be exempted. Balance salary is 11,400 + 800 + 3,650 + 1,250 = 17,100 per month, i.e., Annual income 2,05,200. EPF will be 1,368 x 12 = 16,416 (This may vary subject to your organizational policies). Balance taxable income is 1,88,784.00 (You may also deduct professional tax, etc., which I do not know).
Up to 1,60,000, no tax. 10% will be charged as tax on 1,88,784 - 1,60,000 = 28,784, i.e., 2,878 & cess at 3% is 86. Total tax = 2,878 + 86 = Rs. 2,964.00
See Excel Sheet. Enter gross salary and deductions/savings applicable in the green-colored column. Results will be shown in the yellow color. The red color is used for static data.
Regards,
ABBAS.P.S,
Secretary,
ITI Employees' Association,
ITI Ltd, PALAKKAD - 678 623,
KERALA, INDIA.
Ph. [Phone Number Removed For Privacy Reasons]
From India, Bangalore
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Hi, thanks for such valuable information. However, I still do not understand why HRA up to 50% may be exempted. What is the maximum limit of exclusion? For example, if a person's HRA is 30,000, how will it be calculated?
Could you please calculate the tax based on the following denominations:
- Basic: 31,000
- HRA: 15,500
- Con: 800
- Variable Allowance: 13,450
- Medical: 1,250
Thank you for your kind assistance.
From India, Delhi
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Could you please calculate the tax based on the following denominations:
- Basic: 31,000
- HRA: 15,500
- Con: 800
- Variable Allowance: 13,450
- Medical: 1,250
Thank you for your kind assistance.
From India, Delhi
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Towards house rent, the maximum amount to be deducted is equal to HRA up to 50%. Regarding HRA, there is a government tariff. Accordingly, 50% is applicable in Metro cities only. i.e., if it is above the Govt. tariff, you are not supposed to get it. If the rent paid is HRA + 10% of the gross salary, the amount exempted will be equal to HRA.
To calculate tax on the above income, kindly provide the deductions, if any. Otherwise, you may refer to the above Excel sheet.
Regards,
Abbas.P.S
From India, Bangalore
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To calculate tax on the above income, kindly provide the deductions, if any. Otherwise, you may refer to the above Excel sheet.
Regards,
Abbas.P.S
From India, Bangalore
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Can anyone tell me how much Income Tax would be deducted on the following salary structure?
Salary Structure Details
Basic: 94,297
Provident Fund (a): 11,316
Gratuity (b): 5,243
Retirals (a+b): 16,559
Total: 110,855
HRA: 56,578
Meal Voucher: 13,200
Domestic Medical: 15,000
LTA: 20,000
Conveyance: 9,600
Education: 2,400
Balancing Allowance: 222,367
Total - Flexipay: 339,145
Variable Pay: 50,000
Total CTC: 500,000
Thank you.
From India, Delhi
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Salary Structure Details
Basic: 94,297
Provident Fund (a): 11,316
Gratuity (b): 5,243
Retirals (a+b): 16,559
Total: 110,855
HRA: 56,578
Meal Voucher: 13,200
Domestic Medical: 15,000
LTA: 20,000
Conveyance: 9,600
Education: 2,400
Balancing Allowance: 222,367
Total - Flexipay: 339,145
Variable Pay: 50,000
Total CTC: 500,000
Thank you.
From India, Delhi
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