Hi, i am swati, want to know how the income tax is calculated. How much deductions. My ctc is 2 lacs 25 thousand. Please provide me the provision and deduction details thankyou....
From India, Mumbai
2From India, Mumbai
IT tax calculations are available in IT dept. official site. The calculator is also there. by the way.. In 2.25 LPA, u have 2.25-1.9 = 35000 is only taxable acc. to 2010-11 taxation slab. after that u have 1 Lakh to save in different options, so u can save whole 35000 in PPF or other Insurance sectors to save tax. other wise u have to pay 10% of 35000, i.e 3500 for the whole year
From India, Delhi
From India, Delhi
Dear Swati,
I think your ctc of Rs 2,25,000 is for one month. If it is so the annual income will be Rs. 27 lakhs.
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 get an idea to enter the inputs.
On gross salary the following deductions are applicable.
1) Professional Tax
2) House Rent in excess of 1/10th of salary subject to ceiling equivalent to HRA
3) Interest on Housing loan subject to ceiling Rs. 1,50,000.
4) Refund on Housing loan, savings, tution fee to 2 children etc. altogether subject to ceiling Rs.100,000.
5) In addition savings on infrastructure bonds upto Rs. 20,000.
6) Other than the above one lakh, 15000 to 20000 towards medi claim premium, 40000 to 60000 towards treatment on specified diseases like Motor Neuron disease, 75000 to 100,000 towards disabilty etc. are also admissible for deduction.
Now taxable income can be calculated as follows.
Gross salary - total deductions = Taxable income
Tax payee can be categorised into 3.
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 Female has to pay in excess of Rs.1,90,000 & Non Senior Male in excess of Rs.1,60,000.
Beyond the above income, one has to pay 10% upto Rs.5,00,000, 20% there after upto Rs.8,00,000 and 30% in excess of Rs.8,00,000. In addition, an education cess @ 3% will be charged on Total Tax.
I shall quote on example.
Gross income of a Non Senior Male - Rs. 12,00,000
Deductions (actual) : Professional Tax - 12000, 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) - 12000+150000+100000+20000+50000 = 332000
Taxable income, 1200000 - 332000 = 868000
For Non Senior Male :
Rs. 1,60,000 is exempted.
For next 340000 (500000-160000), 340000x10% = 34000 -(1)
For next 300000 (800000-500000), 300000x20% = 60000 -(2)
For next 68000 (868000-800000), 68000x30%= 20400 -(3)
Tax - (1)+(2)+(3) = 114400
Also For Non Senior Female Tax is, 114400-3000 = 110400
and Senior Citizens Tax is, 114400-8000 = 106400
Education Cess, 114400*3% = 3432.
Total Tax - Rs. 1,17,832
See Excel Sheet. Enter gross salary and deductions/savings applicable in green colour column. Results will be occured in yellow colour. The red colour is used for static datas.
ABBAS.P.S,
ITI Ltd, PALAKKAD - 678 623,
KERALA, INDIA.
Ph. +91 9447 467 667
From India, Bangalore
I think your ctc of Rs 2,25,000 is for one month. If it is so the annual income will be Rs. 27 lakhs.
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 get an idea to enter the inputs.
On gross salary the following deductions are applicable.
1) Professional Tax
2) House Rent in excess of 1/10th of salary subject to ceiling equivalent to HRA
3) Interest on Housing loan subject to ceiling Rs. 1,50,000.
4) Refund on Housing loan, savings, tution fee to 2 children etc. altogether subject to ceiling Rs.100,000.
5) In addition savings on infrastructure bonds upto Rs. 20,000.
6) Other than the above one lakh, 15000 to 20000 towards medi claim premium, 40000 to 60000 towards treatment on specified diseases like Motor Neuron disease, 75000 to 100,000 towards disabilty etc. are also admissible for deduction.
Now taxable income can be calculated as follows.
Gross salary - total deductions = Taxable income
Tax payee can be categorised into 3.
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 Female has to pay in excess of Rs.1,90,000 & Non Senior Male in excess of Rs.1,60,000.
Beyond the above income, one has to pay 10% upto Rs.5,00,000, 20% there after upto Rs.8,00,000 and 30% in excess of Rs.8,00,000. In addition, an education cess @ 3% will be charged on Total Tax.
I shall quote on example.
Gross income of a Non Senior Male - Rs. 12,00,000
Deductions (actual) : Professional Tax - 12000, 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) - 12000+150000+100000+20000+50000 = 332000
Taxable income, 1200000 - 332000 = 868000
For Non Senior Male :
Rs. 1,60,000 is exempted.
For next 340000 (500000-160000), 340000x10% = 34000 -(1)
For next 300000 (800000-500000), 300000x20% = 60000 -(2)
For next 68000 (868000-800000), 68000x30%= 20400 -(3)
Tax - (1)+(2)+(3) = 114400
Also For Non Senior Female Tax is, 114400-3000 = 110400
and Senior Citizens Tax is, 114400-8000 = 106400
Education Cess, 114400*3% = 3432.
Total Tax - Rs. 1,17,832
See Excel Sheet. Enter gross salary and deductions/savings applicable in green colour column. Results will be occured in yellow colour. The red colour is used for static datas.
ABBAS.P.S,
ITI Ltd, PALAKKAD - 678 623,
KERALA, INDIA.
Ph. +91 9447 467 667
From India, Bangalore
Hi Swati,
I think you have received the Salary break up for 2.25 Lacs. Some heads will get exempted under section 10, ie HRA, conveyance, CEA etc.
Abbas had given detailed explanation on various deduction under income tax. After incorporating all the deduction if your taxable income goes beyond the taxable limit, ie 190000/-(female assessee) then tax will be applicable to you.
Regards
Siji
From India, Mumbai
I think you have received the Salary break up for 2.25 Lacs. Some heads will get exempted under section 10, ie HRA, conveyance, CEA etc.
Abbas had given detailed explanation on various deduction under income tax. After incorporating all the deduction if your taxable income goes beyond the taxable limit, ie 190000/-(female assessee) then tax will be applicable to you.
Regards
Siji
From India, Mumbai
Dear Abbas,
Thanks , I got the good and in detailed explanation for how much will be taxable amount, and in whcih head what comes.
Thanks and lot once again, Now I feel I can calculate the tax for any CTC, as guided by you.
From India, Mumbai
Thanks , I got the good and in detailed explanation for how much will be taxable amount, and in whcih head what comes.
Thanks and lot once again, Now I feel I can calculate the tax for any CTC, as guided by you.
From India, Mumbai
Dear Sijji and Manoj
Thank, I also got good information from you, in simple language what will be my taxable amount and in what way and where I can get the money at end of the year. Nice explanaiton.
Thanks once again for giving me valuable information.
From India, Mumbai
Thank, I also got good information from you, in simple language what will be my taxable amount and in what way and where I can get the money at end of the year. Nice explanaiton.
Thanks once again for giving me valuable information.
From India, Mumbai
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