Dear all,
Can anybody please explain the income tax calculation? Many have attached an Excel sheet for calculation, but I didn't understand it properly. Here, I am providing an example. Please explain how to calculate income tax for the following:
Name: Shalini
Sex: Female
CTC: 2.20 per annum
Basic Monthly: 7000
I understand that for females, the exemption is 1.8 per annum. So, tax will be calculated on 40,000 (220,000 - 180,000), which is 10%. Will it be 4000 for the year? Please confirm if my understanding is correct.
Regards,
Bunny
From India, Hyderabad
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2Can anybody please explain the income tax calculation? Many have attached an Excel sheet for calculation, but I didn't understand it properly. Here, I am providing an example. Please explain how to calculate income tax for the following:
Name: Shalini
Sex: Female
CTC: 2.20 per annum
Basic Monthly: 7000
I understand that for females, the exemption is 1.8 per annum. So, tax will be calculated on 40,000 (220,000 - 180,000), which is 10%. Will it be 4000 for the year? Please confirm if my understanding is correct.
Regards,
Bunny
From India, Hyderabad
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Income-tax (FOR Resident - Female) on Rs. 220,000 is Rs. 4,120.00 Surcharge Rs. 0.00Education Cess Rs. 80.00Secondary and Higher Education Cess Rs. 40.00
From India, Bangalore
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From India, Bangalore
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Income-tax (Income of Individuals as Resident - Female) on Rs. 220,000 is Rs. 4,120.00Surcharge Rs. 0.00Education Cess Rs. 80.00Secondary and Higher Education Cess Rs. 40.00
From India, Bangalore
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From India, Bangalore
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Hi Bunny,
Under the IT Act, there are some tax benefit exemptions. Regarding HRA, there are 3 formulas to calculate the tax exemption amount:
1. How much rent are you paying?
2. HRA being paid by the company.
3. Rent paid - 10% of Basic. The least amount will be considered as an HRA exemption.
Other components for tax benefits include:
- PF
- Professional Tax
- Mediclaim up to 15000/-
- Section 80C: 100000 (all savings like NSC, LIC Premiums, Mutual funds, UPLP, etc.)
- Medical Reimbursement offered in the Payslip
- LTA
I believe that by examining her payslip, we can easily determine whether she is liable to pay tax or not.
Thanks and regards,
Sree
From India, Pune
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Under the IT Act, there are some tax benefit exemptions. Regarding HRA, there are 3 formulas to calculate the tax exemption amount:
1. How much rent are you paying?
2. HRA being paid by the company.
3. Rent paid - 10% of Basic. The least amount will be considered as an HRA exemption.
Other components for tax benefits include:
- PF
- Professional Tax
- Mediclaim up to 15000/-
- Section 80C: 100000 (all savings like NSC, LIC Premiums, Mutual funds, UPLP, etc.)
- Medical Reimbursement offered in the Payslip
- LTA
I believe that by examining her payslip, we can easily determine whether she is liable to pay tax or not.
Thanks and regards,
Sree
From India, Pune
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EMPLOYEE SALARY INCOME TAX CALCULATION.xls x