Dear HR friends,
I want to understand how income tax calculated. As per my knowledge tax will be calculated as per doj and on gross correct me if am wrong.
Example : An employee joined in the month of Oct'13 and offered package is 380000 he is eligible for income tax?
my calculation as follows:
380000/6 - 63,333 (calculated as per doj) then he is out tax FY - 13.
Above calculation is right?
Kindly help me how to calculate.
Regards,
Dilep.A
From India, Hyderabad
4I want to understand how income tax calculated. As per my knowledge tax will be calculated as per doj and on gross correct me if am wrong.
Example : An employee joined in the month of Oct'13 and offered package is 380000 he is eligible for income tax?
my calculation as follows:
380000/6 - 63,333 (calculated as per doj) then he is out tax FY - 13.
Above calculation is right?
Kindly help me how to calculate.
Regards,
Dilep.A
From India, Hyderabad
while deducting TDS, his earnings from his previous employer and the tax deducted already have also to be taken into account. pon
From India, Lucknow
From India, Lucknow
Tax will be calculated based on his Gross earnings since DOJ. E.g.
380000/12 = 31666*6=190000 - PT Paid - Conveyance Allwnce Paid(Max 800 /mnth)-HRA Paid - 80C
hope your doubt cleared.
Regards,
MS Hegde.
From India, Mumbai
380000/12 = 31666*6=190000 - PT Paid - Conveyance Allwnce Paid(Max 800 /mnth)-HRA Paid - 80C
hope your doubt cleared.
Regards,
MS Hegde.
From India, Mumbai
Dear Dilep / Dilip,
If the concerned employee has given the declaration about of his income from earlier employment then that should be added.
In your case the CTC is Rs.3,80,000. Hence for 6 months i.e. Rs.1,90,000 then it is not taxable. But he is declaring his earlier income then it will cross Rs.2,00,000 then it will become taxable as per rules.
On computing of Income please consider his Travelling Allowance( i.e. as per I.T. Transport to reaching office maximum to Rs.800.00 without any proof) and Professional Tax deducted if any.
Ramakant
From India, Pune
If the concerned employee has given the declaration about of his income from earlier employment then that should be added.
In your case the CTC is Rs.3,80,000. Hence for 6 months i.e. Rs.1,90,000 then it is not taxable. But he is declaring his earlier income then it will cross Rs.2,00,000 then it will become taxable as per rules.
On computing of Income please consider his Travelling Allowance( i.e. as per I.T. Transport to reaching office maximum to Rs.800.00 without any proof) and Professional Tax deducted if any.
Ramakant
From India, Pune
Community Support and Knowledge-base on business, career and organisational prospects and issues - Register and Log In to CiteHR and post your query, download formats and be part of a fostered community of professionals.
Tax calculation.xls