suppose my salary is 5lac per annum,in which i get some allowances such as medical of 2200/- and conveyance allowance of 2200/-,i get HRA as 6000/-,2000 is cut in Provident fund per month.and remaining monthly income can be count as adhoc and basic salary. Now at the end of the yr tell me how much tax i have to give??
and How cud i save it ??What policie will i have to take??
shud i go for ELSS, MF's, FD,or LIC's, or ULIP's ??
Please also tell me the way in which i can save my full tax.and i dont wanna take any loans on me , i wanna save my tax by taking policies or by investing my money under some tax benefit policies. Is it possible The following are the rules for calculating tax and the advice for investing to get tax benefits.
Tax Rate
For individuals resident woman (not being a senior citizen)
Net income range income tax rate
Upto 135000 nil
135000 to 150000 10% of (TI-135000) + 2% education cess
150000 to 250000 1500+20% of (TI-150000) +2% education cess
250000 to 1000000 21500+30% of (TI- 250000) +2% education
cess
above 1000000 246500+30%of (TI-1000000) +10% of income tax Surcharge + 2% of income tax and surcharge
For resident senior citizen (who is of 65 years or more at anytime during the previous year)
upto 185000 nil
185001 to 250000 20% of (TI-185000)+2% edu cess
250001 to 1000000 13000+30% of (TI- 250000)+2% edu cess
above 1000000 238000+30% of (TI- 1000000)+10% sc
+2% edu cess
For any other individual, every HUF/AOP/BOI/Artificial juridical person
upto 100000 nil
100000 to 150000 10%of (TI- 100000)+2% ec
150001 to 250000 5000+20% of (TI-150000)+2% ec
250001 to 1000000 25000+30% of(TI- 250000)+2%ec
above 1000000 250000+30% of (TI-1000000)+10% sc+2%ec
Invest in any of the 18 places given by the IT dept u/s 80C.The maximum deduction will be upto 1 lac.out of 18 these are some of them
1.LIC insurance premium (including payment made by govt employees to the central govt employees' insurance scheme and payment made by a person under children 's defered endowment assurance policy){subject to a maximum of 20% of sum assured}
2.Amount deposited as term deposit for a period of5 years or more accordance with a scheme framed by the govt (applicable from Assessment year 2007-2008)
3.Payment in respect of non-commutableDeffered annuity plan
4.Any amount paid as tuition fee (not including any payment towards development fees/donation/payment of similar nature) whether at the time of admission or otherwise to any university/college/educational institutions in india for full time education
5.Salary deducted by employer (incase of Govt employee)6.contribution to Statutory provident fund and RPF.
7.contribution towards 15yrs PPF
8.contribution towards approved superannuation fund.
9.Subscription to National Savings Certificate VIII issue.
10.contribution for participating in the ULIP of UTI
11.contribution for participating in the ULIP of LIC mutual fund
12.Payment for notified annuity plan of LIC or any other insurer.
13.Subscription towards notified units of Mutual Fund or UTI
14.contribution to notified pension fund set up by Mutual fund or UTI (i.e retirement benefit pension fund of UTI)
15.Any sum paid including accrued interest as subscription to home loan account scheme of the National Housing Bank or contribution to any notified pension fund set uo by the national housing Bank.
16.Any sum paid as subscription to any scheme ofa> public sector company engaged in providing long term finance for purchase/construction of residential house in India.b> housing board constituted in India for the purpose of planning, development or improvement of cities/towns.
17.Any amount towards the cost of purchase/construction of aresidential property (including repayment of loan taken from Govt. bank, cooperative bank,LIC,National Housing Bank,assessee's employer where such an employer is a public company/public sector company/university/co-operativ... society)18.amount invested in approved debentures of, and equity shares in, a public company engaged in infrastructure including power sector or units of amutual fund proceeds of which are utilised for the developing, maaintaining,etc of a new infrastructure facility u can save tax by purchasing bond or depositing money in lic etc but up to 1 lack deduct from your nett profit . rest nett amount what ever remaing u have to deposit tax according to tax slave As per u r statement , u have got the answer in u r question.If the medical expense been made personally to u or u could deduct it or made for some 1 except u r dependent wife or child or u r parents should be mentioned clearly. Next conveyance allowance...if its given officially , u need to pay tax for it or if its paid personally to u based on u r performance or on some point , u r BOSS is purely liable for it...HRA...its based on u r city u live but u didnt mention the City u live..so i couldnt make a clear solution on it and provident fund too comes under the same roof.So if u r informations were clear, i would calculate it.But to save tax u could approach LIC and moreover it is secured and it will giva return on future to u or u r family.. I am giving answer your question step by step
1. Medical Allowances will totaly taxable & Conveyance allowance will 16,800 taxable 2. House Rent Allowance is exempt in three step calculation and which will less exempt from Tax.
(1) Actually rent paid by employee or
(2) Excess rent paid over 10% of basic Salary or
(3) If Employee is living in Delhi, Mumbai, Chennai or Kolcutta city then 50% of Salary. If Employee is living in other place instead of Mahanagar Delhi, Chenai, Mumbai,Kolcutta ,then 40% of Salary will Exempt.
Here You not describe your House Rent So I am in Suspection .
Employee should see Which amount be less in three steps then He will minus from Actual Amount received of HRA..
Thus, Calculation of Taxable Income from Salary
Basic Salary ---------
Taxable Allowance -----------
Bonus if received ----------
Annual Benefit if received ----------
Provident Fund ----------
Total Gross Salary ( In Rupees) =
+ any Other Income if received ---------
Total Taxable Amount
Minus (-) Deduction from U/S
80 ccc to 80 u till ---------
Total Taxable Amount
After Deduction ----------
------------
Note -- You will get deduction only 1,00,000 till on LIC , PF contribution, NSC investment or actual amount invested which is less .
After Known your Taxable Income Caculate Tax Amount on Total Taxable Income.
As- Calculate of Tax
First Income 1,00,000 Exempt
Second 50,000 till @ 10% 5,000
next 1,00,000 till @ 20% 20,000
and other rest total Income @ 30%
( Here not describes Total taxable Income so I could'ot calculate your Tax Amount)
After Calculating Total Tax amount you can deposite in HDFC Bank and challan receiving you fill up Form 2D after receiving form 24 your Employer.
If your Employer has deduct TDS then he will issue form 16 for TDS Certificate,Pan Card necessary for Fill up your Income Return.
Thus You will get Deduction on your 5 lacs Salary are following
1. HRA
2. Convenyance
3. 1,00,000 till Investment Amount
4. U/S 80 c to 80 U
Tax Slave are Following
Exempt first Rs 1,00,000
next Rs. 50,000 @ 10%
next Rs. 1,00,000 @ 20%
Next above 30%
If Assessee age above 65 year then 1,85,000 will first Exempt and Next 65,000 @ 20% and Rest @30% .This is for Individual , HUF, AOP , BOP ,
Income heads are five type
1. Income From Salary
2. Income from House Property
3. Income from Business or Profession
4. Capitals Gains
(a) Long Term Capital Gains
(b) Sort Term Capital Gains
5. Income from Other Sources
as Lottery , puzzels , Horce race etc.
Thank you
Harindar Gupta One lakh already excepmtion as per incoem tax act, after deductions up to 100000/-
in that PF, School children tution fess (2*12000), Housing loan principal amount any ivestments mutual funds, LIC,etc.
maxx limit is 1,00,000.
when you take the housing loan means Interest on housing loan max limit deduction is 1,50,000/-
So if you take housing loan than you pay Principal ,100000+ interest 150000
total 250000 fully exmpted from your income
other wise folow above rules (Ivestment rules) |
