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How To Calculate Income Tax for Salaried Person FY 2018–19 | Return Filing Calculate

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How To Calculate Income Tax

How To Calculate Income Tax for A Salaried Person: Being citizen of India one has to pay Income Tax of their earnings. For employee income is addition of basic salary+HRA+TA+other allowances which is taxable so,know How to Calculate Income Tax for Salaried Person from this page

For Income Tax Return Filing, everyone approachCA, But you can also calculate Income Tax with the help of calculator provided on this page

How To Calculate Return Filing

For Salaried Person it is very disappointed to pay Income Taxfrom their salary, after working whole month. But for working employee income that they receive will always be taxable as per government rules and regulations.

Tax is applicable on Salary depends upon the tax slab on figures of income. All basic salary +HRA+ TA+ other allowances are taxable however some components are exempt from tax, such as medical reimbursements, telephone bills reimbursement.


How To Calculate Income Tax for Salaried Person FY 2018

Before paying tax first thing one need to know is salary slab under they fall as taxable Income is calculated as per slab rate after all applicable deductions. Income tax calculators are used for computing taxable revenue from five heads of income.

Find out tax liability and know how much you need to invest to save taxes by reading this entire page which is created regarding How to Calculate Income Tax for Salaried Person FY 2018 by team of www.privatejobshub.in.

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How To Calculate Income Tax for Salaried Person FY 2018

Computation of Tax re as follows-

Particulars
Amount
Amount
Basic pay
 -
XXXXX
+ Dearness allowance
 -
XXX
+ Annuity
 -
XXX
+ Bonus
 -
XXX
+ Commission
 -
XXX
+ Arrears of salary
 -
XXX
+ House Rent allowance
·         Amount of HRA exempted
XXX (XXX)
XXX
+ Leave travel allowance
·         Amount exempted on Leave travel allowance
XXX (XXX)
XXX
+ Perquisites
·         Amount exempted
XXX (XXX)
XXX
+ Other allowances
·         Amount exempted
XXX (XXX)
XXX
+ VRS/ Retrenchment compensation
·         Amount exempted
XXX (XXX)
XXX
+ Gratuity received
·  Exempted gratuity
XXX (XXX)
XXX
+ Leave encashment
·         Exempted leave encashment
XXX (XXX)
XXX
+ Pension
·         Amount exempted
XXX (XXX)
XXX
+ Employers Contribution (in excess of 12% salary of employee)
 -
XXX
+ Interest on PF in excess of the notified amount
 -
XXX
Gross Salary
 -
XXXXX
·         Deductions under the Section 16:
 -

Entertainment allowance
 -
XXX
Professional Tax paid
 -
XXX
Income chargeable for tax under Salaries
 -
XXXXX


Calculate Income Tax as per Slab rates

If you want to know how much Income Tax you need to pay? Then check slab rates first in which your income is falling.  How much tax you pay is totally depends upon tax slab rates applicable to your income.

Slab Rates for Senior Citizens (more than 60 years but less than 80 years)

T Taxable Income
Rates
0 to Rs.3,00,000
NIL
Rs.3,00,000 to Rs.5,00,000
5%
Rs.5,00,000 to Rs.10,00,000
20%
More than Rs.10,00,000
30%

Slab Rates for Super Senior Citizens (80 years old or more)

Taxable Income
Rates
0 to Rs.5,00,000
NIL
Rs.5,00,000 to Rs.10,00,000
20%
More than Rs.10,00,000
30%


Tax Rates for Indian Citizens below 60 years of age

Total Income (Annual)
Rates
Education Cess
Higher and Secondary Education Cess
0 to Rs.2,50,000
NIL
NIL
NIL
Rs.2,50,001 to Rs.5,00,000
5%
2% of the total Income tax
1% of the total Income tax
Rs.5,00,001 to Rs.10,00,000
Rs.12,500 and an additional 20%
2% of the total Income tax
1% of the total Income tax
More than Rs.10,00,000
Rs.1,12,500 and an additional 30%
2% of the total income tax
1% of the total income tax

Tax Rates for Indian Citizens (below 80 years but above 60 years)

Total Income (Annual)
Rates
Education Cess
Higher and Secondary Education Cess
0 to Rs.3,00,000
NIL
NIL
NIL
Rs.3,00,001 to Rs.5,00,000
5%
2% of the total income tax
1% of the total income tax
Rs.5,00,001 to Rs.10,00,000
Rs.1000 and an additional 20%
2% of the total income tax
1% of the total income tax
More than Rs.10,00,000
Rs.1,10,000 and additional 30%
2% of the total income tax
1% of the total income tax

Super Senior Residents OfIndia

Total Income (Annual)
Rates
Education Cess
Higher and Secondary Education Cess
0 to Rs.5,00,000
NIL
NIL
NIL
Rs.5,00,001 to Rs.10,00,000
20%
2% of the total income tax
1% of the total income tax
More than Rs.10,00,000
Rs.1,00,000 and an additional 30%
2% of the total income tax
1% of the total income tax


How to Calculate Total Income from Salary?

Nature
Amount
Exemption/Deduction
Taxable
Basic Salary
6,00,000
-
6,00,000
HRA
3,00,000
1,80,000
1,20,000
Transport Allowance
96,000
19,200
76,800
Special Allowance
60,000
-
60,000
LTA
20,000
12,000 (bills submitted)
8,000
Medical Bills
15,000
15,000(bills submitted)
-
Gross Total Income from Salary
8,64,800

How to calculate income tax for Salaried Person in India?

See an example How to calculate income tax for Salaried Person depending upon the amount of income-

Up to Rs 2,50,000
Exempt from tax
0
Rs 2,50,000 to Rs 5,00,000
10% (10% of Rs 5,00,000 less Rs 2,50,000)
25,000
Rs 5,00,000 to Rs 10,00,000
20% ( 20% of Rs 7,12,800 less Rs 5,00,000)
42,560
More than RsRs 10,00,000
30% (nil)
0
Cess
3% of total tax (3% of Rs 25,000 + Rs 42,560)
2,026
Total Income Tax
Rs 25,000 + Rs 42,560 + 2,026
Rs 69,586.80


Common Slabs For All
Surcharge:
  • 10% on IT if, total income exceeds Rs. 50 Lakhs uptoRs 1 crore
  • 15% on IT if, total income is above Rs 1 crore
Cess:

3% on total income tax payable including surcharge.

Rebate under Section 87A:

Tax rebate of Rs 2,500 for individuals with income of up to Rs 3.5 Lakhs

How To Calculate Income Tax for Salaried Person?

Range
Tax Rates
Tax Amount (Rs)
Up to Rs 2,50,000
Exempt from tax
Nil
From Rs 2,50,001 to Rs 5,00,000
5%
12,500 (5% x (Rs 5,00,000 – Rs 2,50,000))
From Rs 5,00,001 to Rs 10,00,000
20%
42,560 (20% x (Rs 7,12,800 – Rs 5,00,000)
More than Rs 10,00,000
30%
Nil
Cess
3% of total tax
1651.80 (3% x (Rs 12,500 + Rs 42,560))
Total Income Tax
Rs 56,711.80 (Rs 12,500 + Rs 42,560 + 1651.8)


5 Heads To Calculate Income Tax
  • Know how to calculate income taxthrough different sources!!! After checking slab rates differentiate you income among following 5 heads
  • Income from Salary (salary paid by your employer)
  • Income from house property (add any rental income, or include interest paid on home loan)
  • Income from capital gains (income from sale purchase of shares or house)
  • Income from business/profession (income from freelancing or a business or profession)
  • Income from other sources (saving account interest income, fixed deposit interest income, interest income from bonds)
How To Calculate Income Tax For Salaried Person As Per Sources?

Nature
Maximum Deduction
Eligible investments/expenses
Amount claimed
Section 80C
Rs.1,50,000
PPF deposit Rs 50,000, ELSS investment Rs 20,000, LIC premium Rs 8,000. EPF deducted by employer(Neha’s contribution) = Rs 50,000 *12% *12 = 72,000
Rs 1,50,000
Section 80D
Rs 25,000 for self Rs 30,000 for parents
Medical insurance premium Rs 12,000
Rs 12,000
Section 80TTA
10,000
Savings account interest 8,400
Rs. 8,400


Calculation Of Gross Taxable Income In India

Nature
Amount
Total
Income from Salary
8,64,800
-
Income from Other Sources
18,400
-
Gross Total Income
-
8,83,200
Deductions
80C
1,50,000
80D
12,000
-
80TTA
8,400
1,70,400
Gross Taxable Income
-
7,12,800

Final Note

Hope you now know that How To Calculate Income Tax for Salaried Person FY 2018–19. For further interesting facts keep visiting to our site regularly.

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