How To Calculate Income Tax for Salaried Person FY 2018–19 | Return Filing Calculate
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.
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
|
Also Read- Career
In Income Tax Department
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%
|
Check here- असली
और नकली जॉब ऑफर को कैसे पहचाने
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
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