What are the slab rates and exemptions for Income Tax on Salary in 2018-2019-2020? “The hardest thing in the world to understand is income tax.” -Albert Einstein If Einstein could too find taxes difficult to understand, why would the story be different for any layman? Here are the numbers. To know how to calculate Income Tax on your Salary, let’s see the Income Slabs and the tax Which tax rates apply? Here’s how you can calculate income tax on salary with an example: Before knowing how to calculate taxable income from salary, however, you need to first calculate your total income. And the amount between 5 to 10 lac will be levied 20% tax + 3% Cess.Array Amit is a government employee and he has received his long awaited salary dues as arrears. [query] => https://pubstack.nw18.com/pubsync/v1/api/videos/recommended?source=n18english&channels=5d95e6c378c2f2492e2148a2,5d95e6c278c2f2492e214884,5d96f74de3f5f312274ca307&categories=5d95e6d7340a9e4981b2e10a&query=income+tax&publish_min=2020-08-07T14:21:33.000Z&publish_max=2020-08-10T14:21:33.000Z&sort_by=date-relevance&order_by=0&limit=2 ) A Time Warner Company. Salary income for FY 2015-16: Rs 9,00,000 ( … It can be used for the 2013–14 to 2019–20 income years. An employee has to submit bills in order to claim LTA.Encashing the unavailed leaves is exempted from income tax and hence can be claimed under exemptions.There are various investment instruments like PPF, Life Insurance, Tuition Fees paid (upto two children), fixed deposit, etc which are exempted from Income Tax.If you have a home loan running, then you can claim tax exemption upto an extent from the amount you have paid as interest on home loan.Professional Tax is allowed as a deduction from your gross salaried income.Any income received under this head is exempted from income tax.The Total Taxable Income from Salary is calculated after all applicable deductions stated above are adjusted from the total income (gross salary + income from other sources). In above example her net taxable income is Rs.5,50,000/=. For reprint rights: Times Syndication ServiceBelow mentioned is the Income Slabs and the tax rate applicable in the financial year 2017-18:India's smartphone market sees 51% decline, hopes to recover in festive season âââââââMukesh Ambani becomes worldâs fourth-richest person Centibillionaire club: Mark Zuckerberg joins Jeff Bezos and Bill Gates Microsoftâs acquisition of TikTok: The likely âIndian angleâ Grocery shopping tips to stay safe amid coronavirusFace shields for an added protection when you step out of your homeWebcams with built-in mic for easy vlogging and conferencing How can Income Tax be saved for Salaried Employees in India?
Income Tax is the amount of money you pay as tax depending on the tax slab you fall under in accordance with your income. Therefore, she is liable to pay income tax.
To know how to calculate Income Tax on your Salary, let’s see the Income Slabs and the tax rate applicable in the financial year 2017-18:Now let’s understand the composition of your Salary:You can claim deductions from your salaried income under the following heads:- 50% of your basic pay (employees living in metro cities) or 40% (employees living in non-metro cities)The LTA exemption is given to a certain extent of the LTA paid by the employer to the employee for his vacation in India. Calculate Income Tax for Senior Citizen with Salary & Pension and Interest Income Related posts: Section 87A – Most important change for Income Tax Payers in Budget 2019 Income Tax Calculator FY 2019-20 [AY 2020-21] – Excel Download Filing ITR for Senior Citizen with Pension & Fixed Deposit Section 80TTB: Senior Citizens can Save Tax on their Interest Income Hate Paying Taxes?