Saving tax for salaried individuals – Calculating Taxable Income
Paying zero tax for salaried individuals in India – Calculating Taxable Income
Slab before tax and taxable income, calculate deductions - How to avoid paying tax or as short as possible to pay in three blog posts I am writing this article. I have always found it very confusing to calculate the past and through oversights lost a bundle of cash. Here, I have all the information about the salaried people in India know how I posted the tax savings, so that a ready reference whenever I need to calculate.
Calculating taxable income in IndiaFirst, you need to calculate the gross income from salary. The house rent allowance and provident fund contributions include the monthly payments are. If you are a new employee, how many months it has worked with your current employer depends on. Basic pay, dearness allowance and commissions that are fully taxable, most Indians as part of the following major components include allowances in addition to their salary. If you have not been in office some of these benefits is provided, just skip to the next step.
1. House Rent Allowance - If a portion of your salary as house rent allowance or HRA is marked and you are paying rent, the rent deposit receipt. Their children home spouse, or your own name should not be. As the biggest savings from the tax burden, it's you the friends / non-earning member whose home is named after a relative's help with the exchange houses.
Pay rent or house rent allowance in your payslip as prescribed amount, whichever is less the total amount will be deducted from your salary gross earnings. However, people living in the metro cities or for others to pay 40 percent of the salary should not exceed 50 percent. You rent the house as paying more than Rs 5000 per month, you and your rent receipts a lease document will be presented a revenue ticket. Rent receipt books for around 15 are available at any stationary store.
2. Up to Rs: Medical Reimbursement. 15,000 per year to support the bill is free. (Company 20 percent of the amount of 6.8 percent pays Fringe Benefit Tax on this amount). If you do not claim, it is taken as part of your income is taxable. There are some fake drug stores and doctors who take cash bribes to make fake medical bills are. These same people who buy drugs for diseases of legitimate excuses bills to customers are made. However, it is better than using this method reduced investment an additional 15, 000 invested, will earn you more in the long run.
3. Up to Rs: Transport allowance. 800 per month (Rs. 9,600 per year) if it is tax free conveyance allowance as mentioned in your salary. No bills are required for this amount.
4. Phone bills: the company (CTC) for its cost allocation claims you can.
(Company 20 percent of the amount of 6.8 percent pays Fringe Benefit Tax on this amount). If you do not claim, it is taken as part of your income is taxable.
5. Employee Stock Options: Company contained 33.99 percent of the purchase price on the date on the difference between market value and has to pay Fringe Benefit Tax.
6. TA left - it is free for salaried individuals and families every four years can be claimed for only two visits. Block the current year 2006-2009 for which LTA is non taxable. Also, in the mode of travel should be -
- Airline - the national airline 'Indian' economy fare
- Railway - First class AC fare
- Road - deluxe / first class public transport buses.
All allowances claimed that you cut and abandoned, including excerpts, you also need to include other sources of taxable income. Previous employer, bonuses, income from house property, painting, sales, capital gains and independent of other wage - the income as low as one or all could meet. This its "gross total income 'does.
Reduction of information about "gross total income 'is the next cut" has been called the post. How helpful to you in India salaried people can find this section to save tax? Do you have any other suggestions or information can add up to?
Slab before tax and taxable income, calculate deductions - How to avoid paying tax or as short as possible to pay in three blog posts I am writing this article. I have always found it very confusing to calculate the past and through oversights lost a bundle of cash. Here, I have all the information about the salaried people in India know how I posted the tax savings, so that a ready reference whenever I need to calculate.Calculating taxable income in IndiaFirst, you need to calculate the gross income from salary. The house rent allowance and provident fund contributions include the monthly payments are. If you are a new employee, how many months it has worked with your current employer depends on. Basic pay, dearness allowance and commissions that are fully taxable, most Indians as part of the following major components include allowances in addition to their salary. If you have not been in office some of these benefits is provided, just skip to the next step.
1. House Rent Allowance - If a portion of your salary as house rent allowance or HRA is marked and you are paying rent, the rent deposit receipt. Their children home spouse, or your own name should not be. As the biggest savings from the tax burden, it's you the friends / non-earning member whose home is named after a relative's help with the exchange houses.
Pay rent or house rent allowance in your payslip as prescribed amount, whichever is less the total amount will be deducted from your salary gross earnings. However, people living in the metro cities or for others to pay 40 percent of the salary should not exceed 50 percent. You rent the house as paying more than Rs 5000 per month, you and your rent receipts a lease document will be presented a revenue ticket. Rent receipt books for around 15 are available at any stationary store.
2. Up to Rs: Medical Reimbursement. 15,000 per year to support the bill is free. (Company 20 percent of the amount of 6.8 percent pays Fringe Benefit Tax on this amount). If you do not claim, it is taken as part of your income is taxable. There are some fake drug stores and doctors who take cash bribes to make fake medical bills are. These same people who buy drugs for diseases of legitimate excuses bills to customers are made. However, it is better than using this method reduced investment an additional 15, 000 invested, will earn you more in the long run.
3. Up to Rs: Transport allowance. 800 per month (Rs. 9,600 per year) if it is tax free conveyance allowance as mentioned in your salary. No bills are required for this amount.
4. Phone bills: the company (CTC) for its cost allocation claims you can.
(Company 20 percent of the amount of 6.8 percent pays Fringe Benefit Tax on this amount). If you do not claim, it is taken as part of your income is taxable.
5. Employee Stock Options: Company contained 33.99 percent of the purchase price on the date on the difference between market value and has to pay Fringe Benefit Tax.
6. TA left - it is free for salaried individuals and families every four years can be claimed for only two visits. Block the current year 2006-2009 for which LTA is non taxable. Also, in the mode of travel should be -
- Airline - the national airline 'Indian' economy fare
- Railway - First class AC fare
- Road - deluxe / first class public transport buses.
All allowances claimed that you cut and abandoned, including excerpts, you also need to include other sources of taxable income. Previous employer, bonuses, income from house property, painting, sales, capital gains and independent of other wage - the income as low as one or all could meet. This its "gross total income 'does.
Reduction of information about "gross total income 'is the next cut" has been called the post. How helpful to you in India salaried people can find this section to save tax? Do you have any other suggestions or information can add up to?
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