How much annual tax to be paid

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 June 2011 Thanks sir for the response,

Let me give detail:

My monthly salary: INR 1.00 Lakhs
TDS by employer: 10%

Net take home: INR 90,000.00

So, annually i am making a take home of INR 10.8 lakh

My questions:

1.If i have no extra income, shld i have to pay any additional tax , other than TDS already taken by employer?

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

04 June 2011 You have to show the other income to your employer so that they may deduct tax on your income. It will save your money as well reduce your tension.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

04 June 2011 You please calculate your total income and calculate tax. The Rates are as under -

(assuming that anonymous is a male assessee)

Upto 180000- NIL
From 180001 -500000 10% (Means on 5.00lac you have to pay 32000)
From 500001-800000 20% (on 8.00lac you have to pay 32000+300000*20%=92000)
On 800001 onwards 30% of the amount exceeding Rs 8.00lac.

(On the tax amount so calculate you have to add 3% towards Educational Cess also)

Upgrade to CAclubindia Pro. Subscribe Now!

Querist : Anonymous

Querist : Anonymous (Querist)

05 June 2011 Thanks sir for the response,

Let me give detail:

My monthly salary: INR 1.00 Lakhs
TDS by employer: 10%

Net take home: INR 90,000.00

So, annually i am making a take home of INR 10.8 lakh

My questions:

1.If i have no extra income, shld i have to pay any additional tax , other than TDS already taken by employer?

Meaning, when i have to submit my IT-return, i will have TDS certificate from employer. At that time, suppose i have not mafe any extra income in Fy, how much i will show for tax deduction?

Querist : Anonymous

Querist : Anonymous (Querist)

CA Shyam Agrawal

CA Shyam Agrawal (Expert)
Follow

05 June 2011 Dear sir,
whenever on salary employer deducts TDS then employee should not worry so much regarding tax implications.Simply employee should inform his employer regarding his all other income & loss (if any) as and when occurs.Employer will give its effect.Other income you may disclose any time before march ,so if you earn income in april and discloses it in Feb or Mar then tds will be deducted at that time and you will not have to pay.In ex.you wrote 10% and per month your salary isRs 1 lacs in this case tds is deducted at avg.rate.Its job of employer so no need to worry.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

05 June 2011 Your Salary Income is 12.00 lac.
Tax liability on Rs 12.00 lac is 212000
Add: Educational Cess @3% 6360
Total Tax Liability 218360

Your employer has to deduct complete tax on your salary income +any other income for which a declaration is made by you.

You may reduce your tax liability by investing in 80C, 80CCF and 80D savings schemes.

Querist : Anonymous

Querist : Anonymous (Querist)

05 June 2011 Dear Sir,

Your argument indicates that i have to pay additional tax other than TDS.

My case:

I am in a start-up company that will give me INR 1.00 lakh pm one amount.

It means, i will get INR 90000pm after TDS taken by company.

I have no additional income source. So, when i filling my IT return, how much i will pay?

Is it only TDS taken by company, or more than that?

Thx

Upgrade to CAclubindia Pro. Subscribe Now!

CA MANOJ GUPTA

CA MANOJ GUPTA (Expert)
Follow

05 June 2011 THE CALCULATION GIVEN BY SH PARAS JI CLERLY SHOWS THAT U HAVE TO PAY TAX BECAUSE UR EMPLOYER IS NOT DEDUCTING TAX PROPERLY WHY U ARE SO CONFUSED AFTER SUCH A CLEAR CALCUTION GIVEN BY THE EXPERT

CA MANOJ GUPTA
JODHPUR
09828510543

CA Jithesh C

CA Jithesh C (Expert)
Follow

05 June 2011 Sir,

In the example you have mentioned, prima facie it shows that it is short deducted. Here if your entire salary is taxable and you are not eligible for any exemptions or deductions it is very clear that it is short deducted. But I do not think that there are no exemptions or deduction in this case. Generaly there will have some exemptions. However, you no need to worry as it is your employer's responsibility to deduct tax from your declared income. One more point I want to mention here is that if this calculations are for the FY 2010-11, the basic exemption is only Rs 1,60,000/- and not Rs 1,80,000/-.