Tax liability

This query is : Resolved

CA.Karan Dawar (Querist)
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03 January 2012 Female Assessee

Basic- Rs. 8167/-
HRA- Rs. 4083/-
India Allowance - Rs. 8223/-
Conveyance Allowance- Rs. 800/-
Special Allowance- Rs. 687-

Gross Salary per month Rs. 21960/-
Deductions:
PF 12% Rs. 980/-

Net Salary PM Rs. 20980/-

Rent paid in metro city is rs. 3000 per month
what will be the tax liability FOR ASS YEAR 2012-13 if the same salary was given throughout the year.

Prof. Bajaj

Prof. Bajaj (Expert)
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03 January 2012 Total Tax liability = 10.3% of Rs. 16160 i.e. Rs. 1664.48

This can be brought down to zero by investing those Rs. 16160 in tax saving instruments u/s 80C or 80CCF.

CA.Karan Dawar

CA.Karan Dawar (Querist)
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03 January 2012 Thank you, but sir how 16160/-
what is the treatment for India allowance.

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Prof. Bajaj

Prof. Bajaj (Expert)
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04 January 2012 India Allowance is treated as normal income.

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I will mail u the break up.