What is tax ?

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yogendra prakash sharma (Querist)
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28 July 2011 sir, i am a govt. employee. my gross salary in financial year 2010-2011,is 278087 my h.r.a. is 22024 and i have receipt of home rent of 24000,my saving is 37718. so what will be my income tax according assesement year 2011-2012.please calculate.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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28 July 2011 For HRA purpose Basic Salary and DA -which is forming part in the retirement benefits,
and also known as DA in terms of employment
are the required details to be provided in such cases.

I think that in your gross salary if Rs 38000/ is included towards other allowances or perquisites, you will not get benefit of HRA. Because where rent paid is less than 10% of Basic Salary +DA(T) , HRA becomes taxable fully.

Your Total Income

278087+22024-37718= 262393
Tax Payable =10239+307=10546 or say 10550.