Can you show tax computation

( All figures in Rs. )

An employee gets monthly basic salary of 17670, HRA per month 8835, PF per month (Employer's contribution) 2120, Reimbursable flexible benefit 186500 per annum.

Monthly income tax on above of 2333 and professional tax of Rs. 200 per month gets deducted from his salary.

His bank account gets credited by 37394 per month after above deduction.

Can you show the working on computation of 2333 above ? ( on a friendly note, take it as a challenge if you are tax prone. All the best! )

Replies (3)

Can you give details of "Reimbursable flexible benefits of Rs. 186,500/-" ?

Hi Mihir !

Thanks for showing your intrest. RFB is monetary pay by the Company. Employee can either set aside part of its amount for cliaming expense (eg.medical cliam, car petrol etc)  or can take the full amount without making any claim. In the given case employee has opted for no claim.

Go ahead !

Basic salary = Rs. 17,670/-

HRA = Rs. 8835/-

Reimbursement = Rs. 186,500/- / 12 = Rs. 15,542/-

Total income = Rs. 42,047/-

Less: PT = Rs. 2,500/- (Rs. 200 x 11 + 300 - because 300 is paid in February)

Total Income = Rs. 39,547/- x 12 = Rs. 474,564/- 

Tax payable = Rs. 26,220/-

Monthly TDS deduction = Rs. 26,220 / 12 = Rs. 2,185/-

 

If the TDS is calculated on income plus PT then tax payable shall be Rs. 31,840/-

Monthly TDS deduction comes to Rs. 31,840 / 12 = Rs. 2,653/-

 

Wait for more replies.

 

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