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Calculation of income tax

Sunil (Student Others) (27 Points)

01 March 2013

Hi Gurus,

Myself Sunil,Age 28 years.

I am getting salary 45k inhand and salary breakup as follows per month / annual :

Basic =            11250 = 135000
HRA    =                   3938 = 47256
Medeical Allow =                 1250 = 15000
Conveyance Allow =          800 = 9600
Project Allowance =      27763 = 333156

My Investment details as follows :

LIC premium total = 40,000.00

Rent per Year = 1,20,000.00

Please let me know my total tax that I have to be pay to Govt.

Thanks in Advance.

Sunil

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7 Replies

Giridhar S Karandikar (Team Lead) (7548 Points)
Replied 01 March 2013

Dear sunil, you need to provide the gross salary details(salary before deductions) as per your pay-slip, as tax needs to be calculated on gross salary and not on in-hand salary.

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Mihir (Wealth Manager) (5293 Points)
Replied 01 March 2013

Basic = Rs. 135,000

HRA

47,256 actually received

120,000 - (10% of basic 135,000) = Rs.15,000

67,500 (50% of basic)

Least of the above is Rs. 15,000 , therefore taxable HRA is 32,256 (47256-15000)

Medical allowance - exempt

conveyance allowance - exempt

project allowance - Rs. 333,156

Total income = Rs.500,412

Deductions u/s 80C Rs. 40,000

Taxable Income Rs. 460,412

Tax liability Rs. 26,823

Correct me if I am wrong

Thanks

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Sunil (Student Others) (27 Points)
Replied 02 March 2013

Hi Gurus,

Thanks for your Reply.

I am working as a software engineer. I am getting salary through cheque from my consulatancy. Is there any liability to deduct (consultancy people) incometax from my salary ?

I thought if consultancy is giving salary through online banking then only they are eligible to deduct incometax from my salary.

They are deducting professional tax 200 rupees.

Giridhar S Karandikar : The above mentioned is the my salary structure. There are no other details mentioned in my offer letter as well in payslip.

Mihir : Is project allowance taxable ?

Thanks iin Advance.

Sunil

Giridhar S Karandikar

Read more at: /forum/details.asp?mod_id=241296#.UTFsW1cwAvk

veny gupta (CA FINAL STUDENT) (49 Points)
Replied 02 March 2013

Calculation by Mr. Mihir is correct except for Medical Allowance.

Medical Allowance is fully taxable.

And also computation of HRA depends on city where you are placed.

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Gunjan Jain (CA) (127 Points)
Replied 02 March 2013

Hi Sunil,

Mihir calculation is correct to some extent. HRA depends on place so first of all tell me where are you living. second thing you didn't mention how much employee PF has been deducted by employer. Fixed medical allowance is fully taxable but reimbursement is exempt upto Rs. 15000. Normally company provide Medical reimbursement facility and at the year end demands for bills.

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Sunil (Student Others) (27 Points)
Replied 05 March 2013

Hi Gurus,

Thanks to all.

I am living in kolkata.

Infact my company is not at all deducting any PF.

they are deducting only professional tax as 200 rupees only.

My question is : Is there any laws to deduct income tax from my salary in this case (without they are not deducting any PF) ?They are giving salary through check payment.

Thanks,

Sunil.