Sir
My CTC 300000 per annum, and i paying house rent of rs.7000.00 (for year Rs. 84000.00) per month and have medical bills upto Rs.10000.00, so kindly help us to how much can i pay tax.
Manoj Mehta
(Head Of Department (Accounts & Finance))
(1479 Points)
Replied 13 March 2014
Dear Sir
You dont have to worry about this as your employer will calculate the same and deposit the amount of deduction of tax to govt. Also you have to see HRA(house rent allowance calculation for the same which require certain info(s).
I hope your doubt is clear
Regards
Ashwini. K
(Partner in KGR&CO)
(96 Points)
Replied 13 March 2014
Dear Sir,
I want to bring the following points to help you ascertain your answer.
1. House Rent Allowance : Under section 10(13A) the least of the below would be allowed as deduction :
a) excess of rent paid over 10% of your salary.
b) If accomodation is in Delhi, Kolkata, Chennai or Mumbai, then 50% of Salary.
c) Actual allowance received from the employee.
Kindly note that this calculation of HRA is only when your employer pays you HRA allowance. You can find this in your monthly Salary Slip.
2. If you ar in Receipt of HRA you cannot claim deduction under section 80GG of the Income Tax act, 1961.
3. Deduction under section 80GG: Only when HRA allowance not received from the employer. Deduction is least of the following.
a) Excess of Rent paid over 10% of the Total Income.
b) 25% of Total Income.
c) Rs 2,000/- per month.
4. Deduction under section 80D : Any amount paid upto Rs.5000/- towards preventive health check up of the assessee or his family is allowed as deduction. Hence even if you have spent more than 5000/- deduction is available only upto Rs5,000/-
5. TDS on salary is normally deducted by the employer if you are liable to pay tax. This facility is made to reduce the burden on the employee.
6. The information provided in your question is not sufficient to calculate the actuall income tax payable by you.
I hope these points which I mentioned here would help you in arriving at the correct taxable amount and the tax payable thereon.
Shajan Varghese
(.)
(31 Points)
Replied 15 March 2014
Does the employee has to produce the rent receipts to claim this benefit ?
Original or copies would do ?
Ashwini. K
(Partner in KGR&CO)
(96 Points)
Replied 20 March 2014
Yes you need to produce the documentary proof that you are staying in rented house to your employer to claim deduction. This would help in assessing your tax liablilty appropriately and correct amount of TDS could be deducted from your salary.
Documents like rent agreement and rent receipt would be valid for claiming the deduction.
Photocopies of the above documents would be acceptable.
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