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Tax calculation after free limit

prakash (B.Com) (132 Points)

04 September 2015

Hello Exerts,

I have query regarding TAX calculation.

IF my net take home Salary is 6,00,000 Per Anum.

So Tax calulcated like ,

6,00,000 ( Net Salary )

-2,50,000 ( Free Limit)

_____________________

3,50,0000

It will be calculated on 6,00,000

Thanks,

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4 Replies

Piyush Tanwar (Assistant Manager - Accounts) (1432 Points)
Replied 04 September 2015

Tax will be calculated on Rs. 600000 as per the slab rate.

Miss Rinkal (Student) (1304 Points)
Replied 04 September 2015

Your tax amount for Fy 2014-15 will be 600000 - Investments such as PF, PPF, NSC, Mediclaim etc. (Refer Deductions under Chapter VIA) - 250000 (Free limit)

Assume Chapter VI A deductions are 165000 then your tax amount would be

600000 - 165000 = 435000 - 250000 = 18500

Since your net income is 435000 which is below 500000, you can claim rebate u/s 87A up to Rs 2000/-

And therefore total tax would be 16500 + 3% cess = 16995/- r/o to Rs 17000/-

Your Self Assessment tax would be 17000 - TDS - Advance Tax paid if any

CMA P Y S V S VARMA (cost accountant) (173 Points)
Replied 07 September 2015

As per Income Tax act 1961,6lac-ded u/s VI-A - slab ded upto 2.5 lac balance is taxed @ 10% upto amount of Rs.2.5 lac i.e 25000/- less 87A ded @ 2000/- tax rebate can be applied as said by Rinkal and Form ITR-1 Sahaj is to be filed with IT dept...