Income tax on Salary

Tax queries 661 views 2 replies

Rajenprasad

O.M

25 Points Joined January 2010

Hello Sir,

My package is 6.3L P.A. and the break up as follows,

Basic :6086
DA- 839
HRA-1039
CA-2770
SPA-5000
OTH-26766

All together Gross salary is Rs.52500 and the deductions as follows,

PF-831
IT-4500
Total dedcutions are Rs.5331/ PM average.

Here would like to know the following,

According to the above salary parameters, how much the Income tax i have to pay?
How much the standard tax allowance given by the govt?
What are the expenses / ways are exempted from the Tax?
I doesn't claim any loan so far.. but the TDS on salary been dedducted on every month from Apirl 2009 to upto December 2009.

If i go for the loan before this accounting year, shall i get any benfit from the TAX.

Your valuable advise may help out me from the hugh taxes. Thanks in advance.

Regds

Rajenprasad

Replies (2)

Amir

Learner

4016 Points Joined December 2009

Dear Rajenprasad,

1) Ur tax liability will depend upon ur savings which u can make..At present employer is deducting Rs. 4,500 per month this means Rs. 54,000 for the year

2) Income upto Rs. 1,60,000 is exempt.

3) Ways to reduce ur Tax -

a) If u r staying in a rented house then produce rent receipts to ur employer..

b) Investments upto 1,00,000 are eligible for deductions - Types of Investments-

i) LIC Policy

ii) PPF

iii) 5 Yearly Fixed Deposit

iv) ELSS Mutual Funds,

v) Principal Repayment of Housing Loan, etc

4) Deduction in respect of Housing loan is allowed from the year u purchase or completes the construction of house.

Hi Rajen.....one more thing i want to tell you that the PF amount should be deducted @ 12% of Basic + DA and Limit is Rs.6500 which means company can deduct only Rs.780 (6500*12%).....which not in your case....Plz chk with your company for the same...Also total of your salary is Rs.42500 Plz total again......for deductions from salary i agree wid Amir apart from dat u can also claim mediclaim u/s 80D upto Rs.15000 fro u, ur spouce and ur childrens...and if paid for ur parents also den extra Rs.20000 (If Sr. Citizen) or 15000/- ......... :-)