I have been through this article, no doubt it is very informative, however as i understand as per the new tax law implemented for the financial year 04-05, a person whose annual income is less than 1,11,000 after the standard deductions and other deductions he/she does not have to pay any tax.
I am presently working for a BPO in Bangalore and have recently submitted my investment proof where I am not paying any tax, Say for ex. I am drawing a annual income of Rs. 1,30,000 + other income = 30,000 which comes to a total of 1,60,000
My details are as follows:
Income: Annual Income = 1,30,000 Other = 30,000
Total = 1,60,000
Deductions: HRA = 11,250 40% of basics Medical = 15,000 LTA = 6,000 Standard Ded = 30,000
I would like to know what exactly is taxable income. Is it the gross salary which my company gvien me in my offer letter or is it actual in hand amount . this part has been very confusing for me. I have an pakage of 2.31 lakhs but it includes every from PF, Insurance of company, travel allowance etc. So can you please clarify
rather what i would suggest is that you should upload a prgrameed file wherein we will introduce the amount and the tax may be calculated. thank you. kind regards srbokare
If my payment is Rs.10000 p.m., then will tax be calculated on 120000? What about HRA, DA, etc. Will they be get diducted first and then Tax will be calculated? or Tax calculation is based on Basic salary? Please reply for my query.
I am a self-employed medical transcriptionist, and have been earning income in US$ through wire transfers in my bank. Is there any income tax payable on the amount realized in INR, after deduction of bank charges (10 to 12$ per month). Please advise.
Excellent article!! NOw every 1 can plan accordingly and know how much of tax is going out from their income!! Thanx a lot!! We wld encourage more of such articles.
