KNOW YOUR INCOME

TAX LIABILITY
 WHAT IS CONSIDERED AS
YOUR INCOME
CONTENTS
SALARY =(Basic + HRA+ Conveyance + Uniform +
Medical)
BONUS
INCENTIVES
CPL INCASHMENT
LEAVE INCASHMENT= (Exempt in case of
retirement up to 3,00,000/-)
 WHAT IS CONSIDERED AS
YOUR INCOME
CONTENTS
PERKS (CAR) = ( Installment of car paid by the
company )
INTEREST ON LOAN = (Loan provided by the
company, with or without interest and difference of
interest rates fixed by SBI less interest as per company
policy is become income of individual)
 DEDUCTIONS ARE ALLOWED
DEDUCTION IN CASE OF
HOUSING LOAN

1. ACTUAL INTEREST PAID

2. ACTUAL PRINCIPAL PAID
(Both items are allowed as deduction)
1. Interest maximum up to 1,50,000.00 or
actual paid is directly deducted from taxable
income.
2. Principal is considered as deduction in U/S
80C with in the maximum limit of 1,00,000/-.
 DEDUCTIONS ARE ALLOWED
DEDUCTION U/S 80 C, 80CCC,
80CCD = (1,00,000/- MAXIMUM
AMOUNT)
1. EMPLOYEE'S PROVIDENT FUND
2. LIFE INSURANCE( LIC of spouse and children
is also eligible if both are dependent on individual)
3. NSC
4.PUBLIC PROVIDENT FUND
5.TUTION FEE OF CHILDREN
6. HOUSING LOAN PRINCIPAL PAID
7.ANY OTHER INVESTMENT
(EXEMPT U/S 80C)
DEDUCTIONS ARE ALLOWED

MEDICLAIM POLICY

DEDUCTION U/S 80 D = (15,000/- OF ITS

OWN, SPOUSE AND DEPENDEDT
CHILDREN+ 15,000/- ADDITIONAL OF
HIS PARENTS )
 DEDUCTIONS ARE ALLOWED
DEDUCTION U/S 80 G NO
MAXIMUM LIMIT

1. DONATION TO CERTAIN FUND OR

CHARITABLE INSTITUTION (100%
Deduction is allowed in some cases and in some
cases only 50% deduction is allowed.)
 RATES ARE APPLICABLE
RATES FOR TAX CALCULATION
IN CASE OF MALE
UPTO 1,60,000 IS NIL
FROM 1,60,001 TO 3,00,000 10%
FROM 3,00,001 TO 5,00,000 20%
FROM 5,00,001 ONWARDS 30%
E. CESS IN TAX AMOUN IS 3%
 RATES ARE APPLICABLE
RATES FOR TAX CALCULATION
IN CASE OF FEMALE
UPTO 1,90,000 IS NIL
FROM 1,90,001 TO 3,00,000 10%
FROM 3,00,001 TO 5,00,000 20%
FROM 5,00,001 ONWARDS 30%
E. CESS IN TAX AMOUN IS 3%
 INCOME TAX (INDIVIDUAL'S)

EXAMPLE FOR CALCULATION

DETAIL OF MR A SALARY PER MONTH
BASIC SALARY 20000
HRA + 10000
CONVEYANCE + 10000
UNIFORM + 5000
MEDICAL + 5000
TOTAL 50000 PM
 INCOME TAX (INDIVIDUAL'S)
EXAMPLE FOR CALCULATION
DETAIL INCOME OF MR A
ANNUAL SALARY = 50000 * 12 = 6,00,000.00
BONUS RECEIVED 20,000.00
INCENTIVE 20,000.00
LEAVE INCASHMENT 5,000.00
CPL INCASHMENT 5,000.00
CAR INSTALMENT 5000 PM 60,000.00
TOTAL INCOME 7,10,000.00
 INCOME TAX (INDIVIDUAL'S)
EXAMPLE FOR CALCULATION
MR A HAVE THE FOLLOWING DEDUCTION
HOUSE RENT PAID 8000 PM *12 96,000.00
LIC PREMIUM PAID 55,000.00
DEPOSIT IN PPF 30,000.00
PF DEPOSIT BY COMPANY 9,360.00
NSC 20,000.00
MEDICLAIM POLICY 10,000.00
DONATION TO CHARITABLE 1,000.00
INSTITUTE
 INCOME TAX (INDIVIDUAL'S)
EXAMPLE FOR CALCULATION OF HRA

1. RENT PAID FOR THE YEAR 96,000.00

2. HRA RECEIVED IN THE YEAR 1,20,000.00
3. RENT PAID LESS 10% OF BASIC
SALARY
RENT PAID = 96,000.00
10% OF BASIC PAY = 24,000.00 72,000.00
(20000 *12= 240000 *10%)

Least of the following i.e 72,000/- is exempt for

deduction.
 INCOME TAX (INDIVIDUAL'S)
EXAMPLE FOR CALCULATION OF HOUSING
LOAN.

1. INTEREST PAID IN THE F/Y 96,000.00

2. PRINCIPAL PAID IN THE F/Y 42,000.00
(In this case following transduction are considered)
1. Employee must be the owner of the house.
2. Benefit of Housing loan is allowed when the
possession of the house is taken by employee.
3. Principal paid is become the part of deduction U/S
80 C with in the maximum limit of 1,00,000.
4. Only one benefit is allowed from( housing loan or
house rent).
 INCOME TAX (INDIVIDUAL'S)
EXAMPLE FOR CALCULATION OF 80 C
DEDUCTION

LIC PREMIUM PAID OF SELF 35,000.00

LIC PREMIUM PAID OF CHILD 10,000.00
LIC PREMIUM PAID OF SPOUSE 10,000.00
DEPOSIT IN PPF 30,000.00
PF DEPOSIT BY COMPANY 9,360.00
NSC 20,000.00
TOTAL 1,14,360.00

Only 1,00,000/- is allow as deduction

 INCOME TAX (INDIVIDUAL'S)

EXAMPLE FOR CALCULATION

CALCULATION FOR 80 D

MEDICLAIM POLICY 10,000.00

10,000/- is allowed as deduction.

 INCOME TAX (INDIVIDUAL'S)

EXAMPLE FOR CALCULATION

CALCULATION FOR 80 G

DONATION OF CHARITABLE INSTITUTE

DEDUCTION ALLOWED IS 50%

500/- Is allowed as deduction.

 INCOME TAX (INDIVIDUAL'S)
EXAMPLE FOR CALCULATION
TOTAL INCOME A 7,10,000.00

LESS DED OF HOUSE RENT 72,000.00

LESS DEDUCTION U/S 80 C 1,00,000.00
LESS DEDUCTION U/S 80 D 10,000.00
LESS DEDUCTION U/S80 G 500.00
TOTAL DEDUCTION B 1,82,500.00

TOTAL TAXABLE INCOME A- B = 5,27,500.00

IS TAXABLE INCOME
 INCOME TAX (INDIVIDUAL'S)
EXAMPLE FOR CALCULATION
TAXABLE INCOME 5,27,500.00

TAX UP TO 1,60,000 IS NIL

1,60,001 TO 3,00,000 = 140000 *10 % 14,000.00
3,00,001 TO 5,00,000 = 200000 *20% 40,000.00
5,00,001 TO 5,27,500 = 27500 * 30% 8,250.00
TAX = 62,250.00
CESS 3% = 1,868.00
TOTAL TAX = 64118.00
TOTAL TAXEQUILY DEVIDED IN 12 MONTHS
64118.00 / 12 = 5345/- P M
NOW YOU ARE ABLE TO
CALCULATE YOUR OWN TAX
LIABILITY ACCORDING TO
THESE STEPS.
From : Accounts
Department
(Revenue Cell)