My Life, My Decisions
                                                 (A Life Time Decision)

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The future depends on how we plan the present.If the planning and decisions are right, the future is definitely good.              ...A renowned Economist.

Tax Computation for Salary Class:



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      Salaried class probably is the most worried and concerned about tax. They need to plan     their savings from the tax implication standpoint, so that tax liability becomes minimum.

To enable HR/Accounts department calculate their tax liability, all the relevant documents for Financial Year i.e. Savings/ Investments etc. must be submitted on time to compute the tax well in time and inform the individual his/her tax liability based on the submitted documents. Documents (photocopies of Savings and Payments) required to be submitted are:



Example- Tax Calculation

Computation of Taxable Income
Description Break-up Amount
INCOME FROM SALARY
Salary Income 50,000 x 12 6,00,000
INCOME FROM OTHER SOURCES
Saving A/c Interest- ICICI Bank 1800
Saving A/c Interest- SBI 585
FDR Interest- ICICI Bank 15,345
FDR Interest- SBI 20,100 37,830
GROSS TOTAL INCOME 6,37,830
Less: Deduction under Chapter VI-A
Deduction u/s 80C
Insurance 50,000
PF/PPF etc. 1,50,000 1,50,000
U/S 80TTA (Interest on savings account, if more than Rs.10,000/-p.a.) 2,385 2,385
U/S 80D (Payment of Medical Insurance Premium ) 20,000 23,300
NET INCOME 1,75,685,000 4,62,145

(A)--- Tax Due (462145-250000)*.1 21,215
(B)--- Education Cess( 3%) 636
(C)--- Tax Payable (A+B) 21,851
(D)--- TDS Deducted (if any) 0
NET TAX PAYABLE (C-D) 21,851


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