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How To Calculate Salary Income Tax

By Author: AllIndiaITR
Total Articles: 1
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It always feels good to get your salary. Doesn’t it? So, why shouldn’t paying tax on your income feel good too?

Keep reading to clear all your doubts on salary related income tax.

In India, income tax deduction by employers on the salary of employees is done mandatorily. The employer needs to deduct the applicable amount of income tax based on the estimated income of the employee and deposit the same with the government.

As this tax is deducted by the income provider, income tax paid at source can also be called TDS (Tax Deducted at Source).

The fiscal year 2017-18 tax-slab rates are as follows:

● for individuals below 60 years:

Annual Income Tax Rate
Up to Rs.2,50,000 Nil
Rs.2,50,001-Rs.5,00,000 5%
Rs.5,00,001-Rs.10,00,000 20%
Above Rs.10,00,000 30%

● for individuals from 60 years to 80 years:

Annual Income Tax Rate
Up to Rs.3,00,000 Nil
Rs.3,00,001-Rs.5,00,000 5%
Rs.5,00,001-Rs.10,00,000 20%
Above Rs.10,00,000 30%

● for individuals over 80 years and above

Annual Income Tax Rate
Up to Rs.5,00,000 Nil
Rs.5,00,001-Rs.10,00,000 20%
Above Rs.10,00,000 30%

You can find more tax-related information on more interesting topics here.

The government provides tax exemption (under Section 80C and 80D) which allows a person to apply for exemption on tax that is based on the kinds of investment he has made in that financial year. We can begin by subtracting the exemption amount from total annual earnings.

It is important for the employee to get a declaration and proof from individuals to approve tax exemption. The categories mentioned below are applicable for exemption:

● House Rent Allowance – If an employee pays rent for accommodation and is entitled to HRA from the employer, the employee can declare this amount for tax-exemption
● Conveyance or Travel Allowance – This can be declared for tax-exemption if the employee is provided with the travelling allowance
● Medical Allowance – This is applicable when the employee produces medical bills for tax exemption

You don’t have to be a math genius to do your taxes! You can easily hire a tax expert. We, at AllIndiaITR, guarantee you the best rates in the market for highly professional financial services like income tax efiling, online TDS payment, income tax return, NRI plan, income tax refund, income tax calculator, etc.

Our online platform is owned and operated by Corwhite Solutions Private Limited.

More About the Author

AllIndiaITR is the one stop for all your tax troubles. We understand how confusing it can be for the common man to file ITR, Tax Filing, Efile Income Tax Return not to forget the time spent in looking for meanings of income tax related terms.

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