How Calculate Your Income from salary for Income Tax

Every Salaried person is always worried about his tax liability and one of the basic concern is what will be his taxable salary under income tax act, and for which he always need some consultation from tax advisors.

Generally salary has few basic components which one must know in order to calculate his taxable salary. Income Tax Return for AY 2013-14 for Salaried Person

These are Basic Salary, Dearness Allowance, House Rent Allowance (after deduction, if you are residing in rented house), Bonus, Salary in lieu of leave (Not taxable upto specified limits) and any other benefits or perquisite less deduction for entertainment allowance and professional tax. View Form 26AS TDS Deduction Status Online

Computation of salary Income

Basic Salary×××××
Dearness Allowance×××××
House Rent Allowance×××××
Arrears of salary×××××
Advances of salary×××××
Add: Gratuity×××××
Leave encashment×××××
Value of perquisite×××××
Gross Taxable salary×××××
Less: deduction allowed u/s 16×××××
Deduction allowed u/s 80C×××××
Income chargeable under the head salary×××××

6 thoughts to “How Calculate Your Income from salary for Income Tax”

  1. Great. Explained in such a simple and systematic way that all the topics are very easy to understand and straight away going to the memory. Hats off to your team.

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