Answer (1 of 8): Income tax declaration Income tax declaration is required to be submitted by the Employee to its Employer which is generally submitted at the beginning of the Financial Year. In such a declaration the employee should declare all the tax-saving investments which he/she proposes t...

4. EXEMPTIONS FROM SALARY INCOME. 4.1 Section 10 of the I.T. Act provides for certain categories of payments to be exempt from taxation, either wholly or partly. Such payments are not to be included under the head 'salary' for computing the tax deductible. Some of these are listed below and are discussed in detail in Chapter-5 of this booklet.

Income received from consultancy is termed as income from profits and gains of business or profession whereas income from employment is termed as salary income. A salaried employee can avail tax ...

What are the current income tax rates for residents and non-residents in India? Tax rates for individuals are common for all, irrespective of their residential status. The income tax rates for assessment year 2021-22 (i.e. tax year 2020-21) are as follows: Income tax rates for the tax year 2020-21. Normal Provisions:

Salary paid tax free. If employer pays tax on behalf of the employee on salary income,then the employee income from salary will consist of his /her salary income plus tax paid by the employer. However tax paid on non monetary perquisites on behalf of employee by employer then,this would be exempt in the hands of employee as per section 10 ...

Gross salary, however, is the amount paid before tax or other deductions and includes overtime pay and bonuses. For instance, if an employee has a gross salary of Rs. 40,000 and a basic salary is Rs.18,000, he or she will get Rs.18,000 as fixed salary in addition to other allowances such as House rent allowance, conveyance, communication ...

Income Tax on Seafarer for FY 2020-21. The taxability of salary received by a seafarer is based on the residential status of the seafarer. The salary received by a resident seafarer will be taxable as per the laws of the Income-tax department. No special exemption is available. The salary of a non-resident seafarer will NOT be included in the ...

In India on the other hand there is a slab rate system, where for income below INR 2.5 lakhs per annum the tax is zero percent, for those with their income in the slab rate of INR 2,50,001 to INR 5,00,000 the tax …

20 March 2008 The definition of income under the Income Tax Act is of an inclusive nature. ie apart from the items listed in the definition, any receipt which satisfies the basic condition of being income is also to be treated as income and charged to income tax accordingly. Income includes:-*Profits or Gains from business or profession including any benefit, amenity, perquisite obtained in ...

Step 2: Calculate tax payable on the total income, excluding additional salary for the Assessment Year 2019-20 in the year it is received. ` 1,23,240 After knowing the amount after arrear, you need to calculate the tax over the same. Step 3: Calculate the difference between Step 1 and Step 2. (` 1,45,080 - 1,23,240) = ` 21,840.

Its premium is borne by the employer and is a part of CTC. Therefore, it is deducted when calculating the take-home salary. 12. Income Tax. The tax imposed on a professional's income is known income tax. Generally, employees get their salary after income tax have been deducted by the organisation. This is called Tax Deduction at Source (TDS).

Income Tax Calculation for Senior Citizens FY 2020-21. The income tax for senior citizens is calculated based on the basic salary, house rent allowance, fixed allowances, and other sources of income. However, the senior citizen receives higher exemption limit compared to individuals who are below 60 years old.

Reporting Salary on Taxes. As per the Income Tax Act, 1961, there exist two kinds of taxes in India: Direct Tax: It is borne and paid directly by a taxpayer to the government.It includes wealth tax, gift tax, income tax, etc. Indirect Tax: An individual pays this tax to the government through an intermediary.The Government of India introduced the GST Act as an all-encompassing indirect tax.

Income tax definition is - a tax on the net income of an individual or a business. How to use income tax in a sentence.

Pls explain me as per income tax rule I am waiting your reply. Tanks, 16th May 2009 From India, Pune. adv.navin. 4. 2. Dear Dilip, As Professional tax is always state specific and the definitionof salary or wages may vary from state to state. But on a general basis following is the definition : Salary or Wages includes pay…

under India-US DTAA and the assessee failed to provide the TRC from the US tax authorities. Aggrieved by the order, the assessee preferred an appeal against the order before Commissioner of Income-tax (Appeals) - 12 – CIT(A). The CIT(A)-12 looked into the facts of the case and allowed the salary …

Charging Section of Salary:-. As per sec 15 of the Income Tax Act 1961 salary is taxable:-. a) On due or receipt basis whichever is earlier. b) Any arrears of salary received are fully taxable in the year of receipt subject to relief u/s 89 (1). Salary in common parlance means any amount paid by an employer to his employees in lieu of services ...

a) Salary income is chargeable to tax on "due basis" or "receipt basis" whichever is earlier. b) Existence of relationship of employer and employee is must between the payer and payee to tax the income under this head. c) Income from salary taxable during the year shall consists of following: i.

Thus income tax payable (inclusive of surcharge would be Rs. 44,88,000/- (44,00,000 + 88,000). Taxable Income is Rs. 15 crores: In this case, since the taxable income is more than 10 crore, the company is liable to pay surcharge @5%. The income tax on Rs. 15 crores is to be calculated as per normal tax rate of 40%, which amounts to Rs. 6 crores.

File Income Tax Returns online with ClearTax. ClearTax is fast, safe and very easy to use. Save money. ClearTax handles all cases of Income from Salary, Interest Income, Capital Gains, House Property, Business and Profession. ClearTax maximize your deductions by handling all deductions under Section 80 like section 80C, 80D, 80CCF, 80G, 80E, 80U and the rest.

Income tax is the tax you pay on your income. Income Tax is levied on a person who was in India for 182 days during the previous tax year or the person who was in India for at least 60 days during the previous tax year and for at least 365 days during the preceding 4 years will be taxed.

In India, Income Tax was first time introduced in the year 1860 by Sir James Wilson in order to meet the loss caused on account of 'military mutiny' in 1857. In the year 1886, a separate Income Tax Act was passed, this act was in force for a long time, subject to the various amendments from time to time.

Every Indian citizen is required to pay an income tax if he earns an income. An income generating entity is called an assessee which, under Section 2 (7) of the Income Tax Act, 1961, is defined as a person or entity by whom any tax or any other sum of money is payable under this Act.

Surcharge: 10% of income tax should total income surpass Rs. 50 lakhs up to Rs. 1 crore. Surcharge: 15% of income tax should the total income surpass Rs. 1 crore. Income Tax Slab - Senior Citizens (60 Years Old or More but Less than 80 Years Old) for FY 2018-19

Income Tax is calculated based on the total take-home amount and not just basic. As it is a component of total salary, it is taxable. This is the reason companies don't put basic higher than 40%-50% of CTC.

Allowances or perquisites paid or allowed as such outside India by the Government to a citizen of India for services rendered outside India are exempt from tax. Students may remember that in such cases under section 9(1)(iii), the income chargeable under the head 'Salaries' is deemed to accrue in India.

Answer (1 of 4): Your current tax liability will be Rs. 66950 (including 3% cess). However, you can reduce the tax liability by various investments. Some of the basic and most common Tax saving investments are as follows : Under Section 80C - upto Rs. 1,50,000 in total. Life Insurance Premium...

Income from Salary 1. Income Tax Income from Salary -: Complied By :- Prof. Rajesh Jain [email protected] 2. Heads of Income :Chargeability Income Head Chapter under Income Tax Act Sections Charging Section Income from Salary IV-A 15-17 15 Income from House Property IV-C 22-27 22 Profit & Gains from Business & Profession IV-D 28-44D 28 Capital Gain IV-E 45-55A 45 & 46(2) Income …

Just like other incomes accrued in India, the pension income is also taxed according to the Income Tax slabs fixed by the Government of India. All incomes that come under the head Salary (including Pension) are taxed upon, under the Section 192 of the Income Tax Act. The income tax on pension amount is levied according to the below-given tables.

Tax Talk Nri Stranded In India Due To Pandemic You May Need To Pay Income Tax The Financial Express from images.financialexpress.com That said, 50 states income ta. In the united states, every working person who earns more than a certain amount of money each year needs to pay income taxes to the federal government.

The Income Tax Act allows minimum of the following 3 as deduction in respect of the HRA paid to employees. –. Actual house rent allowance received from your employer. Actual house rent paid by you minus 10% of your basic salary. 50% of your basic salary if you live in a metro or 40% of your basic salary if you live in a non-metro.

Amendment in the Definition of NRI as per Income Tax. The Income Tax Act amendment of 2020 is for NRIs whose taxable income in India exceeds Rs. 15 Lakhs, The amended criteria are as follows: If the individual is in India for at least 120 days (compared to the …

INCOME FROM SALARIES. Any remuneration paid by an employer to his employee in consideration of his service is called Salary. It includes monetary value of those benefits and facilities provided by the employer which are taxable. Section 15, 16 and 17 of the Income tax act, 1961 deal with the computation of income under the head Salaries.

The term salary is defined under section 17 (1) of the income tax act to include following items as salary; Wages. Any annuity or pension. Any gratuity. Any fee, commission, perquisite or profit in lieu of salary or in addition to any salary or wages. Any advance of salary. Any payment received by an employee in respect of any period of leave ...

In India, the government has levied direct tax under the name Income Tax on a person who is known as "assessee" under Income Tax Act, 1961 and Income Tax Rules, 1962. The assessee has been defined under Income Tax Act, 1961 as:

The above definition of word 'salary' U/s 17(1) includes the above mentioned items. These can be explained in following manner : Wages—any amount received by a person for work done or job rendered is called wages. It may be received under the name of 'Pay', 'Basic Pay', 'Salary', 'Basic salary' or …

Section 17(2) of the Income Tax Act,1961 has given an inclusive and not exhaustive definition of salary which states that Salary includes: Wages; Annuity or Pension; Gratuity; Fees or Commission, perquisites or profit in lieu of salary; Advance Salary; Any amount transferred from unrecognized provident fund to recognized provident fund.

THE DEFINITION OF "SALARY". (d) Value of perquisites specified in sub-section (2) of Section 17 of the Income Tax Act. (iii) of clause (2) or proviso to clause (2) of Section 17. As per the Finance (No. 2) Act, 2004, the contribution made by the Central Government in the previous year to the account of an employee under the pension scheme in ...

As per Section 2 (9) of the Income Tax Act, 1961, states that assessment year means the 12 month period beginning on the 1st day of April every year. The assessee is required to file the income tax return of the previous year in the assessment year. As per S.2 (34) of Income Tax Act, 1961, unless the context otherwise requires, the term ...