1. #1
    Unregistered

    How is tax calculated for salary income? Is it calculated on Basic salary or total salary?

    I am doing my B.Com and have Income tax as one of the subject. I have studied about this salary income. I just want what is this Income from Salary and how is it calculated. Is it calculated on basic salary or on total salary? Please help me in understanding this? What is the difference between basic salary and total salary?

  2. #2
    Puru Thaman Array
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    Jul 2012
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    Re: How is tax calculated for salary income? Is it calculated on Basic salary or total salary?

    Hi,



    --Yep your Income Tax is Calculated from your Total Salary only--


    --Income Tax is the Payable Tax for Every Citizen of INDIA from his Monthly Salary--


    --Income Tax are Requested to Pay yearly once between the Financial Year--


    --Such Income Tax is Calculate from the Employee based on his Total Salary rather Basic alone--


    --Some sort of % are Deduced from the Employee Salary for the Income Tax--


    --Income Tax Slab varies for Age Group & only that % is Deduced from every Individual--




    ::Please Visit the Below links to Calculate the INCOME TAX for your Salary::



    http://www.merisalary.com/index.php?option=com_hellow


    http://finotax.com/itax/itax1011.htm




    _)(_Thanks_)(_

  3. #3
    Puru Thaman Array
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    Re: How is tax calculated for salary income? Is it calculated on Basic salary or total salary?

    Hi,


    :!:Kindly Check Out The Below Points:!:


    --Tax is Calculated based on your Income for the Calendar Year--

    --It is Calculated based on your Total Salary & not upon your Basic Salary--

    --Basic Salary is the Minimum Promised Amount or your Fixed Basic Pay--

    --In your Basic Pay other Allowances will not be Included--

    --Whereas Total Pay is the Gross Pay for an Employee--

    --Gross Pay is paid after deduction of Tax,other reductions & deductions--

    --Finally the Net Pay will be the Amount Credited in your Salary Account after deductions from your Gross Pay--

    --There is a Term called CTC which is offered to the Employee on Annual Basis which includes Basic Salary, Gratuity, PF, Medical Allowances, Professional Tax etc,,--



    ::-::Tax Calculation will be based on Pay Slab for the year::-::


    --0-2,50,000 it is 10% from your Salary--

    --2,50,000-5,00,000 is 20% from the Salary--

    --5,00,000 & above is 30% from the Salary--



    :!:It Varies for Female & Senior Citizens:!:




    _)(_Thanks_)(_

  4. #4
    Rohit29 Array
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    Re: How is tax calculated for salary income? Is it calculated on Basic salary or total salary?

    Respected Sir,
    The income tax is calculated only on your total salary. It means that the annual income you are getting by the company you will paid same amount as tax.
    This tax is called income tax which is used to development of our nation.
    we must have all have given tax because it is used for us.
    If you have paid the income tax then you have make one file that is called income tax return file which is very use full because in any case you have taken loan from any bank for any reason than this file is help full for you in that case.

  5. #5
    prabhu Array
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    Cool Re: How is tax calculated for salary income? Is it calculated on Basic salary or total salary?

    Hi,


    Income Tax is the mandatory thing to be paid every year

    All citizens who comes under the Tax slab have to pay this for sure

    Tax slabs for this year is in the below link clearly

    http://financeminister.in/latest-india-income-tax-slabs

    If your CTC comes under this slab , you have to pay the tax

    To avail rax exemption you can take into account following things

    Education loan repayment

    Insurance policies

    Investmnents and mutual bonds

    HRA declaration

    Submit all proofs and declare for the Tax submission at right time

    If taxc deducted early it will be refunded after proper proof verification


    Thanks


  6. #6
    bsr Array
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    Re: How is tax calculated for salary income? Is it calculated on Basic salary or total salary?

    Hi friend,
    Income tax will be paid by all the employees to exchequer of our country . It is used to develop our country. It is every citizens duty to pay income tax regularly.

    Tax is calculated as a percentage of total annual salary earn by an employee.

    Basic salary is a component of total CTC (cost to company ). Company will promise to pay that amount regularly.

    CTC is one which has many components like basic pay, HRA , bonus , lta , medical claims etc.

    Tax percentage is decided based different income tax slabs. Please see the mentioned site for tax calculation.'www.emissary.com'


    All the best !!

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