Step 1:We are required tocompute the tax liabilityupon the total income, which consists of the salary arrears for the year where it is obtained. Step 2:Compute the tax liability on the total income which does not include the salary arrears for the year of receipt. The step provides us wi...
“How Income Tax is Calculated on Salary?”– Navigating the labyrinth of income tax calculation in India, particularly for salaried individuals, can be akin to solving a complex puzzle. Fear not, for it’s a crucial puzzle to unravel in the realm of personal finance. Income Tax Calculator s...
However, if your taxable income is less than ₹7 lakhs, you will get a rebate of ₹20,000 under section 87A Let us take an example to see the difference between the old and new tax regimes. Nehal works in Mumbai and gets a basic monthly salary of ₹1 lakh. Her employer offers...
Basic salary received – annual Monthly dearness allowance (if it forms part of your income) HRA / house rent allowance received – annual Total rent paid – annual Also, select ‘YES/NO’ depending on whether you reside in a metro city or non-metro city ...
In some cases, it is the unavoidable circumstances and in some cases, it is sheer laziness. Many think thatMy employer has already deducted tax on my salary income hence I don’t need to file my income tax returns! Other than being yourlegal obligationFiling of income tax returns is import...
How much tax do you pay on employment? The current tax rate for social security is 6.2% for the employer and 6.2% for the employee, or 12.4% total. The current rate for Medicare is 1.45% for the employer and 1.45% for the employee, or 2.9% total. Combined, theFICA tax rate is 15....
For example, Shyam has a salary of 7.5 lakhs and he takes a deduction of 1.25 lakhs then using both old and new tax system tax is the same. But If Shyam claims tax deductions less than 1.25 lakh say 1 lakh. Then under the old regime, the tax is Rs 44,200 and the new regime is...
ITR-3 is applicable if you having income from business and profession and salary also. Reply GAURI SHANKAR December 19, 2020 at 9:18 am How can I fill itr for enterprises business Reply SAG Infotech December 21, 2020 at 5:27 pm It depends on your income Reply Your email address ...
Freelancers typically use ITR-3 or ITR-4 for filing their income tax return, depending on their business structure and income sources. Do I need to register for GST as a freelancer? If your total turnover exceeds the threshold limit (currently INR 20 lakhs for service providers), you may ...
Let’s assume that Sameer, a resident of India, earns Rs 15 lakhs per annum. Disclaimer:For this example, we will assume that he is not taking any tax benefits from the government of India. The first 2.5 lakhs of his income are tax-free. Post that, for every 2.5 lakhs he will be ...