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How to save tax …

586 comments and 142,987 views

Posted in Finance, Income Tax.

Comment posted on Income Tax Calculator for 2011-2012 by raj.

how to save tax

Related posts:

  1. Income tax calculator for India
  2. Income Tax Calculator for 2010-11

By Pankaj Batra – June 19, 2013

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  1. Prashant says

    Hi Pankaj,

    i have got form 16 and tax has been deducted let me know which return file should i fill as i am professional wrkning in MNC.
    Like Sugam return/ITR2/ITR4.
    As i dont have house loan

    July 18, 2012, 2:21 pm Reply
    • Pankaj Batra says

      @Prashant
      If you only have income from salaries and bank interests, then you can file income tax return using form ITR1 (Sahaj).

      July 18, 2012, 2:23 pm Reply
  2. ANIL KUMAR SINGH says

    very good income tax calculation formula

    August 14, 2012, 9:12 pm Reply
  3. Sai says

    Hi Pankaj,
    I have a question on TDS. When a company is deducting via TDS will it be deducting on the basis of gross income or on basic pay excluding allowances?
    Below is waht i see on my payslips during last financial year:
    FY-2011 to 2012:
    Apr 25000 2500
    May 62099 7625 [increment and sign on bonus on pro-rated basis]
    Jun 75000 8572 [sign on bonus pro-rated basis]
    July 50000 3422
    Aug 50000 3422
    Sep 50000 3422
    Oct 50000 3422
    Nov 50000 3422
    Dec 50000 3423
    Jan 50000 3422
    Feb 50000 3423
    Mar 50000 3422
    Total 612099 49497
    The deducted amount does not go with what i see from SLAB2 tax details.
    Below is my salary break up monthly:
    Pay Component Monthly (INR)
    Basic 17500
    House Rent Allowances 7000
    Conveyance 800
    Special Allowances 18433
    PF 2100
    Medical 1250
    LTA 2917
    Total 50000

    If my company did not deduct tax amt appropriately do i have to explicitly pay the taxes?What will be the interest rates if i have to pay as of today?

    I even need to file my returns yet. I think i missed the date as well. What would be the penality on late returns?

    September 16, 2012, 12:20 am Reply
    • Pankaj Batra says

      @Sai
      Company deduct TDS on basis of your overall tax liability.
      They consider income for 12 months and computes taxes after deducting necessary deduction (as per declaration and proofs provided by employee). The pending amount for year is divided into equal portion for remaining months and deducted from salary as TDS.

      In case of extra bonus and one time payments, tax is deducted on amount in that month only as per slab rate.

      You can compute income tax using income tax calculator provided here by providing monthly salary figures. If total amount payable is more than total paid, you would need to pay that before filing income tax return.

      If pending amount is less than 10,000 you won’t need to pay any penalty for late payment.

      September 16, 2012, 6:10 pm Reply
  4. Sai says

    Thanks Pankaj. The tax calc is really useful. Looks like i am yet to pay few thousands to IT dept yet after TDS payments to IT dept.

    I have few questions on income tax returns as well.
    1. Correct me if i am wrong. We file the returns for the gross earnings and savings of the previous financial year in the current financial year?
    2. I have joined as a consultant in my company on Jun’2010 and became a permanent employee on May’2011. At this time(Jun’2010-Apr’2011) my annual gross income is Rs. 3,00,000/-. I haven’t filed IT returns during the FY-2011-2012. Can i file it now? What could be the penality?
    3. I need to files IT returns this FY-2012-2013. I see due date as Aug’2012. What could be the penality for this?

    I want to know whether apart from the employer can i get Form16A from any other sources?

    Thanks in advance.

    September 16, 2012, 9:24 pm Reply
    • Pankaj Batra says

      @Sai
      1. Yes, you need to file income tax returns for earnings in FY 2011-12 in next FY year (2012-13). So for FY 2011-12, Assessment year (AY) is 2012-13.
      2. In case you were consultant in FY 2010-11, your income may not be from salary, but from profession. You may have to file ITR4 for that year. Yes, you can file returns for that year even now. If there is taxes payable, penalty may be payable for that. IT department may also ask Rs 5000 for late filing.
      3. Due date for FY 2011-12 or AY 2012-13 was 31st Aug, 2012. But you can still file it before 31st March 2013 without any late filing penalty.

      You can only get Form-16 from employer in case you are on their payrolls and they have deducted taxes (as TDS) from your salaries.
      Form-16A is issued where payments are done for other than salaries like bank interest, payment to consultants etc.

      You can also see tax deposits on your behalf on your PAN in Form 26AS(https://incometaxindiaefiling.gov.in/portal/form26ASInfo.do)

      September 16, 2012, 9:41 pm Reply
  5. P K Haridas says

    I get Rs.15,000/- as HRA alongwith salary and I pay Rs.5000/- House Rent to Land Lord. On how much amount I will get tax exemption.

    February 28, 2013, 3:46 pm Reply
    • Pankaj Batra says

      @P K Haridas
      HRA exemption would also depend on basic salary and city of residence.
      Income tax exemption for HRA will be least of following:
      1. The actual amount of HRA received as a part of salary.
      2. 40% (if living in non-metro area) or 50% (if living in metro area) of (basic salary+Dearness allowance (DA)).
      3. Rent paid minus 10% of (basic salary+DA).

      March 1, 2013, 1:42 am Reply

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