how would you calculate the total income under various heads in case of an individual income tax explanation
Answers
꧁ღ THIS IS YOUR ANSWER OF FOLLOWING QUESTION ꧁ღ
In order to file your income tax return (ITR), you first need to collect all the information required to file it. The next important step is to compute your total taxable income. After this, final tax payable or refundable is calculated by applying the applicable tax rates in force and then deducting taxes already paid by way of TDS/TCS or Advance tax from the tax due amount arrived at.
★★ Here's a step by step guide on how to calculate one's total taxable income ★★
* Collect your salary slips and Form 16 for the financial year. - Now add all your emoluments like (Basic salary, DA, TA, DA on TA, HRA, all other allowances, and reimbursements) which will be mentioned in your salary slips and Form 16 (Part B).
Add the Bonus (TVP- Ex gratia) received in the FY for which income is being computed•
* The total will be termed as your gross salary•
*Deduct the following from your gross salary :
Exempted portion of HRA, - Transport Allowance (maximum exemption can be upto Rs19200 per annum) - All reimbursements subject to the furnishing of actual bills i.r.o expenditure incurred (Medical reimbursement can be maximum upto Rs 15000)•
*The result will be your net income from salary.
Note: From FY 18-19, deduction in respect of transport allowance of Rs19,200 per annum and medical reimbursement of Rs 15,000 per year have been withdrawn. Further, a standard deduction of Rs 40,000 a year will be allowed from your gross salary)•