Any financial wizards out here? This is one topic which has always puzzled me to no end. No matter how hard I try to understand it, I always do not seem to grasp the concept. I'm currently considering an offer and would like to know if it would be beneficial to me. The only thing I need to figure out right now is how much will I end up paying in taxes. Hypothetically speaking, let's say my annual income is Rs.15 lacs per annum. The only thing I show under deductions/savings is Rs.50,000 towards PF. No HRA exemption, no medical insurance premium (paid by the employer), nothing else. In this case, what would be the approx amount of tax to be paid?
Well, deduction on self owned/let out property, motor car expenses for personal use and other deductions related to your profession.
Calculate your income tax here https://www.incometaxindia.gov.in/pages/tools/income-tax-calculator.aspx As per information provided, your liability comes to 257400
Your taxable income is 1450000 First 2.5 lakhs is exempt Next 2.5 taxed at 5%= 12500 Next 5 taxed at 20%= 100000 Next 4.5 taxed at 30%= 135000 Total tax 247500 Add cess 4%= 9900 Total 257400 There are basically slabs
This is correct if you just want to know your tax liability. However if you wish to save tax then there are numerous deductions via which you can do so.
Taxation on property self owned/let out: since you don't own a property or you haven't let out any, or dont own a car, there is no taxation for that. You will have to calculate your total income from business or profession. And as Akshay said, taxation depends on how much income you have declared in your statement to Income tax. While deductions on bank account balances/excess transaction over limit is already deducted according to your PAN details. You will have to pay tax on remaining income that you have earned over a year according to general taxation slabs.
Perfect. This is what I was looking for. Yes, I'm vaguely aware of those. High time I make use of those.
Those are very useful and you should definitely use those. You can PM me if you want and I can tell you some options depending on your income, loans and assets if any.
