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Income Tax Caculation: India

Discussion in 'General Chat' started by asprin, Oct 14, 2018 at 5:49 AM.

  1. asprin Staff Member

    asprin
    Sportsbookie Lannisters India
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    noobards
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    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?
     
    Till Valhalla said thanks for this.
  2. PresidentEvil User Title Purchaser

    PresidentEvil
    RCB... The Amigos YJKW . PlanetCricket Award Winner India
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    Well, deduction on self owned/let out property, motor car expenses for personal use and other deductions related to your profession.
     
  3. asprin Staff Member

    asprin
    Sportsbookie Lannisters India
    AKA:
    noobards
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    Sep 3, 2012
    National Team:
    Location:
    Hyderabad, India
    Meaning? Consider that I do not have a self owned/left out property, motor car etc.
     
  4. Akshay. International Cricketer

    Akshay.
    Sons of Pitches Mumbai Indians India
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  5. asprin Staff Member

    asprin
    Sportsbookie Lannisters India
    AKA:
    noobards
    Joined:
    Sep 3, 2012
    National Team:
    Location:
    Hyderabad, India
  6. Akshay. International Cricketer

    Akshay.
    Sons of Pitches Mumbai Indians India
    Joined:
    Mar 28, 2016
    National Team:
    Domestic Team:
    Mumbai Indians
    Location:
    Pune, India
    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
     
    asprin said thanks for this.
  7. Rebel2k18 Administrator

    Rebel2k18
    Lannisters CSK India
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    Jan 3, 2010
    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.
     
    asprin said thanks for this.
  8. PresidentEvil User Title Purchaser

    PresidentEvil
    RCB... The Amigos YJKW . PlanetCricket Award Winner India
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    National Team:
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    Royal Challengers Bangalore
    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.
     
    asprin said thanks for this.
  9. asprin Staff Member

    asprin
    Sportsbookie Lannisters India
    AKA:
    noobards
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    Perfect. This is what I was looking for.
    Yes, I'm vaguely aware of those. High time I make use of those.
     
    Akshay. said thanks for this.
  10. Rebel2k18 Administrator

    Rebel2k18
    Lannisters CSK India
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    Jan 3, 2010
    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.
     

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