for salaried Individuals
Taxation
What is TDS ?
TDS stands for Tax Deduction at source. As per Income Tax Law, persons responsible for making payments are required to deduct tax at the time of making payment at rates prescribed in the Act.
What's the rate of TDS for Salaried Individual ?
* here the income means taxable income
₹0 - ₹250000
₹2,50,001 - ₹5,00,000
₹5,00,001 - ₹10,00,000
< ₹10,00,000
0%
0%
12,500 + 20% of total income
1,12,500 + 30% of total income
Education Cess @ 4% additional on the Income Tax
What is my Income ?
In Hand
or
CTC
Its none of the them
In Hand
or
CTC
What is my Income ?
What is my Income ?
Its Taxable Income
It is computed based on your CTC, after considering certain exemptions.
Few Popular Exemptions
House Rent Allowance
Minimum of :
1. Actual HRA
2. Rent Paid ( – ) 10% of Basic
3. 40% of Basic (Non-Metros) or 50% of Basic (Metros)
Few Popular Exemptions
Minimum of –
1. Actual HRA -> 4,800/-
2. Rent Paid ( – ) 10% of Basic -> 7,200 - 1200 -> 6,000
3. 40% of Basic -> 4,800/-
| Particulars | Monthly | Annual |
|---|---|---|
| Basic | 1,000 | 12,000 |
| HRA | 400 | 4,800 |
| Actual Rent Paid | 600 | 7,200 |
House Rent Allowance
Standard Deduction
Few Popular Exemptions
No tax on receipt of dividend income up to ₹10,00,000/- in a year
Rs. 50,000/- to all salaried employees
Dividend Income
Different Investment Options u/s. 80 C & CCD upto ₹2 L
Few Popular Exemptions
- PPF (Public Provident Fund)
- EPF (Employees’ Provident Fund)
- Five year Bank or Post office Deposits
- National Savings Certificates
- Equity Linked Saving Schemes
- Tuition Fees
- Principal repayment of Home Loan
- National Pension Scheme
- Life Insurance Premium
- Pension Schemes
Few Popular Deduction
- Health insurance premium up to Rs 25,000 for self, spouse and dependent children.
- Health insurance premium upto Rs 30,000 for parents.
- Deduction is allowed for interest on loans taken for pursuing higher education. No maximum limit.
- Deduction of upto ₹10,000 can be claimed against interest income from a savings bank account.
Few Popular Deduction
Under Section 80 G
It allows deduction for donations towards various Social Causes. Deductions are eligible for either 100% or 50% with or without restriction as provided in Sec. 80G. Deduction is available in case donation is done in form of cash for amount over ₹2,000.
| Salary ( CTC ) | Taxable Income | Tax | Note |
|---|---|---|---|
| 3,50,000 | 0 | 0 | |
| 6,00,000 | 5,00,000 |
0 | Saving of approx. 17k. pa. Declared Rent of 8k pm |
| 12,50,000 | 8,45,000 | 33,800 |
Saving of approx. 86k pa. Declaration of Rent of 20k pm and Investement of 1.3L |
Tax calculation samples?
Important Dates
- File your Income Tax Declaration with GeekyAnts
- In April of every year
- At the time of joining
- Give your Income Tax Declaration proof with GeekyAnts
- In March
- File your Annual Tax Return with Govt Department
- Between May to July of the next F.y.
How to declare savings in GeekyAnts
https://portal.geekyants.com/user/it-saving
How to File Income Tax Return?
https://www.incometaxindiaefiling.gov.in/
https://cleartax.in/
Find a CA / We will arrange a CA desk in our office.
Thank You
For any query, please reach out to the tax guys
Apoorva
Ashna
Copy of Employee Taxation Deck for 2019_v3
By Probin Johori
Copy of Employee Taxation Deck for 2019_v3
Income Tax Savings for Salaried Employees in India
