From this table, it is evident that the taxable salary has reduced on account of the standard deduction. There are several deductions you can claim from your total income to bring down the taxable income and thereby reduce the tax outgo.
Section 89 , the tax deducted in respect of salary paid to employees of the government, companies, co-operative societies, local authorities, universities, association or bodies, etc.
Marginal relief is provided in respect of salary or arrears of salary being subject to a higher rate of tax due to change in the slab rates. To get this relief, you must file Form 10E on the official income tax portal. In the absence of this form, you will not receive relief under Section The employer is required to provide Form 16 to you containing the details of salary such as the amount paid and tax deducted.
This can also be accompanied by Form 12BA , to show particulars of perquisites, and profits in lieu of salary. If the TDS is deducted by any employer other than the government — a. If the salary is credited and TDS is deducted in any month other than March- Within seven days from the end of the month in which the deduction is made. Thank you for your response. Start investing now or. Download link sent. Income Tax Raid.
How to e-file your Income Tax Return? Upload your Form Was this article helpful? Have a query? Any other income is added to the salary if you declare the same. Thereafter, depending on the slab into which your net taxable income falls, the TDS is deducted.
Gross salary would be equal to the summation of all of the above and would amount to INR 13 lakhs. For TDS computation, the net salary would be determined as follows —. So, every month, the employer would deduct tax at 6. There are different ITR forms for filing your income tax returns.
Depending on your income level and the sources of income, you should select the right ITR form. It is imperative to file your taxes in the correct ITR to avoid possible delays in tax filing.
Moreover, when you make mistakes in selecting the right form, you might incur considerable penalties in taxes which would prove to be an added financial burden. Thus, make sure that you file the correct tax return on your income every financial year. During a financial year, you might switch jobs and receive salary income from two or more employers.
In such a case, each employer would calculate and deduct the TDS based on your income and investment declaration. However, if you submit Form 12B to the new employer, the employer would calculate the TDS taking into consideration the TDS deducted by the previous employer.
Form 12B contains the details of your salary from the previous employer and the TDS deducted thereon. You can claim these deductions by declaring them so that the employer records the deductions when calculating the net taxable salary. The deductions popularly claimed by many employees are as follows —. Some of the eligible deductions under 80C are as follows —. If you invest in health insurance plans, the premiums that you pay can be claimed as a deduction under this section.
An additional deduction of INR 25, or INR 50, can be claimed if you pay premiums for the health plans of parents.
The National Pension System allows an additional deduction of up to INR 50, under this section if you invest in the scheme. If you have a savings account, interest income earned on it, up to INR 10,, would be allowed as a tax-free income. Section 89 of the Income Tax Act, allows a reduction in tax liability through marginal relief. You can claim a benefit under Section 89 if you are an employee of a company, Government, university, local authority, co-operative society, association or body, etc.
Under Section 89, if your salary or outstanding salary is being charged at a higher slab rate because the tax slab rates have changed, you can claim a marginal relief on tax. To do so, you should fill and file Form 10E on the website of the income tax department. These statements are given out in Form 16 that the employer issues after the end of the financial year but before the tax filing deadline. Form 16 might also come attached with Form 12BA if you have received any type of perquisites or profits in lieu of your salary income.
After deducting TDS from your income, the employer is also required to submit the same to the income tax department on your behalf. Moreover, there are timelines for the deposit of the TDS. These timelines are as follows —. So, if you are a salaried employee, understand what TDS is on salary, how it is deducted and when it is submitted to the income tax department. You must consider the telegraphic transfer buying rate considered by the State Bank of India on the date of TDS deduction.
Yes, you should provide the details of other income to the employer for deduction of TDS. The employer will calculate the total tax payable by you including the other income and then deduct TDS.
This way you need not worry about tax on other income. You will avoid paying interest on late payment of tax because your employer would have already deducted TDS. The TDS return needs to be filed every quarter. So, firstly ensure that the employer has filed the TDS return. You must immediately reach out to the concerned person in your organization and resolve the conflict. Form If the TDS is not deducted on salary then you will have to pay tax on salary income.
A taxpayer is liable to pay an advance tax if the total tax exceeds Rs 10, in a financial year. Hence you might need to pay an advance tax if the total tax exceeds Rs 10, Now a delay in payment or non-payment of advance also attracts interest and penalty.
Hence, you must ensure that TDS is deducted by your employer or you pay tax regularly. Yes, it is compulsory to deduct TDS every month at the average tax rate. However, if the income of the employee is below the basic exemption limit then TDS is not applicable. However, pension income received from United Nations Organizations is exempt from tax. Yes, these reimbursements are in the nature of perquisites and taxable income as salary income.
The valuation of such perquisites must be done as per the rules prescribed by the Income Tax Act. If no TDS has been deducted then your employer might not provide Form Instead, your employer might issue a salary certificate or statement to help you file the income tax return.
No, family pension income is not taxable as salary income. However, family pension is taxable under the head Income From Other Sources. For a government employee, both gratuity and PF benefits are exempt from tax. However, for a non-government employee gratuity is exempt subject to a few conditions. While PF is exempt if it is received from a recognized PF after rendering continuous service of a minimum of 5 years. Last updated November 11, Our weekly newsletter with finance tips and investment insights from our experts.
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