Calculation of income tax on gross or net income
surjit singh
(Querist) 16 March 2013
This query is : Resolved
My query is whether income tax is calculated on net or gross. illustration follows
A is getting a yearly salary of 4,00,000/-. He has invested in insurance of 50,000 yearly.
He pays for children school fee Rs. 50,000/- yearly.
He pay house rent of Rs.80,000/- per year.
He has paid about 25,000/- for his medical expenses in the present year.
WHAT WILL BE HIS INCOME TAX PAYABLE AMOUNT. KINDLY WITH ILLUSTRATION IN DETAIL.
advharshavardhan
(Expert) 16 March 2013
Income tax is calculated on your net income...... the structure will be as foll0ws:
Gross Salary
Less: allowances
1. Children allowance
2. House rent allowance
3. Medical allowance
Less: Deductions :
LIC
Donations ETC
Net Taxable Income ( On which tax will be charged)
Raj Kumar Makkad
(Expert) 17 March 2013
Income tax shall be calculated after the adjustment of permissible deductions as per IT Act for the relevant year.
surjit singh
(Querist) 21 August 2013
Suppose someone has invested in 50 companies in the share market. If he sells the share after one year then also whether he is suppose to show it in the income tax, or he will have to show only those share which he bought it and sold it within a period of one year.
