How to calculate income tax for office subordinate?

December 28, 2021

OLD REGIME

1. YEAR TOTAL AMOUT RECEIVED INCLUDE ALL ALLOWANCE(+)
2 OTHER INCOME (+)

TOTAL.............................................................................................................

EXEMPTED ALLOWANCE

1. TRAVEL ALLOWANCE (-)
2. WASHING ALLOWANE(-)
3 FOOD ALLOWANCE (-)

4 HOUSE RENT PAID (-)

Rules for HRA Claims

HRA cannot surpass 50% of the basic salary.
It is not possible to claim tax exemption on the full rental amount that is being paid. The exemption allowed will be the least of the following three options:
1- The amount received as HRA from the employer
2- Actual rent paid minus 10% of salary
3- 50% of basic salary for those living in metro cities and 40% for those living in non-metro cities
HRA tax benefits can be availed together with a home loan.
If an employee is residing with his or her parents, the individual can pay them rent, get a receipt of the payment and then make a claim of HRA. It must, however, be noted that it is not possible to claim HRA for rent paid to spouse.
It is compulsory to present the PAN card of your landlord in case the rent crosses Rs. 1 lakh during a year. If the landlord does not have a PAN card, he or she can provide a self-declaration on a paper.
Should the landlord be an NRI, then 30% tax needs to be deducted from the rent amount that is required to be declared.

5 STANDARD DEDUCTIN FOR COMMON 50000 DUDUCT (-)

6 P.TAX LOCAL AUTHORITY PAID (-)

7 HOME LOAN INTREST(-)

SAVING UNDER 80C (-)

LIC, TUESSION FEE, FIXED DEPOSIT ETC...,,

NPS (-)

MEDICAL SIDE

80D MEDICLIME

80DD DEPENDENT MAINTINANCE

Hence this includes the following disabilities:

Cognitive or severe mental disabilities
Low vision
Blindness
Leprosy-cured
Hearing impairment
Locomotor disability
Mental illness
Autism
Cerebral palsy
Or Multiple disabilities
A medical certificate is mandatory when one wishes to claim the deduction with respect to the mentioned disabilities from any Government Hospital. The document should certify the disability of the dependant and the person they are dependant on. The certificate needs to be renewed periodically.
Individuals suffering from Autism, Cerebral Palsy or any multiple disabilities, would require form number 10-IA to be filled and submitted for them.
There are also 2 formats other than the one mentioned earlier, for an individual who is suffering from any sort of severe mental illnesses and the rest of the disabilities.
Individuals also have to submit a self declaration, signed and certifying the expenses incurred pertaining to the medical treatment which includes nursing, rehabilitation as well as training of the disabled dependant.
It is not required to preserve the actual receipts for the disabled dependants expenses. But the actual receipts need to be submitted in case the claim deduction with respect of payment made to any insurer such as LIC, UTI and others for getting insurance plans or schemes for the maintenance of the disabled dependant.
The income tax deduction which is allowed, under section 80DD is Rs. 50,000 for what is defined earlier as disabled dependant (40% and over disability) This limit went upto Rs. 75,000 since 2016.
The income tax deduction which is allowed, under section 80DD is Rs. 50,000 for what is defined earlier as severely disabled dependant (80% and over disability) This limit went upto Rs. 1,25,000 since 2016.
Deduction is not dependant on the amount of expenses incurred regardless the real expenses disabled dependent relative is lesser than amount mentioned above, the tax assessed will be eligible for the full deduction.

80DDB

(1) Neurological diseases, where the disability level is certified to be of 40% and more -
Dementia
Dystonia Musculorum Deformans
Aphasia
Motor Neuron Disease
Ataxia
Chorea
Hemiballismus
Parkinson’s Disease
(2) Malignant Cancers
(3) Full Blown Acquired Immuno-Deficiency Syndrome (AIDS)
(4) Chronic Renal failure
(5) Hematological disorders
Hemophilia
Thalassaemia

80 E EDUCATION LOAN INTREST

80EE ELECTRIC BIKE CARD LOAN INTREST

80 U PERSONAL DISABLITY

NET TAXABLE INCOME

Up to Rs 2.5 lakhs	NIL
Rs. 2.5 lakh -Rs. 5Lakhs	5%
Rs 5 .00 lakh – Rs 10 lakhs	20%
> Rs 10.00 lakh	30%

Income Tax Slab	Existing Regime Slab Rates for FY 22-23 (AY 23-24)			New Regime Slab Rates for FY 22-23 (AY 23-24)
Income Tax Slab	Resident Individuals & HUF < 60 years of age & NRIs	Resident Individuals & HUF > 60 to < 80 years	Resident Individuals & HUF > 80 years	Applicable for All Individuals & HUF
Rs 0.0 – Rs 2.5 Lakhs	NIL	NIL	NIL	NIL
Rs 2.5 – Rs 3.00 Lakhs	5% (tax rebate u/s 87a is available)	NIL	NIL	5% (tax rebate u/s 87a is available)
Rs. 3.00- Rs 5.00 Lakhs	5% (tax rebate u/s 87a is available)	5% (tax rebate u/s 87a is available)	NIL	5% (tax rebate u/s 87a is available)
Rs. 5.00 – Rs 7.5 Lakhs	20%	20%	20%	10%
Rs 7.5 – Rs 10.00 Lakhs	20%	20%	20%	15%
Rs 10.00 – Rs. 12.50 Lakhs	30%	30%	30%	20%
Rs. 12.5 – Rs. 15.00 Lakhs	30%	30%	30%	25%
> Rs. 15 Lakhs	30%	30%	30%	30%