Income Tax 2018-19 – Exemptions withdrawn and allowed for Salary income during the financial year 2018-19 (Assessment Year 2019-10) – Changes for Salaried Employees and Pensioners
Common Tax Payer expects that basic income tax exemption limit be raised from Rs. 2.5 lakh and it should be linked to inflation and thereafter raised automatically every year
Income Tax Circular No. 20/2015 dated 02.12.2015 provides detailed instructions and guidelines for all provisions of income tax act which are applicable to Salaried Employees
Allowances though paid under various names, income tax stipulates conditions for including those income as Salary.
Main provision for Salaried employees is Chapter VIA of Income Tax Act provides much needed exemption for savings and expenses mainly made by Salaried employees.
Income Tax Circular 20/2015 dated 02.12.2015 stipulates exemptions for certain income that are totally exempted from income tax and need not be included in Total Income
Persons in charge of disbursement of salaries are responsible for deducting Income Tax from salaries as per the procedure envisaged in Income Tax Circuar 20/2015
CBDT issued circular No. 20/2015 dated 02.12.2015, which explains income tax calculation method for salaried employees
Income Tax Structure for Salaried Employees for the Year 2015-16- Full exemption from Income Tax is available up to Rs. 2.50 lakh. For the Income in excess of Rs. 2.50 lakh and not exceeding Rs. 5 lakh Employees will have to pay income tax at the rate of 10%. Income Tax exceeding Rs. 5 lakh will be chargeable to Income Tax at the rate of 20%
Income Tax 2013-14 for Salaried Employees (Assessment Year 2014-15) – Income Tax Department Circular 08/2013 dated 10.10.2013
Calculation of Income Tax for the year 2013-14 (Assessment year 2014-15) and Computation of income under the head Salaries
Exemption for Interest paid on Housing Loan – Computation of Income from house property