Friends, The Details of Salary paid to Salaried Employee and any other income collect and tax dedcuted from the Gross salary or Income how to calculate under the head of Income chargeable under the head 'salaries'.
1. Gross Salary.
2. Less: Allowance u/s. 10 Exempt.
3. Less: Deductions Alloable.
4. Add : Any other income reported by the employee
5. Gross Total Income
6. Less: If Employee/Tax Payee Borrowed the House Loan and Paid Interest on their.
7. Add : Income from House Property
8. Add : Profit or Gains of Business and Profession
9. Add : Income from Capital Gains
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Besides the above incomes, sometimes income of other persons is included in the assessee's Total Income due to clubbing provisions enumerated under section 60 to 64.
Since Income-Tax is a composite tax on Total Income of a person earned during a period of one previous year, it may so happen that the net result from a particular source/head may be a loss. This loss can be set off against other source/head as per the provisions for sett off or carry forward and set off of losses contained in sections 70 to 80 of the Income-Tax Act.
The aggregate of income computed under each head, after giving effect to the provisions for clubbing of incomes and set off of losses, is known as "Gross Total Income ". In computing the total income of an assessee, certain deductions are permissible under section 80C to 80U from Gross Total Income. These deductions are however not allowed from the following incomes although these incomes are part of Gross Total Income:
1. Gross Salary.
2. Less: Allowance u/s. 10 Exempt.
3. Less: Deductions Alloable.
4. Add : Any other income reported by the employee
5. Gross Total Income
6. Less: If Employee/Tax Payee Borrowed the House Loan and Paid Interest on their.
7. Add : Income from House Property
8. Add : Profit or Gains of Business and Profession
9. Add : Income from Capital Gains
Know about updated income Tax slab for Assessment year 2012-13 (Click Here)
Besides the above incomes, sometimes income of other persons is included in the assessee's Total Income due to clubbing provisions enumerated under section 60 to 64.
Since Income-Tax is a composite tax on Total Income of a person earned during a period of one previous year, it may so happen that the net result from a particular source/head may be a loss. This loss can be set off against other source/head as per the provisions for sett off or carry forward and set off of losses contained in sections 70 to 80 of the Income-Tax Act.
The aggregate of income computed under each head, after giving effect to the provisions for clubbing of incomes and set off of losses, is known as "Gross Total Income ". In computing the total income of an assessee, certain deductions are permissible under section 80C to 80U from Gross Total Income. These deductions are however not allowed from the following incomes although these incomes are part of Gross Total Income:
- Long-Term Capital Gains.
- Short-Term Capital Gain on transfer of equity shares and units of equity oriented fund on or after 01-10-2004 through a recognised stock exchange i.e. short-term capital gain covered under section 111A.
- Winnings of lotteries, races, etc.
- Incomes referred to in sections 115A,115AB,115AC, 115AD, 115BBA AND 115D.
After Calculating the Above:
1. Less: All Deduction under Chapter-VIA. Know more (Click Here)
These deductions are of two types:
1. Less: All Deduction under Chapter-VIA. Know more (Click Here)
These deductions are of two types:
- deductions on account of certain payments and investments covered under section 80C to 80GGC.
- Deductions on account of certain incomes which are already included under Gross total Income covered under sections 80IA to 80U.
The income arrived at, after claiming the above deductions from Gross Total Income, is known as Total Income. It may also be called Taxable Income. The Total Income thus calculated, should be rounded off to the nearest of Rs. 10/-.
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