calculation

[Rajeev Khulbe]

gud afternoon to all experts,

                                                           sir i have a query abt. income tax calculation. my brother salary is 20 thousand. this is salary structure of my brother salary.

basic salary -                     12822

hra (40 % salary)-              5128

transport allowance           800

madical remburisement   1250

tottal salary                           20000

this is salary detail from april '11 to sep'11 

but sir suddenly my brother salary increased 2000 ( 20000+2000=22000) from october'11

 

salary structure

basic salary -                    14251

hra (40 % salary)-              5699

transport allowance           800

madical remburisement   1250

tottal salary                           20000

 

than plz tell me that how i will calculate tax from oct'11 to march'12 and sir what will be my total tax liablity in f.y '11-12. plz reply this is very  urgent for me. my email id is [email protected]

[Guest]

Dear Mr Rajeev

 

Calculate the Salary for the year i.e. Basic Salary 12822 x 6, 14251 x 6 = 162438, likewise for HRA, if your brother is paying the rent then calculate accordingly, Transport Allowance is not taxable upto Rs. 9600/- p.a. same with Medical Reimbursement is non taxable if the bills are submitted upto Rs. 15,000/- p.a.

Thanks & Regards

Saji

AI Summary

Taxable salary calculation: prorate basic and allowances for each period; HRA tied to rent, some allowances may be exempt. Prorate salary components across periods before and after a mid-year increase (e.g., multiply each basic salary by months at that rate) and annualise HRA and allowances. HRA taxability depends on rent paid and must be calculated for each period. Transport allowance enjoys a non-taxable ceiling per annum; medical reimbursement is non-taxable if supported by bills and within the annual exempt limit. Aggregate the annualised taxable components after applying these exemptions to determine total taxable salary for the year.