A.Income 1200000, what would be the Income tax and please suggest how much the person can save @ max.?



Components of salary Eligibility Declaration
(Declarations should be made for the entire year) Rs. Rs.

Basic 480,000 480,000
House Rent Allowance 192,000 192,000
Employer Contribution to Provident Fund 57,600 57,600
Medical Allowance 15,000 15,000
Leave Travel Allowance 40,000 40,000
Food coupons 13,200 13,200
Transport Allowance
Reimbursements:
Fuel
Mobile
Personal pay (residual) 402,200 402,200
Gross Salary 1,200,000 1,200,000
My Bad i forgot to add these information. I am salaried, male, Indian Rupees, not a senior citizen, citi is delhi, for financial year 2008-2009…please let me know if anything is missing

A.Income 1200000, what would be the Income tax and please suggest how much the person can save @ max.?
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6 Replies to “A.Income 1200000, what would be the Income tax and please suggest how much the person can save @ max.?”

  1. Your question mehtodology suggests that you not a salaried person at all.

    For which year you are talking about?
    You are male or female?
    Your city?
    Senior Citizen?
    1200000 is Indian Rupees or US Dollers or UK Pound or Euro?

    Assuming that you are earning a handome income then you must have put your question giving all information enabling any one to guide you properly as far as Invome Tax and Saving is concerned.


  2. You can invest up to Rs. 1 lac. Read about Investments based Deductions from the Income: Section 80C, 80CCC, 80CCD, 80CCE http://mytaxes.in/index.php?topic=24.0

    Get Medical insurance for your self and parents. Medical based Deductions from the Income: Sections 80D, 80DD, 80DDB, 80U http://mytaxes.in/index.php?topic=27.0

    Buy a property to get home loan deduction. For home loan interest and capital deduction, read http://mytaxes.in/index.php?topic=9.0.

    Alos read about allowances. For salary breakup to get maximum deductions, read:Income From Salary http://mytaxes.in/index.php?topic=17.0


  3. Income tax is deducted on taxable income which will be calculated after deducting exemptions from the gross salary.

    In your case you can claim exemptions for HRA, PF Contribution, Medical, LTA, Food Coupons.

    While calculating your taxable income, take a note of the following:

    HRA: You can claim exemption for it only if you stay in a rented house and you can produce House rent bill from the landlord. Tax will be exempted on the actual rent paid as per the bill OR your total HRA whichever is lesser.

    MedicalAllowance: Exemption can be claimed only if you produce medical bills.

    LTA: You can claim it once in 2 years only. For claiming this you have to take a planned leave from your company and produce bills for Hotel/Travel expenses During this leave period.

    Investments/PF: You can claim exemption under 80 C of upto 1 lakh for investments to insurace policies, 3 years tax saver mutual funds, ULIPS, 5 year tax saving fixed deposits, provident fund. Since your PF is 57,600 , you have only 42400 to invest for tax benefit purpose.

    Sodexo: Full 13,200 exempted without any condition.

    Calculate your taxable income after deducting all the exemptions I explained above and then use the following link to calculate your tax for the year:

    http://www.taxmann.net/DirectTaxLawsPages/TaxCompute/Xtras/TaxCal.aspx?pId=1010



  4. With details provided and with “0” investments, your tax for this FY – considering that the whole of 12,00,000 is given in this FY will be 2,56,602.

    I suggest that you use a tax calculator for this – one is available for download at http://www.freewebs.com/rajanpras/itcalcfy2009.htm

    There are lots of saving instruments – check the “Investments” section for details and the “Charts” section for the limit of tax benefits – you should consult a financial consultant for the correct investment; i.e. if ypu decide on life insurance, there are not less than 15 to 20 firms offering various flavours of this, for which you need a one-to-one discussion with an investment advisor.


  5. Your tax should be 134415/- with a home loan intt and priciple amount payment.

    1200000-100000-150000=950000-15000=935000.

    any confusion let me know

    Mr. Tulsi Gupta
    91-9868119697
    For Samarpan Consultancy Services





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