A salary is a set amount of cash or remuneration that a company pays employees for work done while employed.
Aside from the base income, other benefits are either fully or partially taxed. Salaried people receive Form 16, which details their earnings and taxes paid in advance. Tax-saving choices are also under various deductions, such as sec.80C-eligible investments, charitable donations, etc.
Form 16 is a document that includes all of the information you'll need to finish and file your tax return. It displays the salary income breakdown and the TDS deducted by the employer. The entire thing comprises two parts: Part A and Part B. These forms can't be downloaded from any government website, and they are provided by the employer of an employee
FORM 16Form 26AS summarizes taxes deducted and taxes paid on your behalf. This information is available on the Income-tax department website.
It indicates the amount of tax deducted on your behalf by deductors, as well as the amount of tax deposited by deductors and the amount of tax credit available to the deductee. If the tax liability of the deductee is less than the TDS amount, then the excess amount is a refund claim by the deductee.
Salary is the amount received by the employee before any amount is added or payments deducted. Basic salary excludes overtime charges, Bonuses, and other compensation received from the employer.
This is a fixed income component that serves as the foundation for the rest of your salary, hence the name. It usually accounts for a significant amount of your entire payment. The HRA is calculated as a proportion of the Basic Salary. PF is deducted at a rate of 12% of your basic salary.
Your company deducts taxes from your pay and deposits them to the government on your behalf. It's known as TDS. TDS stands for tax withheld at source. Every month, your company deducts a percentage of your wage and pays it to the government on your behalf. Your employer calculates how much TDS must be deducted from your monthly salary based on your overall salary for the year and your investments in tax-saving schemes.
Around June or July, your employer will provide you with a TDS certificate, also known as Form 16, showing you how much tax was deducted each month.
House Rent Allowance (HRA): Salaried individuals who reside in a rented home or apartment can claim HRA to reduce their taxes. This can be tax-free in part or whole. The allowance is for expenses associated with rental housing.Note that your HRA is wholly taxed if you receive HRA but do not reside in a rental unit.
| For Metro cities (Delhi, Kolkata, Mumbai, Chennai) | For other cities |
|---|---|
| Actual HRA received | Actual HRA received |
| Rent paid (-) 10% of Basic Salary + DA | Rent paid (-) 10% of Basic Salary + DA |
| 50 % of Basic Salary + DA | 40 % of Basic Salary + DA |
Special Note :-
1. In case of Individual, HUF, AOP, BOI, Artificial Juridical Person
# Old Income Tax Regime Taxable Slab
| Total Income | Tax Rate (Percentage) |
|---|---|
| Upto 2,50,000 | Nil |
| More than exceed 2,50,000 but Up to 5,00,000 | 5% |
| More than 5,00,000 but upto 10,00,000 | 20% |
| More than 10,00,000 | 30% |
Income Tax Slab for Senior citizen (Resident individual age more than 60 years but less than 80 years)
| Total Income | Tax Rate (Percentage) |
|---|---|
| Upto 3,00,000 | Nil |
| More than 3,00,000 but Up to 5,00,000 | 5% |
| More than 5,00,000 but upto 10,00,000 | 20% |
| More than 10,00,000 | 30% |
Income Tax Slab for Senior citizen (Resident individual age more than 60 years but less than 80 years)
| Total Income | Tax Rate (Percentage) |
|---|---|
| Upto 5,00,000 | Nil |
| More than 5,00,0000 but upto 10,00,000 | 20% |
| More than 10,00,000 | 30% |
Section 115 BAC: Tax on Income of Individual & HUF
| Total Income | Tax Rate |
|---|---|
| Upto 3,00,000 | Nil |
| 3,00,001 to 6,00,000 | 5% |
| 6,00,001 to 9,00,000 | 10% |
| 9,00,001 to 12,00,000 | 15% |
| 12,00,001 to 15,00,000 | 20% |
| More than 15,00,000 | 30% |
Income Tax surcharge for Individual, HUF, AOP, BOI, Artificial Juridical Person
| Total Income | Surcharge (Applicable on % of tax ) |
|---|---|
| Upto 50 Lakhs | Nil |
| More than 50 Lakh but up to 1 cr. | 10% |
| More than 1 cr. But up to 2 cr. | 15% |
| More than 2 cr. But up to 5 cr. | 25% ( If total or any part of income related to Dividend, capital gain u/s 111A & 112A, then surcharge is 15% ) |
| More than 5 cr. | 37% ( If total or any part of income related to Dividend, capital gain u/s 111A & 112A, then surcharge is 15% ) |
Special Note: All new and old tax slabs above also apply to the Assessee with salary income.
ITR 1 is filed by taxpayers whose total income is up to 50 lakhs from salaries/pensions, income from one house property, or Income from other sources.
The last date for salary ITR is 31 July, and belated ITR can be filed until 31 December.
Form no. 16 is not downloaded from any government portal, but you can receive form no. 16 from his employer.
You can verify salary ITR via Aadhar OTP at incometax.gov.in
