How to Save and Calculate Tax

By y AtlantisAccountsTeam Year201213

TOTALINCOME
Basic Salary y HouseRentAllowance L Leave Travel T lAllowance All MedicalAllowance RetentionBonus Incentive Arrears SpecialAllowance SurpriseBonus
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Subjectto Management Approval

Sl bof Slab fIncomeTax

ForTheFinancialYear201213(1st April2012to31st March2013)

ForMale&Female Up p toRs.2,00,000/ , , / Rs.2,00,001/ toRs.5,00,000/ Rs. 5,00,001/ toRs.10,00,000/ MorethenRs.10,00,001/ NIL 10% 20% 30%

NonsubmissionofPANwillattracttaxdeduction@DoubleRate.
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HowtoSave S &C Calculate l l Tax

HouseRentAllowance(Section10(13A))
Minimum Mi i of fthe h following f ll i three h assumed damountswould ldbe b consideredfortaxexemption: TheactualamountofHRAreceived=Rs.7,000/ Rs 7 000/ 40%oftheBasicSalaryforindividualsresidinginotherthan metros( (Delhi,Mumbai,ChennaiorKolkata) ) Basic:15,000/ ,so40%of15,000/ =Rs.6,000/ Rentpaidminus10%ofBasicSalary RentReceipt:6,000/ / less l 1,500/ / (10% ( of fBasic) )=Rs.4,500/ / MusthavetoprovideCopyofRentAgreement&Original MonthlyRentReceiptwithRevenueStampaffixed
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HowtoSave S &C Calculate l l Tax

OR Housing gLoanInterest( (Section2(24)) ( ))

AspertheIncomeTaxAct,themaximumamount

eligiblefordeductionisRs1.5lakhs providedtheloan istakenbyEmployeehimselfonorafterApril1st,1999 foracquisitionorconstruction.

MusthavetosubmitaCertificateissuedbyBank.
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HowtoSave S &C Calculate l l Tax

MedicalAllowance
Medical Allowance given to an employee is tax free up to R 15,000 Rs. 15 000 / p.a. in i the h name of f Family F il member. b

OriginalSupportingBillslikesmedicinebill(genericmedicinenot ) Receipt p ofConsultancy yfees,Receipt p ofany ytestorxray y allowed), mustbesubmitted

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HowtoSave S &C Calculate l l Tax

MedicalInsurance(80D)
MedicalInsurancePremiumpaidforSELF,Spouse& DependableChildren:Rs.15000/ p.a. MedicalInsurancePremiumpaidforParents:Rs.15000/ p a forSeniorCitizensParents:Rs.20000/ p.a., Rs 20000/ p.a. pa Musthavetosubmitap photocopy pyofreceipt p ofInsurance Payment

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HowtoSave S &C Calculate l l Tax

InterestonEducationalLoan(80E)

InterestpaidonHigherEducationLoanavailedby

E l Employee :No N Li Limit it

MusthavetosubmitaprooffromBank
eCW , Atlantis Office, Accounts Department

HowtoSave&CalculateTax
InvestmentofRs.1Lacs underSection80C
1 2 3 4 5 6 7 8 9 10 11 12 13 14 AnnuityPlan forLIC ApprovedSuperannuationFund DeferredAnnuity ExpenditureonChildren Education(OnlyTution Fees) Taxsaving Fixed Depositsabove5yearsinBank HousingLoanRepayment LifeInsurance Premium MutualFund PostOfficeSaving (cumulativedeposit) PublicProvidentFund(PPF Max.Rs.1,00,000/) RecognizedProvidentFund StatutoryProvident Fund(Employees) ULIP NSCPurchase&Interest
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Musthave tosubmit acopy pyof proofs

HowtoSave S &C Calculate l l Tax

Summary
Narration(Section) HouseRentAllowance(Section10(13A)) OR Housing H i Loan L Interest I (Section (S i 2(24)) Medical Allowance MedicalInsurance(80D)ForSelf MedicalInsurance(80D)For Parents Investment(Section80C) Limit(InRs Rs.p.a.) p a ) 40%ofBasic 1 50 000/ 1,50,000/ 15,000/ 15,000/ 15,000/ 1,00,000/

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TaxCalculation
Example
Narration CTC SurpriseBonus SpecialAllowance TotalIncome Less:Employer'sPF Less:Prof Prof.Tax NetIncome Less:BasicExemption Taxable bl Income Less:Rent@40%ofBasicRs.15000/ Less:MedicalBills Less:Undersection80C NetTaxableIncome Tax@10% Amount(Rs.) 400000 35000 7500 442500 9360 2400 430740 200000 230740 72000 15000 100000 43740 4374

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Tax Calculation would be done on the basis of actual proof of investment made during the year. For any further clarification / queries, queries submission of any document you can contact to accounts department during weekdays between 4 pm to 6 pm & 10 pm to 12 pm during d i 5th to t 20th of f every month th. F illb di h month hof fJune. J Form 16will bei issued inthe

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