Friday, 7 September 2012

Detailed Explaination of Income Tax Calculation Sheet


As per the income tax form for the 2012-13 fiscal the following factors will be taken into consideration while deciding the gross salary of a taxable employee:
Basic
Special allowance
HRA
City compensatory allowance
Exemption of HRA under Section 10/13A
Referral allowance
Transport allowance
Arrears of the previous year/s
Exemption of transport allowance under Section 10/14

The areas mentioned below are the "other payments" and liable to be subjected to taxes: 
AIP/SIP/PIP/V.Pay
Notice pay recovery or reimbursement
Referral claim
Tour
Taxable reimbursement
LTA
Leave encashment
The following are regarded as "prerequisites" or "others" in the 2012-13 income tax form: 
Company leased accommodation
Payment for sweeper, watchman, and gardener
Less paid by the employee
Car perks
Medical reimbursement
Hard furnishing
Interest free loans
Normally the tax on these categories is deducted while calculating the salary. 

The following factors are also considered while paying the salaries of taxable employees:
Loans from housing property
Interest of housing loan

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