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Calculate Taxable Income From Salary

Although company HR prepare tax forecasting or computation for their employees but employees face many problem during Jan to March period. How much is my taxable income, how much need to invest in tax saving instrument. How much is tax on my salary income which i need to pay.

Here is tutorial to calculate taxable income from salary. Step by step calculation......

Calculation of Taxable Income from Salary

Particular Amount

Basic 200000

HRA 100000

Special Allowance 200000

Conveyance 15000

Miscellaneous Earning 10000

Other Allowances 25000

Total Earning 550000 Gross Salary

Tax Calculation

Gross Salary


Bonus 50000

Taxable LTA 10000 60000 610000

HRA 100000

Conveyance 9600 109600 500400 Total Gross Salary

Professional Tax
0 0

500400 Net Salary
Less Invest U/S 80C

PF & VPF 25000


MF/Other S-88 50000

125000 100000 400400 Taxable Income

1 Mentioned amount of HRM in your salary slip is non taxable.
2 Rs 9600 is maximum amount non taxable under conveyance.
3 Maximum investment limit is Rs 1 Lakh

To calculate your taxable income please click here and select your assessment year, select your type assessee,  select income of individual finally enter your net income/taxable income.

Tax Saving Instruments

80C         Payment of Life Insurance Premium (For self, spouse & children)
81C         Contribution to Unit Linked Insurance Scheme - ULIP (For self, spouse & children)
80CCC Contribution to Pension Plans (Self)
80C Deposit in Public Provident Fund-PPF (For self, spouse & children)
80C Purchase of National Saving Certificates - NSC (Self)
80C Contribution to Equity Linked Savings Scheme - ELSS - TAX SAVER-MF (Self)
80C Payment of tuition fees for children to any School, College, University or Educational Institution
80C Fixed Deposit for 5 years with a Scheduled Bank (Tax Saver)
80CCF Investment in Infrastructure Bonds
80C Housing Loan - Repayment of Principal
24(2) Housing Loan - Repayment of Interest (Self Occupied)
80D Mediclaim Policy Premium (For self, spouse, children & dependent parents)
80E Payment of interest on loan taken for higher education for a full time course
80DD Medical treatment of handicapped dependent
80U Deduction in case of self being totally blind or physically handicapped

Shrusti Jain

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