The Income Tax Return (ITR) deadline for AY 2022-23 or FY 2021-22 is July 31 for salaried staff whose accounts don’t must be audited. As only some days are left, specialists recommend that taxpayers ought to file their ITR as quickly as doable earlier than the due date.
There are a number of parts of the CTC of salaried staff which might be required for tax calculation.
“First, we need to calculate the Gross Salary from the monthly salary and then we need to deduct exempt allowances (HRA, LTA, etc), Standard deduction (Rs. 50,000) and professional tax (if any) to arrive at a net salary. Thereafter, if there is any other income that can be added to net salary ( like FD interest, lottery income, etc) to arrive at Gross Total Income. After calculating Gross Total Income, we need to deduct Chapter VI-A deductions( Deduction u/s 80C, Deduction u/s 80D, etc) to arrive at taxable income,” Abhishek Soni, CEO and Co-Founder of tax submitting platform Tax2win instructed FE PF Desk.
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Various investments and bills by salaried staff additionally qualify as deductions on which tax advantages apply. Here’s an inventory of such deductions below Section 80C of the Income Tax Act for salaried staff:
1. Under Section 80C, complete deduction of Rs 1.5 lakh is out there in the direction of funds made to –
- Provident Fund
- Life Insurance Premium
- Subscription to sure fairness shares
- Tuition Fees
- National Savings Certificate,
- Housing Loan Principal
- Other varied gadgets
2. Under Section 80CCC: Annuity plan of LIC or different insurers in the direction of Pension Scheme
3. Under Section 80CCD(1): Pension Scheme of Central Government
4. Upto Rs 50,000 extra deduction Under 80CCD(1B) for funds made to the Pension Scheme of the Central Government like NPS, excluding the deduction claimed below 80CCD (1).
Source: www.financialexpress.com”