How can I calculate my Salary Income? - iTrust http://www.itrust.in/content/tax-planning/How-can-I-calculate-my-Salary-...

Home
Financial Planning
Investment Planning
Tax
Real Estate
Home Loan
Life Insurance
Health Insurance
Mutual Funds
Personal Loans
Fixed Deposits
NRI

You are here: Home >> Tax Planning Home >> Tax Planning Guides

Tax Planning Guides

How Can I Save Taxes this Year
Misconceptions about Taxes
What is Tax Planning
Calculate Tax Liability 2010-11
Calculate Tax Liability 2009-10

1 of 5 12/11/2010 6:36 PM
How can I calculate my Salary Income? - iTrust http://www.itrust.in/content/tax-planning/How-can-I-calculate-my-Salary-...

Tax Calculator
Calculate your tax liability

Related Content

10 Tax Filing Tips To Avoid Tax Problems

Tax documents and forms you must know about
Online or offline - which tax filing process should you follow
Tax Tips on Capital Gains
What Is My TDS Status?

Related Forum Content

What is the maximum limit for income tax exemption in mediclaim policy investment?
Will get any deduction under income tax for education loan?
How can I file my income tax return online?
Please let me know how much income tax I have to pay in this financial year
How should I save income tax on my salary?

2 of 5 12/11/2010 6:36 PM
How can I calculate my Salary Income? - iTrust http://www.itrust.in/content/tax-planning/How-can-I-calculate-my-Salary-...

Will the proposed FBT change reduce your take home pay?

Join The Discussion Now

Visit Tax Planning Forum and get expert advice on income tax calculations, slabs and rules.

3 of 5 12/11/2010 6:36 PM
How can I calculate my Salary Income? - iTrust http://www.itrust.in/content/tax-planning/How-can-I-calculate-my-Salary-...

How can I calculate my Salary Income?

These calculations are best left to your internal human resource or accounts department. Nevertheless, here is
a quick table that can guide you to getting an understanding of how to calculate your salary income. But some
of you might find the terms and words used a little technical, so don’t say we didn’t warn you….for
simplification purposes, we have used round numbers for the table.

Example Amount (in

Item
Rs.)

Basic Salary, Pension, Annuity, Bonus, Dearness Allowance, Commission, Advance Salary, Arrears of
100,000
Salary

Add Gratuity Leave Encashment, Commuted Pension, 10,000

Add Perquisites and Profits in addition to or in lieu of Salary 5,000

Add Employer’s contribution to recognized Provident Fund in excess of 12% of salary 300

Gross Salary 115,800

Less Deduction for Entertainment Allowance -5,000

Less Deduction for Employment Tax -1,000

Salary Income 109,800

Please recognize that not all these line items might be applicable to you, the above is just an illustrative
example to demonstrate how one can calculate one’s Salary Income.

If you liked this article, you might also want to read:

Tax Treatment of Provident Fund

What are the different incomes taxed under the head "Salaries"?

Tax Filing Income from Salaries Tax Deduction

Comments

Yadav said : What about govt's contribution in New Pension Scheme ? Will it be added to employer's
26/01/2010 salary?

4 of 5 12/11/2010 6:36 PM
How can I calculate my Salary Income? - iTrust http://www.itrust.in/content/tax-planning/How-can-I-calculate-my-Salary-...

Kumar said
: Dear sir, My wife
07/01/2010

iTrust uses VeriSign SSL for

secure e-commerce and
confidential communications.

About Us | Why is iTrust different | Services | Team | Careers | iTrust in the Media | Partners
Contact Us | Sitemap | Disclaimer | Privacy Policy | Complaint Redressal | Newsletters Archive | Hot Topics
Archive | Real Estate Archive | Chats Archive | Customer Testimonials | Videos Archive | Financial Planning
| Income Tax | Real Estate | Home Loan | Life Insurance | Health Insurance | Mutual Funds | Personal Loans
| Fixed Deposits | NRI

© 2007 iTrust Financial Advisors Pvt. Ltd. All Rights Reserved. [Best viewed under 1024 X 768 +
resolution.]

5 of 5 12/11/2010 6:36 PM