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.
| Item | Example Amount (in Rs.) | |
| Basic Salary, Pension, Annuity, Bonus, Dearness Allowance, Commission, Advance Salary, Arrears of Salary | 100,000 | |
| 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.
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| Tax Filing | Income from Salaries | Tax Deduction |
Comments
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Suhas said : 25/01/2012 |
Sir, which deduction will be allow on Salary income u/s 16?? |
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Yadav said : 26/01/2010 |
What about govt's contribution in New Pension Scheme ? Will it be added to employer's salary? |
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Kumar said : 07/01/2010 |
Dear sir, My wife |