Income tax slab for Financial Year 2017 – 18

The below given income tax slab is applicable for financial year 2017 – 18 and assessment year 2018 – 19. Income tax slab for financial year 2017 -18 & assessment year 2018 – 19 (Amounts are in Indian rupees) For Men and Women: Rate Men Women Exemption limit Up to 2,50,000 Up to 2,50,000 5%…


Meaning of Net Salary

Net salary, also known as ‘Take home salary’ is the difference of gross salary and deductions from gross salary.  Put it simple, some amount of money is deducted every month from the salary of employees as a part of retirement benefits, taxes and statutory provisions. Salary remained after these deductions is known as net salary.…


How is income tax calculated?

Income Tax: Income tax is amount of tax levied upon income of an individual earned during a financial year. Taxable Income: Taxable income computation is first step in calculation of income tax.  Income tax is calculated on annual taxable income and deduct every month from income of an individual on average basis. Total Income is…


House Rent Allowance (HRA) – Meaning and Taxability

Meaning of House Rent Allowance (HRA): House rent allowance (HRA) is a pay component, employees receive from their employer to pay house related expenditure. Taxability of HRA: Every employee in India is entitled to claim HRA exemption if below mentioned conditions are met: He/ she lives in a rented house & Receives HRA as a…


Gross salary – Meaning and components

Meaning of Gross salary: Gross salary refers to those pay components which an employee receives in return of his/ her service. These pay components are categorized as recurring and non – recurring pay components. In other words, whatever an employee receives from his employer as part of his salary, constitutes gross salary. Recurring pay components: Those…