CA Bigyan Kumar Mishra

In order to calculate income under the head salaries, you are allowed to claim deduction from gross salary. These tax benefits are specified under section 16 of the income tax act, 1961.Tax benefits under section 16 is different from tax deductions allowed to an individual under chapter VI-A of the income tax act 1961.To calculate your taxable income and actual tax … [Read more...] about Deduction from gross salary to calculate income from salaries

Gratuity is a voluntary payment paid to employees by the employer in appreciation of services rendered in the past. Its taxable in the hands of employee under the head income from salaries. However, its exempted from income tax under section 10(10) of the IT act, 1961.As per section 10(10), in following cases any death-cum-retirement gratuity received by following person is … [Read more...] about How is tax on gratuity calculated under the head salary

Pension is a periodical payment made by the employer after the retirement or death of employees. Pension is fully taxable under the head income from salaries in the hands of all employees. However, employees of UNO and central government employees who have been awarded gallantry awards is fully exempted.It's also known as retirement pension, as periodical payments are made … [Read more...] about Is pension taxable in India – A income tax guide for pensioners

As per section 80B, Gross total income means total of all incomes computed in accordance to the provisions of income tax act 1961 before making any deduction under chapter VIA.In this article, we have shown you how to calculate gross total income (GTI) of an assessee. To know how to calculate, you are first required to know how total or taxable income is … [Read more...] about What is gross total income and how it’s calculated