Hw do I calculate my taxable income for the year 2007-08? I am a female on consultant mode?
Answers: http://www.laws4india.com/calculator-i.a...
This will give U the excell sheet for tax calculation just click on the link for 2007-08 assessment year and fill on the required fields.
Assuming that your salary has the following components:
>Basic
>Conveyance
>HRA
>LTA
>Medical
>Special allowances
On this tax exemption will be given for LTA and Medical to the tune to which you have submitted the bills as per your company norms. LTA can be claimed twice in a block of 4 years. Presently the block is 2002-2005.
For tax exemption on HRA:
Download HRA calculator from following link
http://simpletaxindia.G00GLEpages.com/HR...
Transport allowance is not taxed.
Apart from this your investments under 80 C to the tune of 1 lakh (including your contribution to EPF) will be non taxable.
The following investments are valid under 80C:
>>Premium Paid towards Pension Plan
>>Total LIC premium paid
>>Unit Linked Insurance Plan (ULIP)
>>National Savings Certificate (New Purchases)
>>Interest Accrued on NSC (Previous Investments)
>>Public Provident Fund (PPF)
>>Equity Linked Savings Scheme (ELSS)
>>Principle repayment of Housing Loan
>>Mutual Fund Bonds
>>Tuitions fees (Maximum 2 children)
>>Infrastructure Bonds
Other investments for which you that can get tax exemption over and above the ones mentioned above are:
>>Sec 80D Premium in respect of Medical Insurance (10000/- ; 15000/- if covered Sr.Citizen)
>>Sec 80DD; Medical treatment of handicapped dependents. Certificate from a doctor working in Government Hospital required Declaration by employee of amount incurred during the year (Maximum limit is 50,000 (In case of severe disability maximum limit is 75,000)
>>Sec 80DDB (Medical treatment for specified ailments) Doctor (not less an MD) certificate in Form 101 Declaration by employee of amount incurred during the year (40000 or 60000 for Senior Citizen)
>>Sec 80E Interest paid on loan availed for higher education Certificate from Financial Institution ( Only Interest part will be given as deduction and not Principal amount) There is no limit for this
>>Sec 80U (Physically handicapped or totally blind employee) Certificate from a doctor working in Government Hospital required(Maximum limit is 50,000; In case of severe disability maximum limit is 75,000)
>>Interest on Housing Loan; Form 12 C & Annexure to Form 12C are required to be filled for claim
For women, income of 1,35,000 is non taxable.
The tax slabs are:
>> Rs 135,001 - 150,000 : 10%
>>Rs 150,001 - 250,000 : 20%
>> Above Rs 250,000 : 30%
>>Taxable income more than Rs 10,00,000 : Surcharge 10%
A simple tax calculator is:
http://www.computeincometax.com/
If you want to calculate your income between 1-4-2007 to 31-3-2008, then go through my answer. For your information the tax free income for women was Rs.1.35 lakhs for last year and now for this year it is Rs.1.45 lakhs.
As a Female, for the Financial Year 2007-08 (Assessment year 2008-09), your tax free income is Rs.1,45,000. After that you have to pay tax as per slab rates.
You can invest up to 1 lakh in tax deduction investments U/s 80C. If you invest in 80C investments, then your tax liability will be reduced to a great extent depending on your tax slabs.
What are the investments u/s 80C ?? (click on below web link)
http://www.rediff.com/getahead/2005/dec/...
Now Calculation of tax.
Your salary is 5 lakhs
You have invested 2 lakhs in 80C investments.
5,00,000 is your net income
1,00,000 less Max. deduction allowed u/s 80C per year.
------------
4,00,000 is the taxable income:
=======
00,000 is the tax (a) 0% between 0 to 1.45 lakhs
00,500 is the tax (a)10% between 1.45 to 1.5 lakhs (on 5000)
20,000 is the tax (a)20% between 1.5 to 2.5 lakhs (on 1 Lakh)
45,000 is the tax (a)30% after 2.5 lakhs (on 1.5 lakhs)
----------
65,500 is the total tax
01,965 is the education cess (a)3% on the tax Rs.65500
----------
67,465 Net Tax payable.
======
If you do not invest 1 lakh in 80C investments, then your income will become 5 lakhs and you need to pay 30,000 more as tax.
Tax Preparers...What Program Do You Use Or Like?
we use taxwise at my site, and it seems that any idiot can use it, hooray for me! What do you use??Answers: I also use taxwise - works fine as long as you know where on earth to put things.
This was the first year we prepared our own taxes, and we used TurboTax. We loved it, it be so simple and took you step by step. It was a bit of a long process, but we really like it and felt confident when we be done that it was correct.
Although I wouldn't recommend it if you hold a ton of stuff to write off and special circumstances. Our taxes be very simple. Yay for us! Double yay for you! lol
What happen if you don't do your taxes?
I haven't done mine in the concluding 3 yearsAnswers: If you owe taxes, CRA will hit you with a 5% cost, plus prescribed interest (which compounds) on the tax due until it is remunerated. That can quickly make a payment up to unmanageable amounts.
You can also be charged with let-down to report, which will take you to court at a minimum, to lock up if you're unlucky (and/or it's excessive).
But if they owe YOU money, then in that really is no penalty. They will eventually come after you looking for the returns, so for god's sake hold the records stored without risk to prove you owed nothing. When you do folder, you'll even still get your refund.
I once filed for 10 years worth of taxes, and get refunds for respectively year, plus they even added (a minuscule rate) of interest, although I seem to muse over they have kill that part of the system presently, accruing interest singular after the return is filed.
In the U.S. it is a crime not to record a tax return if one is needed. There are a few (very few) situations within which a tax return does not call for to be filed, but otherwise it is a official requirement. With enough apologies and excuses and expenditure of penalties and interest, you may be capable of file for historic years without mortal prosecuted and getting put in the slammer. Get a import tax adviser for a few bucks a short time ago to test the hose down on this.