What part of salary is taxable in India?
50% of basic salary for metro or 40% of basic salary for non-metro.
What income is tax free?
Individuals with Net taxable income less than or equal to Rs 5 lakh will be eligible for tax rebate u/s 87A i.e tax liability will be nil of such individual in both – New and old/existing tax regimes. Basic exemption limit for NRIs is of Rs 2.5 Lakh irrespective of age.
Which business is tax free in India?
Income from farming and agriculture is tax free. Agriculture income is exempted under section 10(1) of Income Tax Act. Even income from activities such as poultry and cattle rearing is considered as agricultural income.
Is PF taxable?
As per the notification, issued on August 31, contributions above ₹2.5 lakh in the Employee Provident Fund (EPF) per year will be taxed. In cases where there is no employer contribution in the EPF account, the threshold will be ₹5 lakh a year.
Is HRA taxable?
For most employees, House Rent Allowance (HRA) is a part of their salary structure. Although it is a part of your salary, HRA, unlike basic salary, is not fully taxable. Subject to certain conditions, a part of HRA is exempted under Section 10 (13A) of the Income-tax Act, 1961.
On what basis salary is taxable?
2 Points to consider:
a) Salary income is chargeable to tax on “due basis” or “receipt basis” whichever is earlier. b) Existence of relationship of employer and employee is must between the payer and payee to tax the income under this head.
What are the 5 types of income?
The main types of income are:
- employment income.
- pension income.
- social security income.
- trading income.
- property income.
- savings and investment income and.
- miscellaneous income.
What are the 3 main taxes?
3 Main Types of Taxes
- Taxes on income – direct taxes. …
- Taxes on expenditure – added to price of goods/services like sales tax – indirect taxes. …
- Taxes on business – such as taxes on the profits made by a company.
How do I figure my taxable income?
Subtract any standard or itemized tax deductions from your adjusted gross income. Subtract any tax exemptions you are entitled to, like a dependent exemption. Once you’ve subtracted any tax form adjustments, deductions, and exemptions from your gross income, you’ve arrived at your taxable income figure.