Income tax deductions for salaried employees
Income tax deductions: Salaried employees

It is mandatory for all people who draw a salary from their jobs to pay income tax. A salaried individual needs to pay tax only if he or she draws above the taxable income. 

Is There Income Tax for All Salaried People?

All incomes up to Rs. 2.5 lakhs are exempt from income tax. Those employees who receive more than Rs. 2, 50, 000 come under the tax net. However, they are taxed under different slabs. Those slabs are as follows:

i) Rs. 2.5 lakhs to Rs. 5 lakhs.

ii) Rs. 5 lakhs to Rs. 10 lakhs.

iii) Above Rs. 10 lakhs.

But the Income tax for salary can be considerably reduced by availing certain exemptions in the income tax act. Paying a visit to the website of a company that handles income tax papers of salaried persons will be of great help in this matter. 

Dates for Filing IT Returns

Income tax department has notified that the date for filing tax returns. It was due on 31 July. At the same time, if any refunds are pending for salaried people, it will be released on demand.

All dues filed under Vivaad se Vishwas Scheme will be paid before 31 December .

Completing and submitting Form ITR-1 Sahaj does not enable reductions in the Salary income tax computation.

 What All Can be Deducted From the Dues of a Salaried Employee?

After your total income has been calculated, you are eligible to get reductions on certain expenses. Having an in depth knowledge about the process and procedures of taxation will save you a lot of hard earned money.

An experienced and professional company will ask the salaried employee for details of the below heads to minimize their income tax amount.

a) Food coupons

b) Medical expenditure incurred outside India

c) Deduction for Donations under Section 80G

d) Deduction on Savings Account Interest under Section 80TTA

e) Deduction for Higher Studies Loan under Section 80E

f) House Rent Allowance

g) Books and periodicals

h) Standard Deductions

i) Gifts and vouchers from employer

j) Relocation allowance

k) Medical Insurance under Section 80D

l) Leave Travel Allowance

m) Health club facility from the employer

n) Additional Deduction for Interest on Home Loan under Section 80EE and Section 80TTA

o) Reimbursement of mobile phone charges

p) Section 80C, 80CCC and 80CCD(1)

q) Cab Facility transport from the employer

r) Notice Pay and Joining Bonus

s) Interest on Home Loan under Sections 80C and 24

Which is the Form for Submitting Tax Returns?

If a salaried person who falls under any of the slabs that can be taxed, they have to fill form 16. The intricacies of availing deductions are best handled by a company with reputation and experience in handling corporate finance affairs. What all from the above list is applicable to the payee and how much deduction can be availed on each is a tricky calculation.

The employee first needs to understand that he or she will save much more on tax than the small amount of fees to be paid to the tax professional. 

Drafted By:
CS.A.Maniraj.,B.Com.,ACS.,CA(Fin), Independent Director 
Certified CSR Professional., Certified GST Professional.

Income tax deductions for salaried employees
Maniraj Anantham 1 March, 2024
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