1. Practical Income Tax
  2. Income Tax for Salaried Employees
  3. Employees on Payroll
Check sibling questions

Important Deduction for Income Tax for Salaried Persons

Last updated at Dec. 16, 2024 by Teachoo

80TTA

Interest Earned on Both Savings and FD

Saving Bank Interest

Maximum 10000 Deduction,

Total Interest Earned whether FD or Savings is Income from Other Sources

Learn More  

Suppose My Salary Income is 30000 per month

What is My Income from Salary

View answer

Particular Amount
Monthly Salary 30000
Income from Salary 360000
Less: Standard Deduction 40000
Net Income from Salary 320000

Suppose My Salary Income is 30000 per month

Also I have Interest Income is 5000 per annum of Savings Account

What is My Income from Salary?

Also what is my Gross Total income

View answer

Particular Amount
Monthly Salary 30000
Income from Salary 360000
Less: Standard Deduction 40000
Net Income from Salary 320000
Income from Other Sources

5000  (Total interest Income covered here)

Gross Total income 325000

Suppose My Salary Income is 30000 per month

Also I have Interest Income is 5000 per annum of Savings Account

What is My Income from Salary

Also what is my Gross Total income and Net Total Income

View answer

Particular Amount
Monthly Salary 30000
Income from Salary 360000
Less: Standard Deduction 40000
Net Income from Salary 320000
Income from Other Sources 5000
Gross Total income 325000
Deduction Section 80TTA

5000       

(Deduction of Savings Bank Interest Available of 10000 max

(in our case 5000 is Interest,so 5000 Deduction)

Net Total Income 320000

Suppose My Salary Income is 30000 per month

Also I have Interest Income is 15000 per annum of Savings Account

What is My Income from Salary

Also what is my Gross Total income and Net Total Income

View answer

Particular Amount
Monthly Salary 30000
Income from Salary 360000
Less: Standard Deduction 40000
Net Income from Salary 320000
Income from Other Sources 15000  (Total interest Income covered here)
Gross Total income 335000
Deduction Section 80TTA

10000 

(Deduction of Savings Bank Interest Available of 10000 max)

Net Total Income 325000

Suppose My Salary Income is 30000 per month

Also I have Interest Income is 15000 per annum of Savings Account+8000 on FD Account

What is My Income from Salary

Also what is my Gross Total income and Net Total Income

View answer

Particular Amount
Monthly Salary 30000
Income from Salary 360000
Less: Standard Deduction 40000
Net Income from Salary 320000
Income from Other Sources 23000  (Total interest Income covered here)
Gross Total income 343000
Deduction Section 80TTA 10000   (Deduction of Savings Bank Interest Available of 10000 max)
Net Total Income 333000

Q1 Calculate Gross Total Income,Deductions and Net total Income in following Cases

Particulars Case 1 Case 2 Case 3 Case 4
Income from Salaries 400000 400000 400000 400000
Interest Income        
On FD 3000 13000 30000 0
On Savings 2000 12000 0 40000
Total 5000 25000 30000 40000

View answer

Particulars Case 1 Case 2 Case 3 Case 4
Income from Salaries 400000 400000 400000 400000
Less: Standard Deduction 40000 40000 40000 40000
Net Income from Salary 360000 360000 360000 360000
Income from Other Sources 5000 25000 30000 40000
Total Gross Income 365000 385000 390000 400000
Less Deduction - Chapter VIA        
80 TTA 2000 10000 0 10000 (Deduction of Savings Bank Interest Available of 10000 max)
Net Total Income 363000 375000 390000 390000
TAX 5650 6250 7000 7000
REBATE 0 0 0 0
NET TAX 5650 6250 7000 7000
CESS 226 250 280 280
TAX+ CESS 5876 6500 7280 7280

 

80TTB (For senior citizen)

Interest Earned on Both Savings and FD

Saving Bank Interest + FD Interest

Maximum 50000 Deduction,

Total Interest Earned whether FD or Savings is Income from Other Sources

*For senior citizen monthly pension is taxable under Income from salary.

Suppose My Pension Income is 30000 per month

What is My Income from Salary

View answer

Particular Amount (For Senior Citizen)
Monthly Pension 30000
Income from Salary 360000
Less: Standard Deduction 40000
Net Income from Salary 320000

Suppose My Pension Income is 30000 per month

Also I have Interest Income is 5000 per annum of Savings Account

And 10000 for FD Interest.

What is My Income from Salary

Also what is my Gross Total income

View answer

Particular Amount (For Senior Citizen)
Monthly Pension 30000
Income from Salary 360000
Less: Standard Deduction 40000
Net Income from Salary 320000
Income from Other Sources 15000 (Total interest Income covered here)
Gross Total income 335000

Suppose My Pension Income is 30000 per month

Also I have Interest Income is 5000 per annum of Savings Account

What is My Income from Salary

Also what is my Gross Total income and Net Total Income

View answer

Particular Amount (For Senior Citizen)
Monthly Pension 30000
Income from Salary 360000
Less: Standard Deduction 40000
Net Income from Salary 320000
Income from Other Sources 5000
Gross Total income 335000
Deduction Section 80TTB

5000     

(Deduction of Savings Bank Interest & FD Interest Available of 50000 max (in our case 5000 is saving bank Interest, so our case 5000 deduction)

Net Total Income 325000

Suppose My Salary Income is 30000 per month

Also I have Interest Income is 15000 per annum of Savings Account

And 40000 for FD Interest.

What is My Income from Salary

Also what is my Gross Total income and Net Total Income

View answer

Particular Amount (For Senior Citizen)
Monthly Pension 30000
Income from Salary 360000
Less: Standard Deduction 40000
Net Income from Salary 320000
Income from Other Sources 55000  (Total interest Income covered here)
Gross Total income 335000
Deduction Section 80TTB 50000       (Deduction of Savings Bank Interest & FD Interest Available of 50000 max.
Net Total Income 285000

Suppose My Salary Income is 30000 per month

Also I have Interest Income is 15000 per annum of Savings Account+8000 on FD Account

What is My Income from Salary

Also what is my Gross Total income and Net Total Income

View answer

Particular Amount (For Senior Citizen)
Monthly Pension 30000
Income from Salary 360000
Less: Standard Deduction 40000
Net Income from Salary 320000
Income from Other Sources 23000  (Total interest Income covered here)
Gross Total income 343000
Deduction Section 80TTB 23000   (Deduction of Savings Bank Interest & FD Interest Available of 50000 max.
Net Total Income 320000

Q1 Calculate Gross Total Income,Deductions and Net total Income in following Cases

Particulars Case 1 Case 2 Case 3 Case 4
Income from Salaries 400000 400000 400000 400000
Interest Income        
On FD 3000 13000 30000 15000
On Savings 2000 12000 0 40000
Total 5000 25000 30000 55000

View answer

Particulars Case 1 Case 2 Case 3 Case 4
Income from Salaries 400000 400000 400000 400000
Less: Standard Deduction 40000 40000 40000 40000
Net Income from Salary 360000 360000 360000 360000
Income from Other Sources 5000 25000 30000 55000
Total Gross Income 365000 385000 390000 415000
Less Deduction - Chapter VIA        
80 TTB 5000 25000 30000

50000   

(Deduction of Savings Bank Interest & FD Interest Available of 50000 max)

Net Total Income 360000 360000 360000 365000
TAX 3000 3000 3000 3250
REBATE 0 0 0 0
NET TAX 3000 3000 3000 3250
CESS 120 120 120 130
TAX+ CESS 3120 3120 3120 3380

 

80D

Medical Insurance( Family 25000 + Parents 25000)

(Family 25000 + Parents 25000)( If Senior Citizen Then 50000)

(Included In Above 5000 For Medical Lab Test)

Learn More

Q2 Calculate Gross Total Income, Deductions and Net total Income in following Cases

Particulars Case 1 Case 2 Case 3 Case 4
Income from Salaries 400000 400000 400000 400000
Medical Insurance Made        
Self 8000 10000 10000 30000
Wife 8000 10000 10000 30000
Children 0 10000 10000 30000
Father (Senior Citizen) 0 0 30000 60000
TOTAL 16000 30000 60000 150000

View answer

Particulars Case 1 Case 2 Case 3 Case 4
Income from Salaries 400000 400000 400000 400000
Less: Standard Deduction 40000 40000 40000 40000
Net Income from Salary 360000 360000 360000 360000
Income from Other Sources 0 0 0 0  (Interest Income)
Total Gross Income 360000 360000 360000 360000
         
Less Deduction - Chapter VIA        
Section 80D        
Family 16000 25000 25000

25000   

(MAX 25000 FOR SELF,WIFE AND CHILDREN)

Parents 0 0 30000

50000   

(MAX 25000 FOR PARENTS,50000 FOR SENIOR CITIZENS)

Total 80D 16000 25000 55000 75000
         
Net Total Income 344000 335000 305000 285000
TAX 4700 4250 2750 1750
REBATE 2500 2500 2500 1750
NET TAX 2200 1750 250 0
CESS 88 70 10 0
TAX+ CESS 2288 1820 260 0

 

80C

  1. Life Insurance Premium
  2. Mutual Fund
  3. EPF ( Employee Contribution to PF (Normally 12% Of Basic + Da )
  4. PPF(Public Provident Funds)
  5. NSC (National Saving Certificates)
  6. KVP/IVP (Kisan Vikas Patra)
  7. FD>5Yrs 
  8. Tuition Fees Of Children
  9. Housing Loan :( Principal Interest Repaid only)

Maximum Deduction is 150000 for Section 80C

Learn More

Q3

Particulars Case 1 Case 2 Case 3 Case 4
Monthly Flat Salary 20000 35000 80000 200000

Employees has no Savings,However his PF Deducted @ 12%

View answer

Particulars Case 1 Case 2 Case 3 Case 4
Income from Salaries 240000 420000 960000 2400000
Less: Standard Deduction 40000 40000 40000 40000
Net Income from Salary 200000 380000 920000 2360000
Income from Other Sources 0 0 0 0
Total Gross Income 200000 380000 920000 2360000
         
Less Deduction - Chapter VIA        
80C 28800 50400 115200 150000
80D 0 0 0 0
80G 0 0 0 0
80TTA 0 0 0 0
Total Deduction 28800 50400 115200 150000
         
Net Total Income 171200 329600 804800 2210000
TAX 0 3980 73460 475500
REBATE 0 2500 0 0
NET TAX 0 1480 73460 475500
CESS 0 59 2938 19020
TAX+ CESS 0 1539 76398 494520

Mixed question for all section

Particular Amount
Basic Salary p.m 60000
Special Pay p.m 40000
Uniform Allowance p.m 2000
(Declaration Given)  
Transport Allowance p.m 2500
   
Annual Income  
Free Alto Car and Driver Given by Co  
Car Cost 350000
Car cc 1000
Driver Salary p.m 8000
(for Partly official Partly personal)  
   
ANNUAL SAVINGS  
EPF 12%
Life Insurance 10000
   
Medical insurance   
Self 11000
Spuse 11000
Mother 11000
Father (Senior Citizen) 11000
  44000
   
Donation to PM Relief fund 3000
Donation to Temple 2000
  5000
   
Interest income   
on FD 3000
On Savings 14000
  17000

SALARY

Particulars Amt Received Exempt Taxable
Basic Salary p.m 60000 0 60000
Special Pay p.m 40000 0 40000
Uniform Allowance p.m 2000 2000 0
Transport Allowance p.m 2500 0 2500
Car     600
Driver     900
Total 104500 2000 104000

View answer

For Normal Citizens

Particulars Amt
Income from Salaries 1248000
Less Standard Deduction 40000
Net Income From Salary 1208000
Income from Other Sources 17000
   
Total Gross Income 1225000
   
Less Deduction - Chapter VIA  
80C 96400
80D 44000
80G 4000
80TTA 10000
Total Deduction 154400
   
Net Total Income 1070600
TAX 133680
REBATE 0
NET TAX 133680
CESS 5347
TAX+ CESS 139027

 

If we Repay Housing Loan EMI

In case of Self Occupied Property,

 We can claim loss from House Property of Maximum 200,000 of Interest Amount

Also,we can claim Deduction of Principal Amount under Section 80C

(Max Deduction of 80C is 150000)

 Learn more

Q4 Suppose in last question

Housing Loan int repaid Amount
Principal 160000
Interest 260000
Total 420000

View answer

Particulars Amt
Income from Salaries 1248000
Less Standard Deduction 40000
Net Income From Salary 1208000
Income From House Property -200000
Income from Other Sources 17000
   
Total Gross Income 1025000
   
Less Deduction - Chapter VIA  
80C(96400+160000) 150000
80D 44000
80G 4000
80TTA 10000
Total Deduction 208000
   
   
Net Total Income 817000
TAX 75900
REBATE 0
NET TAX 75900
CESS 5347
TAX+ CESS 81247
  1. Practical Income Tax
  2. Income Tax for Salaried Employees

    3. Employees on Payroll

    Employees On Contract →
Employees On Contract →
Practical Income Tax
Income Tax for Salaried Employees

About the Author

CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.