Here's a ready reckoner on how to calculate your tax dues so that you can plan your investments accordingly
A . Gross Total Income
- Salary income Salary includes basic pay, HRA, annuity, pension, bonus or commission, and so on, received from the employer during the year.
Tip Restructure salary components to ensure that reimbursements are not received as allowances. - House property Tax is on the annual value of the house property after allowing certain deductions. Deduction of interest up to Rs 1.5 lakh allowed on home loan for self-occupied property. On second property, if it is rented out, entire interest paid on loan is deductible from income.
- Capital gains Profits from sale of any capital asset generate short-term or long-term capital gains, depending on duration of holding.
Tip Sell short-term loss-making holdings to set off against short-term capital gains made. - Business income The profits and gains of any business or profession, such as that of doctor or chartered accountant, which was earned during the year.
Tip Claim all expenses relating to business or profession. - Other sources Any income that is outside the other four heads, such as interest from taxable investments like NSC or bank fixed deposits, comes in here.
Tip Include income from all such sources in your I-T return.
