cash salary slips format for rupees 10000 without deductions

But, the maximum exemption, in this case, will be Rs 84,000 that can be claimed under HRA (See: factors affecting HRA). The HRA component of the salary, in this case, will be Rs 15,000, but the actual rent paid may be Rs 10,000 or even Rs 20,000. To understand the impact, assume someone is living in Delhi and earns a basic salary of Rs 30,000 per month. You can use HRA exemption Calculator to estimate your exempted HRA. The amount of HRA exemption is the lower of the following:ī) Actual rent paid less 10% of basic monthly salaryĬ) 50% of basic salary if the taxpayer is living in a metro cityĭ) 40% of basic salary if the taxpayer is living in a non-metro cityĪs the lowest of the above is exempt from tax, it is common for employers and employees to structure the salary in a manner to avail the maximum tax exemption under this head. The HRA exemption can also be claimed by submitting proof of rent paid to the employer or at the time of filing income tax returns under Sec 10(13A). House Rent Allowanceįor salaried taxpayers, HRA is the first brush with tax savings, the HRA received from the employer qualifies for exemption as long as the employee lives in rented accommodation and pays rent to the owner.

Read: Understanding the difference between Tax Deduction, Tax Exemption, and Tax Rebate 1. Let us examine some options through which salaried taxpayers can reduce their tax outgo. For salaried employees, Section 10 of the Income Tax details a wide range of allowances that can be used to reduce their tax outgo. Salaried taxpayers should also understand that these avenues are to reduce their tax burden and, in no way, a means to avoid paying income tax. At this juncture, it would help to understand the difference between income tax exemption, rebate, and deduction to get a grip on how to avail income tax concessions. These tax savings are beyond the widely popular Section 80C tax savings under which one can save and invest up to Rs 1.5 lakh in a financial year. And also provides multiple income tax exemptions or deductions for salaried employees to reduce tax liability. The tax authorities on their part allow employers to structure the salaries of their salaried employees in a manner that they are tax-efficient and help them save tax through several allowances that are included in their income. They look for avenues such as tax deductions, allowances, and exemptions to realize their objective to reduce their tax outgo.

They work out ways through which their taxable income goes down, and their net income in their hands go up. Salaried taxpayers constantly juggle between their income and tax savings.

Cash salary slips format for rupees 10000 without deductions