Budget 2018: Impact of Budget on Salary
- Blog|Income Tax|
- < 1 minute
- By Taxmann
- |
- Last Updated on 4 January, 2021
Latest from Taxmann
Union Budget 2018 Impact on In-Hand Salary of an Employee:
|
PARTICULARS |
Gross Salary |
|
|
Rs. 12,00,000 |
||
|
After Budget |
Before Budget |
|
|
Basic Salary (50% of Gross Salary) |
600,000 |
600,000 |
|
Add: Allowances |
|
|
|
Special Allowance |
261,000 |
261,000 |
|
HRA** (50% of Basic Salary)
** Assuming an employee incurs 20% of his gross salary to pay rent for his house
|
300,000 |
300,000 |
|
Children Education Allowance |
1,200 |
1,200 |
|
Children Hostel Expenditure Allowance |
3,600 |
3,600 |
|
Medical Reimbursement |
15,000 |
15,000 |
|
Transport Allowance |
19,200 |
19,200 |
|
|
|
|
|
Gross Salary (A) |
1,200,000 |
1,200,000 |
|
Taxable Salary (B)* |
975,200 |
981,000 |
|
Less : Deductions (C) |
|
|
|
A. Section 80C |
150,000 |
150,000 |
|
(Insurance Preimum, Children School Fees, Post Office Scheme, etc.) |
|
|
|
B. Section 80D |
25,000 |
25,000 |
|
(Medical Insurance Premium) |
|
|
|
|
|
|
|
Taxable Income (D) = (B – C) |
800,200 |
806,000 |
|
Total Tax Liability (E) |
75,442 |
75,911 |
|
|
|
|
|
TDS per month (E)/12 |
6,287 |
6,326 |
|
|
|
|
|
In Hand Salary Per Month |
93,713 |
93,674 |
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