ITR Filling: Tell the CA-"Wait a minute sir", you file your tax yourself

ITR Filling: The last date for filing an Income Tax Return (ITR) is usually 31st July. But, this time the deadline has been extended to 15th September. As the deadline approaches, people's tension increases and the biggest question that is in everyone's mind is- "How much tax will I have to pay?". To find the answer to this question, people often go to a chartered accountant. But, the answer to this question is hidden in your salary slip.

For this, you have to understand on which part of your salary the government takes tax and on which you get exemption. If you understand this, then you will calculate your tax yourself.

First of all, let us talk about those parts on which you have to pay full tax without any exemption.

Basic Salary

This is the most important part of your salary, it is the real earnings of your hard work, so it is completely taxable.

Dearness Allowance (DA)

The government gives allowance to fight inflation, this is also completely taxable.

Other allowances

Apart from all this, if you get any allowance like medical allowance, city compensatory allowance, over time allowance or meal allowance, then that also comes completely under the purview of tax.

Now let us know about those parts where the government gives you some relief.

House Rent Allowance (HRA)

If you live in a rented house, then with some conditions you can claim tax exemption on it. If you live in your own house, then the entire amount of HRA will be taxable.

Leave Travel Allowance (LTA)

The company gives you Leave Travel Allowance for traveling during holidays. You can avail tax exemption on your travel expenses twice in 4 years. This does not include hotel and food expenses.

Children's education and hostel allowance

Apart from this, you can avail a discount of ₹1200 per child annually (₹2400 for up to two children) on the allowance given by the company for your children's education. There is a discount of ₹300 per month per child (₹7200 per year for up to two children) on hostel allowance. The amount above this will be taxable.

However, there are some parts of your salary on which not even ₹1 is taxed.

Phone and Internet bill

If the company pays your mobile and internet bill, then this amount is completely tax free. For this, you just have to submit the original bill.

Medical Insurance Premium

If your company pays the premium of medical insurance for you and your family, then you do not have to pay any tax on it.

Become your own 'tax calculator'

First of all, open any good online 'income tax calculator'. Enter your assessment year (eg AY 2024-25), your age, and your taxable salary (after deducting tax-free things like HRA, LTA from the total salary). If you have earned from interest, rent or any other source, then enter that too.

Most importantly, if you are choosing the old tax system, then enter the information of your investments (eg PPF, ELSS, insurance) made under section 80C, 80D etc. There is no need in the new system. As soon as you press the button, the calculator will tell you what your total tax liability is.

Understanding income tax is not a difficult task. If you understand a little information and salary slip carefully, you can file tax yourself and save yourself from paying money to CA.

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