Every Individual who is employed in any organisation and receiving payments in the form of salary is required to pay Income Tax on the salary received by him. The final Income Tax will be determined for an individual at the time of filing IT Returns, after considering any other income earned by the individual and after allowing all the deductions and exemptions allowed under the Income Tax Act 1961.
Every employer is statutorily liable to deduct income tax before crediting such salary to the individual. Therefore you need not wait to pay tax till the time of filing IT Returns. Infact, you receive the salary only after paying the Income tax through your employer by way of a deduction from salary. So, income tax is deducted at the point of source itself. It is called Tax Deducted at Source (TDS).
You might have seen various components in your salary apart from your Basic Salary and DA. It includes SODEXO MEAL PASSES, HRA, Travelling Allowance, Conveyance Allowance and many more. The reason why they split the salary is, the Income Tax Act provides exemption Under Section 10 for certain types of Salary Income.
Also, the Income Tax Act provides deduction to an individual from the salary income if he invest or spend in any of the modes specified under CHAPTER VI A of the Income Tax Act as follows: (subject to the limit specified in Income Tax Act)
So, it is better to get the simplified services of FIRSTMAN to avail the exemptions and deductions to the fullest extent possible as we have expertised professionals in Income Tax Law
As we have seen in above that the principal part of loan is allowable as deduction under chapter VI A, the interest paid on the Loan taken for the House property is allowable as deduction as follows:
We FIRSTMAN, offer professional services at minimum cost but provide tax advices to the maximum extent possible which will help salried persons to save their hardly earned salary. Feel free to knock our doors!