"Simple Steps to Calculate Your Taxable Income"

To calculate taxable income for salaried individuals, start with the gross salary, subtract exemptions, standard deductions, and professional tax, add income from other sources, and deduct eligible savings and expenses under relevant tax sections to arrive at the final taxable income.


To calculate taxable income for salaried individuals, follow these steps:
Step Description
1 Start with the Gross Salary earned during the financial year.
2 Deduct allowances exempt under Section 10 of the Income Tax Act (e.g., House Rent Allowance, Leave Travel Allowance).
3 Subtract standard deductions (e.g., ₹50,000 for salaried individuals as per the latest regulations).
4 Deduct professional tax paid (if applicable).
5 Add income from other sources (e.g., interest earned on savings accounts, fixed deposits).
6 Deduct eligible deductions under Section 80C, 80D, and other relevant sections (e.g., investments in EPF, PPF, insurance premiums, medical expenses).
7 The resulting amount is the Taxable Income.


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