1. If my salary is 5 lacs per annum then how much income tax shall i have to pay?
2. What are the procedures to get income tax reimbursement?
3. Shall i get full income tax reimbursement?
4. Is my salary the only mode for income tax calculation?
5. Say my income tax is 25000 and i have an investment of 30000 under 80C. Will i get a tax savings of 25000? If not, how much?
6. I have house rent of 12000. Can it be income tax rebate? If yes, how much?
MPK-1) It depends on many things, like net salary, other salary components, and the tax deductions. It is hard to say in simple terms.
2) There is no special procedure. Once you file IT return. Then if you paid more tax than actual one. IT Dept, will automatically reimburse to your account within few days.
3) I didn’t get you. Also, hard to say.
4) There are 5 heads of incomes which including all, makes the total income. Based on that total income, taxation will be calculated. Income like Salary, Capital Gain, Business, income from property and income from other sources. If you have only salary income, then that is only considering to arrive at your tax liability.
5) You will not get upfront deduction on TAX you pay. But Sec.80C investment is deducted from your income. After such deduction, the net income is calculated. Tax liability will be on such net income. If you don’t know how to calculate it, google it or take the help of tax expert in your area.
6) If you have HRA and you showed the proof of rent then it is tax free. Otherwise, it is a taxable income.
3) it means if my tax liability is 10000 say, then will I get a reimbursement of 10000, if I made investment with tax benefits?
MPK-If your total income is Rs.3,00,000, then your tax liability will be Rs.5,000. Because up to Rs.2,50,000, there is no tax. So for remaining Rs.50,000, the tax @ 10% will be Rs.5,000. Let us say you invested Rs.50,000 in any tax saving instruments (like insurance, ELSS, tax saving FDs or PPF). Then, your total income will be Rs.3,00,000-Rs.50,000 (tax saving investment)=Rs.2,50,000. So total tax will be NIL. Hope you understood the concept.