It's important for an individual to calculate his/her total taxable income to know the correct income tax amount payable by him/her. One can earn income from different sources; these include salary, rent, capital gains from shares and mutual funds etc.
parts:
a) Income from salary
b) Income from house property
c) Income from capital gains
d) Income from business and profession
e) Income from other sources
Once the sources of income are determined, the individual must ensure to file ITR using correct the income tax return form for FY 2021-22 (AY 2022-23).
- Income under the head 'Salary'
The total taxable income under the head 'Salary' can be easily computed via one's Form 16. It is a TDS certificate containing details of the tax deducted from salary income in each quarter, total salary paid, income tax regime chosen, tax exemptions and deductions claimed (if opted for old income tax regime).
Form 16 has to be mandatorily issued by the employer if tax has been deducted during the financial year
Form 16 has to be mandatorily issued by the employer if tax has been deducted during the financial yearAlso Read: What to check in Form 16 for ITR filingDo note that there are certain tax exemptions and deductions that can be claimed from salary income only. Further, these tax exemptions and deductions can be claimed only if the individual opts for old income tax regime. Submission of documentary proof is mandatory to claim tax exemptions and deductions.
Some of the examples of tax exemption and deductions are - Tax exemption on house rent allowance, leave travel concession and standard deduction of Rs 50,000.However, what happens if you haven't received Form 16 from your employer? In such a scenario, your salary slips will help you to compute your taxable salary income.If you are a pensioner, then pension received from employer will be taxable under the head, 'Income from salary'.
- Income from house property
To know income under this head, one must first understand three concepts:a) Self-occupied propertyb) Rental propertyc) Deemed to be let outSelf-occupied property is the property that is occupied by the individual himself/herself. For income tax purpose, an individual can choose any house as self-occupied house, irrespective whether he/she is residing in it or not. Income from self-occupied property will be nil.
An individual can claim any two houses as self-occupied property if he/she has more than two houses. An amendment was announced effective from FY 2019-20. From April 1, 2019, if an individual has two or more
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