Administration Manual - B.E.S.T. Undertaking.

giving all types of rebate under section 88 deduction upto Rs.5,000/- is
allowed from such income tax amount.
How to calculate Income tax
389
Salary income for the purpose of section 192 shall estimated for
any financial year gross salary p.m. X 12 months.
1. Professional tax deduction is allowed under section 16 (ii) of the
Income tax Act.
2. Then deduction of amount of interest payable on housing loan is
allowed as Loss on House Property under section 24 (b).
3. Thereafter, deductions under various sections such as 80C, 80 D,
80DD, 80U is allowed from the income so calculated.
After the above steps, we derive amount of taxable income on
which income tax is calculated as per rates in force.
Working of Income Tax - BEST Undertaking
In case of BEST Undertaking for purpose of annual gross income
received from salary by staff member is calculated for 12 months i.e.
from Mar. to Feb. i.e. on the basis of last year actual income of the
employee the annual income for prevailing assessment year is estimated