Gross & Net salary before Tax and confusion among ITR. H

Dear Members, Hi

I will be applying for HSMP (Stage 1, in-country) in about two week’s time. By the help to this precious forum, I have arranged all the documents. But confuse about one thing. Your help will be greatly appreciated.

My salary slips are as follows

Gross salary: __________
Deductions (Provident Fund, GP Fund, Health Insurance):__________
Net Salary before Tax: ___________

I am paying tax on the Net Salary amount. It is also important to mention that the deductions from my salary are non taxable. Now my query is that will the case worker consider my Gross Salary or Net Salary before Tax? If the case worker considers my gross salary then the case will be rejected because I am paying annual tax on the Net salary amount.

Now I am quite confused in this scenario that how to explain the case worker for considering my Net salary before tax amount.

I have arranged a letter from my employer stating my claimed period gross salary, deductions and net salary before tax. Will this letter work???

Your expertise and help will be very much appreciated..


Waiting for your reply

Thanks

The letter from the employer works BUT caseworkers consider only gross salary mentioned in your payslips.

Dear J
Thanks for your reply. Now if the case worker considers my gross salary then I am in trouble, becuase as i explained before . the decutions from my gross salary are no taxable and I am paying Tax on the Net Salary before Tax figure....

If I claimed the amount of Net Salary Before Tax for my period, Then my ITR is comparable other wise it will be refused

Please Dear forum , suggest me a solution regarding this.????

I will be waiting

Thanks

don't understand you. how can you be paying tax on net salary. Net salary is Gross Salary - Deductions (such as pension) - Tax.

So you cannot be paying tax on your net salary. Though it is true that your salary is taxed after deductions such as pensions, caseworkers only consider salary before any deduction which is the gross salary.

Thanks for your reply Makon

You are right that my salary is tax after my decutions, such as pentions etc.and I am paying tax on final amount means Gross salary Subtracted dectutions= Net salary before Tax

Now if the casewoker is considering my Gross salary, then the ITR which i have got is not comparable with Gross Salary. Leme give an example

Yearly Gross Salary= Rs 7 Lakhs
Yearly Dedutions(pension, GP fund, Heath insurance) = Rs 48,000
Net Salary before tax= 652,000

Now If i am paying Tax on Rs 652,000 right and the case worker adds my gross amount which lets suppose 7 lakhs. Then there will be a confusion among my Gross and ITR. Gross will be 7 Lakhs and ITR figure will be 652,000.

Anyone with the same experince or Problem Please guide me in this regard

I will be very greatfull

Thax

The caseworker will find it helpful if you explain, in a covering letter, how the gross salary indicated on the payslips corresponds with the taxable income shown on the tax return. A short paragraph will serve very well. Based on my experience, you may want to draw the caseworker's attention to the pre-tax deductions (in your example, the Rs 48k) as shown on the payslips, as a way of explaining how to get from gross earnings to taxable income, as indicated on the tax return. You should claim the gross earnings, based on what's indicated on the payslips. AG

I agree with this.

makon wrote:don't understand you. how can you be paying tax on net salary. Net salary is Gross Salary - Deductions (such as pension) - Tax.

So you cannot be paying tax on your net salary. Though it is true that your salary is taxed after deductions such as pensions, caseworkers only consider salary before any deduction which is the gross salary.