My Present Salary is Rs. 15,000 per month and is paid in cash by my Employer. Is this Salary Taxable?

Question

I was working in Merchant Navy for past 8 years. Since July 2006 I have taken up a job in India and drawing a net Salary of Rs. 15,000 per month in cash from my Employer. In year 2002, when I was holding my NRI status I took a NRI Loan of Rs. 800000 to buy Apartment. Since then I have been paying my EMI regularly.
But as I have started working in India at present, I have changed the status of the taken Loan from NRI to Resident Loan.and paying the calculated EMI for the remaining amount of the Loan.
I wish to seek your advice that do I need to pay Income Tax on my net Salary? I also would like to know that in case if I have to pay Tax, how will this Home Loan help me to get excemption on the Tax?

Answer 1

since your income u/h salary is above the maximum exemption limit which is Rs 100,000 for AY 2007-08 and Rs 110,000 for AY 2008-09. The income will be taxable in india .

However you can claim the deduction u/s 80C in respect of EMI paid for the purchase or construction of a residential house property,the income of which is subject to tax u/h house property(or which would have if it had not been used for your own residence) subject to certain conditions for which you need to consult your tax expert.

Answer 2

Yes you can get deduction u/s 80c but not the exemption,

Clarify
Residential status (RS)
Gender
Age
Place for which you have taken the loan.

See, in India if the RS is resident then definitely you are liable to pay tax as the minimum exemption limit is crossed.
Sec 80 C will help you regarding deduction.
You can claim a maximum deduction of 100000/-

It does not matter if you receive the salary in cash or in kind.

According to sec 80C following can be obtained..

Any sum paid including accrued interest as subscription to home loan account scheme of the National Housing Bank or contribution to any notified pension fund set uo by the national housing Bank.

Any amount towards the cost of purchase/construction of a residential property (including repayment of loan taken from Govt. bank, cooperative bank,LIC,National Housing Bank,assessee's employer where such an employer is a public company/public sector company/university/co-operativ... society)

Answer 3

Even though it is paid in cash, all are accountable:The interest paid during the financial period is eligible for Tax reduction: verify with nearby IT office or a auditor

Answer 4

Take an advise from a tax consultant

Answer 5

see the salary is 1,80,000 per year
plus the perks you enjoy, it will be defintiely taxable.