How tax is calculated on my income from 2 companies


Hi all

Please advice me in this. This is for year 2016 17… i i switched company in aug 2015. So i have 2 form 16’s… clearly my first company pay is 3.47lpa and and new revised package in 2nd company is 5.5lpa… when i open itr site to submit returns it was showing my total salary for year as 477307(152929+325378)… is it correct? If it is correct then 250000 is tax free right? So i have to pay tax on remaining 227307? Confused…help me guys


Yes, you are correct. You need to pay tax on balance amount after deducting Rs. 2.5 lakhs.

I hope Total Salary of Rs. 477307 was calculated after considering your investments, if any (i.e. 80C deduction like LIC, PPF, etc) then you need to pay tax on balance amount of Rs. 227307. But if such investment, if any was not considered while calculating your income from salary then you can reduce your taxable salary income by amount of investments made u/s 80C subject Max. Rs. 150000 and by Medical insurance premium u/s 80D, if any.