#1
August 1st, 2016, 09:18 AM
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INCOME Tax Example-15
Hii sir, My yearly Salary is 1,50,000. I wants to get the Example to Calculate the Income tax on My Salary will you please provide it ?
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#2
August 1st, 2016, 10:18 AM
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Re: INCOME Tax Example-15
As you asking for the Example to Calculate the Income tax on the Salary the Example is given below Example for Calculating Income Tax from Salary: Let's take the example of Mr. A who is a CA and his Gross Salary is Rs.80,450, which includes: Basic= 50000 + HRA=20000 + Travel allowance=1000 + Child's educational allowance=200 + Medical allowance=1250 + other allowance=8000 The deductions allowed will be Travel allowance=1000 + Child's educational allowance=200 + Medical allowance=1250 provided that Mr. A submits medical bills worth Rs.1250. Mr. A has a house of his own so the HRA is not deducted. So his total exemption will be Rs.2,450. The taxable annual gross income will be Rs. (80,450-2,450) x 12 which is Rs.9,36,000. If Mr. A declares loss on House Property for the interest he is paying for the loan taken to buy his house worth Rs.1,00,000. The Gross total income will be Rs.8,36,000 (9,36,000-1,00,000). Mr. A declares Rs.1,00,000 as investment under Section 80C and Rs.25,000 under Section 80D, the total taxable income will be Rs.7,11,000 (8,36,000-1,25,000). This is the net taxable income. And Mr. A's income tax rate would be: For the first Rs,2,00,000 it is nil, for the next Rs.5,00,000 it will be 10% that is Rs.50,000. And on the balance of Rs,11,000, the tax rate is 20% amounting to Rs.2,200. Mr. A's total annual tax is Rs.53,766 (Rs.52,200 plus the educational cess and higher education cess that is charged at 3% which is Rs.1,566). The monthly tax that is levied on him will be Rs.4,480.50/-.cghs aiims rate |