If gross salary is Rs. 547457, and the 80c deduction is Rs. 150000, then how tax payable is Rs. 10038?

If gross salary is Rs. 547457, and the 80c deduction is Rs. 150000, then how tax payable is Rs. 10038?

Information 01.09.2017   0 Comments   663  Add to Reading List

It is possible only if the assessee is resident individual and his/her age is more than 60 years but less than 80 years as the exemption limit for such age group is Rs 3,00,000

So the Net income of assessee after deduction Under section 80c would be 3,97,457 ( 5,47,457–1,50,000)

So his taxable income is 3,97,457

Since he is a senior citizen (Age 60–80 yrs), his exemption limit is 3,00,000

So the amount over and above 3,00,000 will be taxable

Taxable amount :- 3,97,457–3,00,000 = 97,457

Tax on above amount @10% is 9,745.7

Add Education cess @2% of tax = 194.9

Add SHEC @1% of tax = 97.45

Hence total tax liability= 9,745.7 + 194.9 + 97.45= 10,038.05. Tax rounded off=

Rs 10,038


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