Mr. Ahmed, a 62-year-old senior citizen is employed in a private company. His total annual income is ₹6,20,000. He has contributed ₹1,00,000 to the Public Provident Fund and paid a premium of ₹80,000 for the year for health insurance and a donation of ₹10,000 to CM's Relief Fund. What is tax payable?
Mr. Ahmed, a 62-year-old senior citizen is employed in a private company. His total annual income is ₹6,20,000. He has contributed ₹1,00,000 to the Public Provident Fund and paid a premium of ₹80,000 for the year for health insurance and a donation of ₹10,000 to CM's Relief Fund. What is tax payable?
(1) Total Yearly income = 6,20,000
(2) Total deduction (According to 80C)
Public Provident Fund
1,00,000
Insurance
80,000
Section 80C permits a maximum deduction
1,50,000
(3)Amt. given to CM's Relief Fund (According to 80 G) = 10,000
(4) Taxable income = (1) - [(2) + (3)]
= 6,20,000 - [1,50,000 + 10000]
= 4,60,000
The taxable income is in the slab 3 lakh to 5 lakh.
Income tax = (Taxable income - 3,00,000) ×5100
= (4,60,000 - 3,00,000) ×5100
= 1,60,000 ×5100
= 8000
Education cess is levied on income tax.
Education cess = 8,000 × 2100 = 160
Secondary and higher education cess = 8,000 ×1100 = 80
Total Income tax = 8000 + 160 + 80 = 8,240
Tax payable by Mr. Ahmed is ₹8,240
(1) Total Yearly income = 6,20,000
(2) Total deduction (According to 80C)
|
Public Provident Fund |
1,00,000 |
| Insurance |
80,000 |
|
Section 80C permits a maximum deduction |
1,50,000 |
(3)Amt. given to CM's Relief Fund (According to 80 G) = 10,000
(4) Taxable income = (1) - [(2) + (3)]
= 6,20,000 - [1,50,000 + 10000]
= 4,60,000
The taxable income is in the slab 3 lakh to 5 lakh.
Income tax = (Taxable income - 3,00,000) ×5100
= (4,60,000 - 3,00,000) ×5100
= 1,60,000 ×5100
= 8000
Education cess is levied on income tax.
Education cess = 8,000 × 2100 = 160
Secondary and higher education cess = 8,000 ×1100 = 80
Total Income tax = 8000 + 160 + 80 = 8,240
Tax payable by Mr. Ahmed is ₹8,240
