This is regarding calculating Income Tax on Income earned between 01-04-2008 & 31.03.2009 ie AY 2009-2010?



My Father in Law has received following Income between 01.04.2008 & 31.03.2009.

He is Not a Senior Citizen & has no other Income

Salary : INR 4,26,420.00

Value of Perks u/s 17(2): INR 3,537.00

Investments Qualifying under
Sec 80 C ie (PF+PPF+LIC Prem) INR 1,14,610.00

Payments qualifying under
Sec 80 D INR 5,052.00

Interest Income INR 2,47,364.00

Dividends on Shares INR 82,000.00

Pls advise his Tax Liability showing how it was calculated

This is regarding calculating Income Tax on Income earned between 01-04-2008 & 31.03.2009 ie AY 2009-2010?
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One Reply to “This is regarding calculating Income Tax on Income earned between 01-04-2008 & 31.03.2009 ie AY 2009-2010?”

  1. Income under the head salaries = 4,29,957 (426420+3537)
    Income from Other sources = 2,47,364
    (Only Bank Interest as Dividend Income is exempted)
    Gross Total Income (A) = 6,77,321
    Deductions under Chap VI-A (B) = 1,05,052
    (80C+80D, 80C subject to max. limit of 1,00,000)
    Total Taxable Income (C=A-B) = 5,82,370

    Income Tax on Total Income (D) = 79,711
    Surcharge (E) = 0
    Education Cess (F=3% of D) = 2,391
    (2% for Education Cess and 1% for Higher Education cess)
    Total Tax payable (G=D+E+F) = 82,102

    If he has not paid any amount towards this tax till now as Advance Tax or Self Assessment tax, then he has to pay the Interest/Penaly under sections 234B & 234C as well.

    Interest under section 234B (H) = 3,284
    Interest under section 234C (I) = 3,038

    Hence total Self Assessment Tax to be paid before filing returns (J=G+H+I) = 88,424

    Calculation of Income Tax.
    ————————————-
    Taxable Income = 5,82,370

    Tax upto 1,50,000 = Nil
    Tax from 1,50,000 to 3,00,000 (A) = 10% of 1,50,000 = 15,000
    Tax from 3,00,000 to 5,00,000 (B) = 20% of 2,00,000 = 40,000
    Tax from 5,00,000 to 5,82,370 (C) = 30% of 82,370 = 24,711
    Net Tax (D=A+B+C) = 79,711

    Calculation of Interest u/s 234B
    ———————————————
    Interest u/s 234B is 1% per month of outstanding tax (including surcharge and cess) from Apr 2009 to July 2009
    Hence this is = 1% * 82,102 * 4 (months) = 3,284

    Calculation of Interest u/s 234C
    ———————————————
    Interest u/s 234C is calculated as below.

    30% of tax = 24,631
    The above should have been paid by 15-Sep-08
    The interest on this is 3% * 24,631 (I) = 739

    60% of tax = 49,261
    The above should have been paid by 15-Dec-08
    The interest on this is 3% * 49,261 (II) = 1,478

    100% of tax = 82,102
    The above should have been paid by 15-Mar-08
    The interest on this is 1% * 82,102 (III) = 821

    Hence Total interest to be paid u/s 234C (I+II+III) = 3,038





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