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

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.

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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

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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

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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