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

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  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