|
READY
RECKONER
As
per the Finance Act, 2002, a surcharge at the rate of 5 % is to
be added to the income tax payable i.e after deducting the tax
rebate (section 88-A and 88-B) from the Income Tax due if the
taxable income is more than Rs.60000/-.
FORMULA
FOR COMPUTATION OF INCOME TAX:
|
Between
Rs.50000 and
Rs.600001
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Income
Tax = (Taxable Income x 0.10)-5000
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|
Rs.60000
and Rs.150000
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Income
Tax = ( Taxable Income x 0.20)-11000
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|
Rs.150001
and above
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Income
Tax = ( Taxable Income x 0.30)-26000
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Example:
Taxable Income
= Rs.100000
(After
deducting Standard deduction, deductions under 10(13-A) HRA,
80-G donations etc.)
Tax:
|
First
Rs.50000
|
NIL
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|
Next
Rs.10000 @ 10 %
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Rs.1000
|
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Balance
Rs.40000 @ 20%
|
Rs.8000
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|
Total
Tax
|
Rs.9000
|
|
Rebate:
20% of Rs.30000 (
GPF contribution Rs.24000 and purchase of NSC VIII issue
Rs.6000)
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Rs. 6000
|
|
Balance
Tax Payable
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Rs.3000
|
|
Add
surcharge @ 5 %
|
Rs.
150
|
|
Total
IT and surcharge
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Rs.3150
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Where the taxable
income is between Rs.50000 and Rs.60000
Slab Rate 10%
Surcharge : NIL
Taxable
Income
Rs.
|
IT
Rs.
|
Taxable
Income
Rs.
|
IT
Rs.
|
|
50000
|
Nil
|
52000
|
200
|
|
50100
|
10
|
52500
|
250
|
|
50200
|
20
|
53000
|
300
|
|
50300
|
30
|
53500
|
350
|
|
50400
|
40
|
54000
|
400
|
|
50500
|
50
|
54500
|
450
|
|
50600
|
60
|
55000
|
500
|
|
50700
|
70
|
56000
|
600
|
|
50800
|
80
|
57000
|
700
|
|
50900
|
90
|
58000
|
800
|
|
51000
|
100
|
59000
|
900
|
|
51500
|
150
|
60000
|
1000
|
Where
the taxable income is between Rs.60000 and Rs.150000
Slab Rate 20%
Surcharge : 5%
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NI
|
IT
|
SC
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Total
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NI
|
IT
|
SC
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Total
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60000
|
1000
|
Nil
|
1000
|
70000
|
3000
|
150
|
3150
|
|
60010
|
1002
|
50.10
|
1010
|
80000
|
5000
|
250
|
5250
|
|
60020
|
1004
|
50.20
|
1020
|
90000
|
7000
|
350
|
7350
|
|
60030
|
1006
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50.30
|
1030
|
100000
|
9000
|
450
|
9450
|
|
60040
|
1008
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50.40
|
1040
|
10
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2
|
0.10
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2.10
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|
60050
|
1010
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50.50
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1050
|
20
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4
|
0.20
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4.20
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60060
|
1012
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50.60
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1060
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30
|
6
|
0.30
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6.30
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|
60070
|
1014
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50.70
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1064.70
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40
|
8
|
0.40
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8.40
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|
60080
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1016
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50.80
|
1066.80
|
50
|
10
|
0.50
|
10.50
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|
60090
|
1018
|
50.90
|
1068.90
|
100
|
20
|
1.00
|
21
|
|
60100
|
1020
|
51
|
1071
|
500
|
100
|
5
|
105
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Where
the taxable income is between Rs.150000 and 500000
Slab Rate 30%
Surcharge 5 %
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NI
|
IT
|
SC
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TOTAL
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NI
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IT
|
SC
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TOTAL
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|
10
|
3
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0.15
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3.15
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400
|
120
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6.00
|
126
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40
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6
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0.30
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6.30
|
500
|
150
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7.50
|
157.50
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|
60
|
18
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0.90
|
18.90
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15000
|
19000
|
950
|
19950
|
|
80
|
24
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1.20
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25.20
|
200000
|
34000
|
1700
|
35700
|
|
100
|
30
|
1.50
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31.50
|
300000
|
64000
|
3200
|
67200
|
|
200
|
60
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3.00
|
63
|
400000
|
94000
|
4700
|
98700
|
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300
|
90
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4.50
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94.50
|
500000
|
124000
|
6200
|
130200
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1.
Calculate the total taxable income and income tax payable
for the salary for the year 2002-2003:-
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|
Rs.
|
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Total
Salary income for the year
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95000
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GPF
subscription
|
2400
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Profession
Tax paid
|
400
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Ans:
Total
salary income:
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95000
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Standard
deduction @ 331/3%
|
30000
|
|
|
65000
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Profession
Tax
|
400
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Taxable
Income
|
64600
|
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Income
Tax 10% of Rs.10000 + 20%of 4600
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1920
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Tax
Rebate (section 88) 20% of Rs.2400
|
480
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Tax
to be paid
|
1440
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Surcharge
@ 5%
|
72
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Therefore
Tax payable
1512
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a)
Since the income is not more than Rs.1.5 lakhs, Standard Deduction will be 33 1/3 % limited to Rs.30000
b) Rebate under section will be 10% between income of Rs.50000 and
Rs. 60000 and 20% between Rs. 60000 and Rs.1,50,000
To convert the tax payment as “Nil” the employee has to opt for savings by purchasing NSC VIII issue certificate or contributes to Public Provident Fund a sum of Rs.10,100/-
2. Calculate the total taxable income and the income tax payable for the financial year 2002-2003
a) Gross salary: Rs.215002; Subscription to GPF Rs.4000; LIC Rs.1180;
HBA Rs.700 pm
b) In occupation of rent free departmental quarters, the flat rate is Rs.300 p.m
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|
Rs.
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Ans:
Gross Salary
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215002
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Standard
Deduction
|
25000
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Taxable
income rounded off
|
195000
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Income
Tax:
For
the first Rs.50000
For
the next Rs.10000 at 10 %
For
the next Rs.90000 at 20 %
For
the balance Rs.45000 at 30 %
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Nil
1000
18000
13500
32500
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|
Tax
Rebate: Under section 88
GPF
subscription:
4000 x 12 =Rs.48000
LIC
=Rs. 1180
HBA
700 x 12
=Rs. 8400
Rs.61860
Tax rebate at 15
% of Rs.61860
|
9279
|
|
Net
IT
|
23221
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Surcharge
@ 5%
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1161
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Total
IT and surcharge payable
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24382
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If the employees makes an investment of Rs.9000/- in Small savings scrip NSC VIII issue and Rs.30000/- infrastructure bonds tax liability will be reduced to Rs. 17660/-
3.
Calculate the taxable income and income tax payable for
the Financial year 2002-2003
Gross
salary Rs.151000 (salary Rs.96000 DA Rs.49600); GPF Rs.2500 pm;
HBA Rs.800; NSC VIII issue Rs.3000; LIC premium Rs.1680;
donation to PM’s Relief Fund Rs.1000;
The
Officer is in occupation of a rented house paying a monthly rent
of Rs.3000. The Officer is receiving HRA Rs.2400 CCA:300
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|
Rs.
|
|
ANS:
Gross Income
|
151600
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Standard
Deduction
|
25000
126600
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Deduct
contribution to Prime Minister’s National Relef
Fund(80G)
|
1000
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