shwetha (CWA learner) (447 Points)
04 June 2012Hi,
Following is the calculating tax liability.
Pls tell me how 1,46,000 is came. and also what is TDS (Tax deduct at source) means........................
Income from profession 6,78,425
Income from other heads 4,31,530
______________
Total income 11,09,955 or 11,09,960
Total income * 0.3 (-) 1,46,000 = 1,86,988
Add:- E.C @ 2% 3,739.76
Add:- SHE @ 1% 1,869.88
__________________
1,92,597.64 or 1,92,600
Less:- Tax deducte at source 1,95,000
Refund of tax _________________________
2400
Ankit
(Articles)
(390 Points)
Replied 04 June 2012
Calculation of 146000 is swrong the method is used for calculation of tax is also wrong that should be as below :-
(1109960-800000)30% + 94000 ok do u get the same ????
Karthik
(Practice - Advisory)
(83 Points)
Replied 04 June 2012
The calculation is correct. They have calculated tax as follows
to derive @ 146000 follow these steps
30% tax rate on total income Rs 1109955 =332988
Tax slabs for AY 2011-12 are upto 160000 nil that means 160000*30%=48000
Income between 160000 and 500000 wil be taxed @ 10% but income taxed at 30% now reverse 20% =64000
Income between 500000 and 800000 wil be taxed @ 20% but income taxed at 30% now reverse 10%= 30000
total comes to 146000
Ankit
(Articles)
(390 Points)
Replied 04 June 2012
i have applied this AY so that i asked first for the assessment year ....
if u r applying Ay 2011-12 then its absolutely correct ..
Karthik
(Practice - Advisory)
(83 Points)
Replied 04 June 2012
You can use any method to calculate tax amount- i think there is no standard method to be used, you can any method, finally you have to arrive @ exact amount of tax. As far as presentation of tax calculation in exams or in any case are concerned following way of computation is acceptable
Upto 1,60,000 = 0%=0
160000-500000=10% =34000
500000- 800000=20% =60000
Above 800000 = 30%=-----------
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