I'm facing some difficulties while interpretating the definition "Marginal Relief" , agregation of agricultural income with non agricultural income and calculating tax thereon.i'd like you to, please ,help me in solving the following case.
Case:
" 1)Assessee:Mrs X ( Age:35Years), Resident
2)Non Agricultural Income(taxable at normal incometax rates): Rs.1030000 only.
3)Agricultural Income :Rs.6000 only.
4)Assessment Year : 2009-2010
5)No TDS or No Advance Tax in this case.
6)Calculate Income Tax payable for A.Y.2009-2010"
| (I) Option:
My workings are as follows:
|
||
| Computation of Tax Liability for A.Y.2009-2010 | ||
| Particulars | Amount Rs | Amount Rs |
| (1) Income Tax on Rs.1036000(i.e.Rs103000+ |
212800 | |
| (2) Income Tax on Rs 186000(i.e.Rs.180000+6000Rs) | 600 | |
| (3)IncomeTax [(1)minus(2)] | 212200 | |
| (4) Surcharge @ 10 % of Rs. 212200 | 21220 | |
| (5) Icome Tax & Surcharge(i.e.(3) plus (4) | 233420 | |
| (6) Income Tax on Rs.1000000 | 202000 | |
| (7) Difference in Tax[i.e.(5) minus (6) | 31420 | |
| (8) The amount by which the total income exceeds Rs. 10 lacs | 30000 | |
| (i.e.Rs.1030000 minus Rs.1000000) |
||
| (9) Marginal Relief [i.e.((7) minus (8)] {(7) shall not exceed (8)} | 1420 | |
| (10) Income Tax & Surcharge[ i.e.(5) minus (9)] | 232000 | |
| (11) Education Cess @ 2% of Rs.232000 | 4640 | |
| 236640 | ||
| (12) Secondary & Higher Education Cess @ 1% of Rs.232000 | 2320 | |
| (13) Net Tax Payable | 238960 | |
| (II) Option | ||
| However my "Taxbase Software" calculates "Net Tax Payable" | 240196 | |
I wanna know how The Tax Base calculted the net tax payable [i.e. option (II)] and which option is correct
Yours Sincerely
P.M.Rane
Mob No.9975021835
Email:rpmr_28 @ yahoo.co.in or
rpmr @ icai.org
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