Cost & Management Accountant
1257 Points
Posted on 26 December 2009
If he is not paying any amount towards House Rent then Whole HRA will be taxable therefore computation will be as follow :
Gross Total Income = 286000
Less: Ded. 80C(10074+10000+5000) = 25074
Net Total Income = 260926
Net Total Income (Rounding-off) = 260930
Therefore Tax Liability will be = (260930-160000)*10/100 = 10093
Total Tax Liability = 10093+10093*3/100 = 10396
Net Total Tax Liability (Rounding-off) = 10400 (NET TAX LIBALITY TO BE PAY)
***Please note that is he has paying House Rent then computation will be according to Sec 10(13A) of Income Tax Rules.
Regards!!!!!