how to calculate tax on salary

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This query is : Resolved

pradnya (Querist)

28 July 2008 one of my friend has got Rs.90616 net salary from 1 employer on which tax is deducted Rs.1000/-

From Other employer rs.137144 tds deducted rs.2296/-

Tell me while preparing return he has to pay tax on rs.90616+137144 or just he will claim refund

CA CS CIMA Prakash Somani

CA CS CIMA Prakash Somani (Expert)

28 July 2008 Salary (90616+137144) 2,27,760

1. Less : Allowances Exempt
HRA
Conveyance
LTA
Food Coupans

2. Less : Profession Tax

3. Less : Deductions u/s 80C
PF
LIC
MF
Others

4. Deduction u/s 80D
Medical Insurance
Higher Insurance

Taxable Salary..................2,27,760

Income Tax.......................30,552
Cess................................917
Total Tax........................31,469
Tax Deducted......................3,296
Balance Tax to be Deducted.......28,173

CA. Vineet Grover

CA. Vineet Grover (Expert)

28 July 2008 Hi Pradnya,

The computation of tax on salary would be calculated takling into consideration salary income from both the employers. Further, the deduction shall be allowed only once allowable under the law. eg. Ded. u/s 80C shall be limited to Rs.100000/-.

So as per present case,
Salary = 227760

Tax on T.Income = 8448
Add: E.Cess 253
Total Tax 8701
Less: TDS 3296
Net Tax payable 5405

Calculated for A Y 08-09
Assumed no investment.

PLease ignore the calculation done by Prakash.
Rgds/
Vineet

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