Tax on salary

This query is : Resolved

Amit Nandy (Querist)
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22 May 2014 Please let me know what will be the tax liability if the total salary of Rs-850000/- per month (Ay2014-15)

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Amit Nandy

CA Sumit Arora

CA Sumit Arora (Expert)
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22 May 2014 Total tax liability will be 3272370/-. I have arrived at this figure has follows.

Tax liability for first Rs. 200000 Nil
Tax liability for(500000-200000)@10% 30000
Tax liability for(1000000-500000)@20% 100000
Tax liab for(10200000-1000000)@30% 2760000

Total 2890000
Surcharge@10% 289000

Total including surcharge 3179000
cess@3% 95370
Total tax liab after giving credit of Rs. 2000 3272370

Nikhil Kaushik

Nikhil Kaushik (Expert)
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22 May 2014 Dear Sumit,

Salary is only Rs 8.5 lakhs. how come salary reach Rs 32.72 lakhs?

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Nikhil Kaushik

Nikhil Kaushik (Expert)
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22 May 2014 plus rebate for 2000 is not available if the salary exceed Rs 5 lakhs.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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22 May 2014 plus surcharge is applicable only if income is above 1 cr....

Nikhil Kaushik

Nikhil Kaushik (Expert)
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22 May 2014 Amit,

Your Income is 8.5 lakhs. ( I am assuming that this income is after 80C)

Your tax liability 1.03 lakhs.

CA Sumit Arora

CA Sumit Arora (Expert)
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22 May 2014 Nikhil Sir he has mentioned salary per month.

Nikhil Kaushik

Nikhil Kaushik (Expert)
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22 May 2014 Sir even then rs 2000 wont be available

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CA Sumit Arora

CA Sumit Arora (Expert)
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22 May 2014 I apologize for the mistake i have done in the rebate part of Rs. 2000

Nikhil Kaushik

Nikhil Kaushik (Expert)
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23 May 2014 and I apologize for the month error.

plus the exact tax liability shall be (after providing for marginal relief) 3120900....

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CA Sumit Arora

CA Sumit Arora (Expert)
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23 May 2014 Thank you sir for correcting my mistake.

CMA Girish P

CMA Girish P (Expert)
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23 May 2014 Dear Amit. Please provide break up of your salary. like HRA , PF , LTA , TA , FA. So that we can suggest your Tax liability in a better way.

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