For a resident individual salaried person with net taxable income say Rs. 732000.00 (after all deductions), should one calculate tax liability this way (income is only from salary):
(Net taxable income: Rs732000=Rs250000+Rs482000)
for income upto Rs250000: Income tax to be paid: Rs. 0
for income from next Rs 250001 upto Rs500000: Income tax to be paid: @ 5%: Rs. 482000*5%=Rs24100
Add: Cess @ 3% on tax: Rs24100*3%=Rs723
Net tax liability: Rs 24100+Rs723=Rs24823
Rounded off: Rs 24820
Please indicate if the calculation is correct or not. If not, what should be the correct amount.
CAclubindia
