Help me to calculate it liability for fy 2007-08

Tax queries 2254 views 8 replies

Ragini Shetty

n/a

27 Points Joined November 2011

Hello Friends,

I am struggling to correct one of the biggest mistake of my professional life. Actually I didn't file IT return for FY 2007-08 (AY 2008-09) and now I have received an Arrear Demand note from IT

dept to pay Rs 6387 for AY 2008-09 under section 143(1)

I need your help to calculate my tax liabilities for FY 2007-08.

Here is what I can see in my Form 16.

Employer 1 :- from 1-APr-2007 to 4-Jan-2008
(A) Salary as per provisions contained in section 17(1) = 162277.00
(B) Less : Allowance to the extent exempt u/s 10 = 6400
(C) Tax on Employment = 1600
(D) Employee Provident Fund - Gross Amount (80C) = 5271

Total Income = (A) - (B) - (C) - (D) = 149006.00

Tax on total income = 3901.00
Cess = 78 + 39
Tax Payable = 3901 + 78 + 39 = 4018
This amount (4018) was auto deducted from my salary from Employer-1.

Now I joined "Employer 2" on 7-Jan-2008
(A) Salary as per provisions coniained in section 17(1) = 135270.90
(B) Less: Allowance to the extent exempl under section 10 = 2245.16
(C) Tax on Employment = 700
(D) 80C = 5052

Total Income = (A) - (B) - (C) - (D) = 127270.00 [I can see that this amount has been rounded off in form 16.]

TaY on total income = 1727.00
Cess = 52
Tax Payable = 1727 + 52 = 1779
This amount (1779) was also auto deducted from my salary from Employer-2.

======================
Thus I paid total 4018 + 1779 = 5797 as Income tax + Cess for FY 2008-09.

Could I please request you to calculate how much tax I need to pay more (I have already paid Rs 5797) to file tax return for FY 2007-08?
Do I need to pay any interest also, on tax for FY 2007-08? If yes, how much.

Please look at it. I will be highly obliged to you for this favour.

Ragini Shetty

Replies (8)

Roopeshkumar L

Artical

142 Points Joined December 2010

Hi Ragini,

According to my calculations you need to pay approximately about Rs. 44,000/- as tax and interest for filing your returns for the F.Y 2007-08. (this has an interest of Rs 21,000/- included in it)

Regards,

Roopesh:)

Note: amounts given are approx and not exact figures.

Ragini Shetty

n/a

27 Points Joined November 2011

many thanks for your reply, Roopesh.

Will it be feasible for you to show me how you have calculated this amount?

Ragini

Roopeshkumar L

Artical

142 Points Joined December 2010

As per the above data your total income comes upto Rs. 2,76,280/- after all deductions.

On this amount the slab applicable is as uinder:

Upto Rs 145,000 - Nil

From 145,000 to 150,.000 - 10% (tax = 500)

from 150,000 to 250,000 - 20% (tax = 20,000)

Balance 26,280 taxable @ 30% (tax = 7,884)

as per the above total tax is Rs. 28,384 + 852(cess @ 3%) = 29,236

Rest is the interest u/s 234A, 234B and 234C

Hope this helps.

Regards,

Roopesh:)

Roopeshkumar L

Artical

142 Points Joined December 2010

Hi again,

To the above calculated we would add interest and deduct the TDS already deducted of Rs 5,797 (including cess)

Rgds,

Roopesh

Ragini Shetty

n/a

27 Points Joined November 2011

Many thanks to you, Roopesh. Now I understand Income tax calculation.

Could you please also provide how interest is being calculated at u/s 234A, 234B and 234C?

Ragini

Roopeshkumar L

Artical

142 Points Joined December 2010

234A: Interest on late filing of Return of Income

234B: Intt on default of Non payment/ short payment of Advance Tax

234C: Interest on the amount of advnce tax , the payment whereof has been deferred

For Calculations refer the sections and the shared files. All the above are charged at 1% per month or part of the month.

Hope this helps.

Rgds,

Roopesh:)

Ragini Shetty

n/a

27 Points Joined November 2011

Thanks Roopesh,

Many questions are coming in my mind :-(

(1) is this interest calculation based on simple interest or compound interest?

(2) Do I need to pay interest in all three -- 234A, 234B, 236C?

(3) Sorry. But I don't understand these accounts terminology. Could you please help me out by providing interest for each of the section 234A/B/C. I mean to ask what is the corresponding amount for each of section and their interest.

Thank you very much for your help, Roopesh.

Ragini