MARGINAL RELIEF

Suresh (Senior Tax Consultant) (37 Points)

24 January 2011

DEAR ALL,

PLEASE EXPLAIN ME CALULATIONS FOR MARGINAL RELIEF FOR AY0910

MALE ASSESSEE

A.Y. 2009-10

INCOME -1015030/-

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2 Replies

Pankaj Arora (Learner) (3134 Points)
Replied 24 January 2011

Tax will be before margin relief : - 232265.00

After margin relief : - 226180.00

Difference : - 6085.00 benefit of margin relief

siri (CFO) (174 Points)
Replied 26 January 2011

u can calculate tax on

1st rs. 10,15,030 tax liability is rs. 2,30,459.90 bfore ecess @ 2% & shec @ 1%.

2)calculate tax on rs.10,00,000 it is rs. 2,05,000 & add excess of ur income over 10,00,000 i.e. 15,030.00

so total tax liability is rs. 2,05,000+15,030=2,20,030.00

with that ur tax liability is rs. 2,20,030 bfore ecess @ 2% & shecess @ 1%.

ur tax saving is rs. 10,429.90/- (2,30,459.90-2,20,030).

dis is the calculation in case of a marginal relief.

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