Tax calculation for male senior citizen

 

 

Mr. X  (Age 64)is a senior citizen having pension income Rs.788887/- and 80C investment is only Rs.100000/-

Tax calculated by TRP

Pension                                : 7,88,887/-

Deduction VI-    100000/-

Total Income = 6, 88,997/-

Tax on above                                     Rs. 62778/-

Education Cees                                                 Rs. 1883/-

Total Tax Payable                             Rs. 64661/-

 

Tax Calculated by Mr. X

Pension                                : 7,88,887/-

Deduction VI-    100000/-

Deduct Rs. 250000/- (threshold limit)

Total Income = 438897/-

Tax Rs. 43890+1317=45207

Which calculation is correct?

 

Replies (4)

Both the calculations are wrong.  After taking 80C deduction the Total taxable income is going above Rs 500000.  So 5lacs shud be deducted from the total income & tax @ 20% shud be calculated on the balance.  Given below is the calculations:

 

788887  
-100000  
688890  
37778      (688890-500000)*.20
38911 Tax Payable

 

No tax due is  Rs. 25000+37778=.Rs.62778 Ofcourse add cess.

 

 

Tax due is ₹.62,777.plus cess.

 

Pension Income  - 7,88,887

(-) Deduction u/c VI A - 1,00,000

Total Income  - 6,88,887

Tax on Above 

First 2,50,000 - NIL

(5,00,000 - 2,50,000)*10%  - 25,000

(6,88,887 - 5,00,000)*20%  - 37,777

                                                    62,777

Add: edu cess & SHEC           +1883

  Tax Payable                             64,660

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