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?
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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