Tax computation

Today Buget,  No tax on Interest from Bank or Post office up to Rs.40,000/-

1. My income 800000+ Interest from Bank Rs.50,000

2. My income 800000+ INterest from Bank Rs.40,000/-

 

Please tell me Total Tax payable in above situations 

Replies (4)
I think it will effective from 1 April 2019.....This year calculation remain same
This will be applicable from 2019-20 Financial year

As per situation 1:
Total taxable income - 8,00,000+10,000 = 8,10,000
upto 2,50,000 Nil tax
2,50,000 to 5,00,000 @ 5% RS. 12,500
5,00,000 to 8,10,000 @ 20% RS. 62,000
Total RS. 74,500
cess @ 4% on 74,500 is RS. 2,980

Total tax payable is RS. 77,480

Situation 2:

Total taxable income - 8,00,000
upto 2,50,000 Nil tax
2,50,000 to 5,00,000 @ 5% RS. 12,500
5,00,000 to 8,00,000 @ 20% RS. 60,000
Total RS. 72,500

cess @ 4% on 72,500 is RS. 2,900
Total tax payable is RS 75,400
Here I want to clarify one thing that.....

Finance Minister in his  budget 2019 speech has proposed to raise the TDS threshold for interest earned on bank and post office deposits to Rs 40,000 from the current Rs 10,000.

The above is not to be confused with the existing deduction allowed under section 80TTA. 
As per this section, Individuals below age of 60 years can continue to claim deduction up to Rs 10,000 on interest earned from savings account, whether held with a bank (nationalised or co-operative) or post office in a single financial year.

And there is no change in existing slab rates...


Hence in situation 1 bank may deduct TDS on excess of 10000 @ 10% (i.e., 50k-40k)... Tax calculation is same as applicable to A.Y.18-19 and claim TDS as deducted and pay if any payable.....

however in situation 2 bank didn't deduct any TDS as limit doesn't exceed 40k... Remaining process is same...
Under situation 1 Bank will deduct TDS and deducted TDS to be subtracted from tax before cess and calculate the total tax payable. I miss this in while calculate.

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