Tax Query (Plz help)

For AY 2009-10

total Income                    Rs. 286000

upto Rs. 160000               Nil

Balance Rs. 126000            Rs. 12600( Rs. 126000*10/100) i.e. 10% of Rs. 126000

Tax Liability shall be Rs. 12600. You hv to consider any saving made by that person also, in that case tax liability will be less as mentioned above.

regards,

ratan

Thanks for your reply,

Please consider the following contribution towards his savings

HRA - 45000

LIC premuim - 10074

PPF - 10000

Mutual Fund 5000

Rs. 12,600 Tax Liability is correct but also keep in mind that it will be increased by 3% Cess, therefore total tax liability will be 12,600+12,600*3% = 12,978.

Regards!!!!!

thnx for correction Mr.Dinesh. In continuation of the above Rectified Calculation will be as under.

Income from salary                                                         Rs. 286000

Less: Conveyance allowance (Rs. 800*12)               Rs. 9600

Less: House Rent Allowance:                                       Rs. 45000

Total Taxable Income:                                                      Rs. 231400

Less: Deduction U/s 80 C

LIC premuim -                                                                      Rs. 10074

PPF -                                                                                       Rs. 10000

Mutual Fund                                                                            Rs.5000

Taxable Income                                                                   Rs. 206326

Tax on above Income                                                         Rs. 206326-160000*10/100= 4633

add: Education Cess    3% of Rs. 4633                                                                                 139

Total Tax                                                                                   Rs. 4772.

regards,

ratan

If he is not paying any amount towards House Rent then Whole HRA will be taxable therefore computation will be as follow :

           Gross Total Income                      =   286000

Less: Ded. 80C(10074+10000+5000)  =  25074

           Net Total Income                            =   260926

          Net Total Income (Rounding-off)  =  260930

Therefore Tax Liability will be   =  (260930-160000)*10/100 = 10093

Total Tax Liability                      =    10093+10093*3/100  =  10396

Net Total Tax Liability (Rounding-off)                 =          10400  (NET TAX LIBALITY TO BE PAY)

***Please note that is he has paying House Rent then computation will be according to Sec 10(13A) of Income Tax Rules.

Regards!!!!!

In order to have Nil tax liablity please suggest the best investment options and the amount to be invested.

His HRA for FY 2009-2010 is 45000 ./- and residing in mumbai

Amount Invested to have Nil Tax Liability shall be Rs. 48000/. Best Option Will be Invested in Life Insurance., coz on maturity whole amount received shall be allowed as deduction u/s 10(10d).

regards,

ratan

whole HRA shall be exempted.

regards,

ratan

Dear Rina,

Plz correct one error that no education cess shall apply w.e.f. AY 2009-10.

Hence Tax liability shall be Rs. 4633, and in order to have tax liability nil total Investment shall be nearabt Rs. 46500. Is any mediclaim is taken by that person or any premium is deducted from his salary by the company.

regards,

ratan

I am attaching a file for your kind reference.

Regards,

Rina

wat Stands for PT.

Profession Tax

plz see the attachment.

ragrds,

ratan