Tax Liability with Tax Rebate 87
Tax Liability with Tax Rebate 87
If the Net income is
below Rs.5,00,000, Rebate u/s 87 will be
Rs.12,500 or Tax
whichever is less
Ex.3: Margam Publication
1.Shri Subramanian, a
salaries employee, provides the following details of his income for the assessment
year 2025-26.Determinehis tax liability
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|
Rs. |
|
Basic
Salary Dearness
Allowance(forming part) Special
Allowance Conveyance
Allowance Interest
on debenture of a Ltd. Company Interest
on Co-operative debentures Dividend
from a Cooperative societies Interest
on Govt. Societies Income
from house property(Computed) |
1,00,000 7,000 8,000 5,000 10,000 6,000 4,000 5,000 3,00,000 |
Solution:
Computation of Net Income and Tax
Liability for the A.Y.2025-26
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1.INCOME FROM SALARY Basic
Salary DA Special
Allowance Conveyance
Allowances |
1,00,000 7,000 8,000 5,000 |
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|
Gross Salary Less:
Standard Deduction |
1,20,000 50,000 |
70,000 |
|
2.Income From House Property |
|
3,00,000 |
|
3.Income From Other Sources Interest
on Debentures of a Ltd., Company Interest
on Co-operative Debentures Dividend
from cooperative societies Interest
govt securities |
10,000 6,000 4,000 5,000 |
25,000 |
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GROSS TOTAL INCOME Less: Deduction u/s 80 C to 80 U |
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3,95,000 Nil |
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Net Income/Taxable Income |
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3,95,000 |
Working note: Tax on Income
For the first 2,
50,000= Nil
For balance- 3, 95,000-2,
50,000= 1, 45,000 X5=7,250
Tax Liability for A.Y 2025-2026
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|
|
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Tax
on Net Income |
7,250 |
|
Add:
Health & Education Cess @ 4% |
290 |
|
|
7,540 |
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Less:
Tax Rebate U/s 87 |
7,540 |
|
Tax Liability |
NIL |
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