h Web viewrent received from m/s prem nath associates. 60000. interest from saving bank accounts. 9590. interest on fdr with state bank of india. 1655

How to Calculate Income Tax

For any tax paying individual, to have a working knowledge of how income tax is calculated can only make life simpler. It not only helps you assess the amount of tax you have to pay in a financial year but also gives you a clearer idea on how to save tax.

Income Tax is tax levied on the income of an individual by the Government. Computing your Income Tax for a year might seem like a complex process but you will see that it is easy, if you are aware of the income tax slabs of that particular year and know the mathematical calculation.

Knowing Taxation amount as per the Income Tax Slabs

The first step to understand the workings of Income Tax in India is to be aware of the taxation slabs released each financial year by the Indian Government. The taxation slabs for the financial year 2016-17 for General tax payers and Women: –

Income Tax Slab Income Slab (Rs.) Income Tax Rate0 0 to 2,50,000 NILI 2,50,001-5,00,000 10%II 5,00,001-10,00,000 20%III 10,00,001 and above 30%

If you fall in Slab I, tax will be deducted on the amount that exceeds Rs. 2,50,001/- . Similarly, tax for Slab II and Slab III will be calculated for the amount that exceeds Rs. 5,00,001/- and Rs. 10,00,001/- respectively. The same principle also applies to the tax slabs for senior citizens (Aged 60 years but less than 80 years):-

Income Tax Slab Income Slab (Rs.) Income Tax Rate0 0 to 3,00,000 NILI 3,00,001 to 5,00,000 10%II 5,00,001 to 10,00,000 20%III 10,00,000 and above 30%

India Income tax slabs 2016-2017 for very senior citizens (Aged 80 and above):-

Income Tax Slab Income Slab (Rs.) Income Tax Rate0 0 to 5,00,000 NILI 5,00,001 to 10,00,000 20%II 10,00,000 and above 30%

Deductions available for saving tax

To opt for saving the maximum amount of tax, examine the deductions defined under different sections of the Income Tax Act, 1961.

The available deductions are:–

Investment under Section 80

This section includes: –

Mediclaim insurance premium (u/s 80D) Donations with 100% benefit (u/s 80G) Interest repayment for education loans (u/s 80E) New Pension Scheme for a maximum of 10% of the basic salary (u/s 80CCD) And Rajiv Gandhi Equity Savings Scheme (u/s 80CCG).

The Investment limit for the deduction under Section 80C of the Income-Tax Act, 1961 was raised from Rs 1 lakh to Rs 1.5 lakh as per the budget 20014-15. This will result in a maximum saving of Rs. 15,450 to investors in the 30% tax bracket. The most common investments fall under this section: –

o Life Insurance policies o Employees Provident Fund/Public Provident Fundo National Savings Certificates or Interest accrued on old NSCso ULIPs (Unit Linked Insurance Plans)o Repayment of home loan for principal amount only.o Pension Funds u/s 80CCCo Tax saver Mutual Funds – ELSS: Equity Linked Savings Schemeo Tuition fees of children’s education.

Housing Rent Allowance u/s 10(13A).This is an allowance you get as a company employee for paying house rent. Deduction available on House Rent Allowance is an amount which is the least of the following parameters:–

Actual HRA received

OR

Actual rent paid by you minus 10% of your basic salary and other allowances (excluding HRA)

OR

50% of your basic salary

In cases where the last two parameters determine the deduction amount, and turns out to be less than the HRA paid by your company, the excess amount is considered as a part of your taxable income.

Home Loan Benefit u/s 24. This gives you deduction for the interest that you pay on your home loan and the maximum deduction limit has been raised (as per 2016-2017) to Rs. Rs.2,00,000 for a self-occupied property. For a property that is not self-occupied, there is no upper cap on the deduction limit.

Calculating your Taxable Income and Income Tax

In order to do the calculation, it is imperative to understand how income tax is deducted. If your income falls within a certain slab only, say Slab I (as per the tax slabs mentioned above), then the calculation is simpler. But if your salary falls in more than one range, the income tax is the sum of the tax calculated from each slab as per the designated tax rate of the said financial year.

In other words,

Income tax for income in Slab II = 10% of Slab I + 20% of slab II

Income tax for income in Slab III = 10% of Slab I + 20% of Slab II + 30% of Slab III

Here’s an example* of the income tax calculation of a person earning Rs.10 lakhs, and a comparison of how he will fare with this year’s budget rules as opposed to those of last year’s –

As shown in the examples above, tax calculation is not as complex an affair as it is made out to be. You just need to be aware of the tax slabs for the financial year in question, the deductions available and how taxable income is determined. Once you have clarity on these three aspects, calculating your income tax becomes very simple.

EXAMPLES RELATING TO CALCULATION OF INCOME TAX RELATING TO FINANCIAL YEAR 2014-15 (ASSESSMENT YEAR 2015-16):-

Illustration:

Mr. X, aged 45 years, submitted the details of his income and investment for financial year 2014-15, as under:

Particulars Amount(In Rupees)

Income from salary 300000/=Interest from fixed deposits with bank 15000/=Interest from personal loans 5000/=Interest from Public Provident Fund Account (PPF) 25000/=Deposit in Public Provident Fund Account (PPF) 150000/=

Calculate his income tax liability for financial year 2014-15 (Assessment Year 2015-16).

Solution:

COMPUTATION OF TAXABLE INCOMEPARTICULARS AMOUNT(In

Rupees)AMOUNT(In Rupees)

Income from salary 300000/=Income from other sourcesInterest from fixed deposits with bank 15000/=Interest from saving bank account 5000/=Interest from Public Provident Fund Account(Rs.25000/=)

NIL 20000/=

Gross Total Income 320000/=Less: Deductions under Chapter VI-ADeposit in Public Provident Fund Account 100000/=Net Taxable Income 220000/=Tax Payable NIL

Note:

1. Mr. X is 45 years old and his income tax exemption limit for financial year 2014-15 is Rs.2,50,000/=. In above example his net taxable income is Rs.2,20,000/=. Therefore, he is not liable to pay any income tax.

2. Interest on Public Provident Fund Account is not taxable.

Illustration:

Mrs. X, aged 42 years, submitted the details of her income and investment for financial year 2014-15, as under:


Income from business 650000/=Interest from fixed deposits with bank 35000/=Interest from security deposits 15000/=Interest from Public Provident Fund Account (PPF) 30000/=Deposit in Public Provident Fund Account (PPF) 50000/=

Calculate her income tax liability for financial year 2014-15 (Assessment Year 2015-16).

Solution:



Income from Business 650000/=Income from other sourcesInterest from fixed deposits with bank 35000/=Interest from security deposits 15000/=Interest from Public Provident Fund Account(Rs.30000/=)

NIL 50000/=

Gross Total Income 600000/=Less: Deductions under Chapter VI-AU/S 80C:Deposit in Public Provident Fund Account 50000/=Net Taxable Income 550000/=Tax Payable 35000/=Education Cess @ 2% 700/=Secondary & Higher Education Cess @ 1% 350/=

Total Tax Liability 36050/=

Note:

Mrs. X is 42 years old and her basic income tax exemption limit for financial year 2014-15 is Rs.250000/=. In above example her net taxable income is Rs.5,50,000/=. Therefore, she is liable to pay income tax. There is no separate income tax slab for a woman tax payer.

Interest on Public Provident Fund Account is not taxable. Income Tax Rate from Rs.250000/= to Rs.500000/= is 10% Income tax rate from Rs.500001 to Rs.10,00,000/= is 20%

Illustration:

Mrs. Y, aged 63 years, submitted the details of her income and investment for financial year 2014-15, as under:


Rental Income from house property 850000/=House tax paid 50000/=Interest from fixed deposits with bank 250000/=Interest from saving bank account 10000/=Interest from Public Provident Fund Account (PPF) 120000/=Deposit in Public Provident Fund Account (PPF) 60000/=Life Insurance Premium Paid 20000/=Medical Insurance Premium paid 10000/=

Calculate her income tax liability for financial year 2014-15 (Assessment Year 2015-16).

Solution:



Income from House PropertyRent received 850000/=Less: House Tax paid 50000/=Net Annual Value 800000/=Less: Standard Deduction for Repairs @ 30% 240000/= 560000/=Net income from House PropertyIncome from other sourcesInterest from fixed deposits with bank 250000/=Interest from saving bank account 20000/=Interest from Public Provident Fund Account(Rs.120000/=)

NIL 270000/=

Gross Total Income 830000/=Less: Deductions under Chapter VI-ADeposit in Public Provident Fund Account 60000/=Life insurance Premium paid 20000/=Medical Insurance Premium paid 10000/=Interest from saving bank accounts 10000/= 100000/=Net Taxable Income 730000/=Tax Payable 66000/=Education Cess @ 2% 1320/=

Secondary & Higher Education Cess @ 1% 660/=Total Tax Liability 67980/=

Note:

Mrs. X is 63 years old. Therefore, her income tax exemption limit for financial year 2014-15 is Rs.3,00,000/=. In above example her net taxable income is Rs.7,30,000/=. Therefore, she is liable to pay income tax.

Interest on Public Provident Fund Account is not taxable. Maximum amount of Medical insurance premium is allowed Rs.15000/=. In case of Senior Citizen who is 60 years or

more, maximum amount is allowed Rs.20000/= under section 80D. Interest from saving account is exempted up to Rs.10000/= u/s 80TTA Income Tax for Senior Citizen for financial year 2014-15 shall be calculated as under:

Income tax slabs Taxable Amount(In Rupees)

Rate Tax Amount(In Rupees)

Up to Rs.300000/= 300000/= NILRs.300001 to Rs.500000/= 200000/= 10% 20000/=Rs. 500001 to Rs.730000/= 230000/= 20% 46000/=

Total 730000/= 66000/=

Illustration:

Following are the details of income and investments for financial year 2014-15 (Assessment Year 2015-16):-


Income from house property (Net Annual Value) 300000/=Income from Business 900000/=Income from other sources (Taxable at normal rate) 100000/=Deductions Under Chapter VI-A 100000/=

Calculate the income tax liability for financial year 2014-15 (Assessment Year 2015-16) if the tax payer is:-

a) 45 years old male

b) 45 years old female

c) 61 years old male

d) 61 years old female

e) 81 years old male

f) 81 years old female

Solution:

During financial year 2014-15 following are the exemption limits for individual tax payers:

Type of Tax Payer Exemption Limit

(In Rupees)

Male below 60 years 250000/=Female below 60 years 250000/=Male/Female between 60 and 80 years 300000/=Male/Female 80 and above 500000/

So keeping in view above table, we shall calculate the tax liability of different types of tax payers as under:

COMPUTATION OF TAXABLE INCOME Male below 60

yearsFemale below 60 years

Male/Female 60 yrs and above but below 80 yrs.

Male/Female 80 years and above

PARTICULARS AMOUNT(In Rupees)

AMOUNT(In Rupees)

AMOUNT(In Rupees)

AMOUNT(In Rupees)

Rental Income from House Property 300000 300000 300000 300000Income from Business 900000 900000 900000 900000Income from Other Sources 100000 100000 100000 100000Gross Total Income 1300000 1300000 1300000 1300000Total Deductions under Chapter VI-A 100000 100000 100000 100000Net Taxable Income 1200000 1200000 1200000 1200000Tax Payable 185000 185000 160000 160000Education Cess @ 2% 3700 3700 3200 3200Secondary & Higher Education Cess @ 1% 1850 1850 1600 1600Total Tax Liability 190550 190550 185400 164800

Following are the income tax slabs for individuals for financial year 2014-15:

Income tax slabs RateUp to Rs.250000/= nilFrom Rs.250001/= to Rs.500000/= 10%From Rs.500001/= to Rs.1000000/= 20%Rs.1000001/= onwards 30%

Total

Illustration:-

Mr. X had the following income during financial year 2014-15. He is 50 years old.Calculate the tax liability of Mr.X?

PARTICULARS AMOUNT(IN RUPEES)

SALARY FROM M/S XYZ LIMITED 2000000INTEREST ON FDR FROM CITI BANK 60000INTEREST FROM SAVING BANK A/C 5000INTEREST ON INFRA BONDS 3000INTEREST ON PPF ACCOUNT 30000DIVIDEND RECD FROM MUTUAL FUNDS 20000

HIS EMPLOYER DEDUCTED HIS CONTRIBUTION TO P.F. 70000HE DEPOSITED IN PUBLIC PROVIDENT FUND ACCOUNT 80000HE MADE THE REPAYMENT OF HOUSE LOAN 300000

HE PAID INTEREST ON LOAN FOR RESIDENTIAL HOUSE PROPERTY 110000

HIS EMPLOYER DEDUCTED TDS ON SALARY 420000TDS DEDUCTED BY BANK ON INTREST ON FDR 6000

Solution:-

NAME MR. XSTATUS INDIVIDUALASS. YEAR 2015-16PAN AAAAS1111KDATE OF BIRTH 12.12.1980

COMPUTATION OF INCOME

INCOME FROM SALARY SALARY RECEIVED (AS PER FORM – 16) – XYZ LTD. 2000000

INCOME FROM HOUSE PROPERTYINTEREST ON LOAN FOR RESIDENTIAL HOUSE PROPERTY -110000

INCOME FROM OTHER SOURCESINTEREST ON FDR – CITI BANK 60000INTEREST FROM SAVING BANK A/C 5000INTEREST ON INFRA BONDS 3000INTEREST ON PPF (EXEMPT) 30000/= 0DIVIDEND RECD (EXEMPT) 20000/= 0 68000

GROSS TOTAL INCOME 1958000

LESS : DEDUCTIONS (CHAPTER VI-A)

CONTRIBUTION TO P.F. 70000PPF 80000REPAYMENT OF HOUSE LOAN 300000GROSS DEDUCTIONS 450000 DEDUCTIONS RESTRICTED TO 150000Less: Interest on Saving Bank Account 5000 Total deduction under Chapter VI-A 155000NET TAXABLE INCOME 1803000TAX ON ABOVE 365900ADD: EC + S&HEC @ 3% 10977TOTAL TAX PAYABLE 376877

LESS: TAX PAIDTDS ON SALARY 420000TDS ON INTREST ON FDR 6000 426000

NET REFUND DUE 49123

CALCULATION OF INCOME TAXPARTICULARS INCOME TAX TAX

RATEUP TO 250000 250000 0 0FROM 250001 TO 500000 250000 10% 25000FROM 500001 TO 1000000 500000 20% 100000800001 ONWARDS 803000 30% 240900

TOTAL 1803000 365900

EXAMPLES RELATING TO CALCULATION OF INCOME TAX RELATING TO FINANCIAL YEAR 2015-16 (ASSESSMENT YEAR 2016-17)

Illustration:

Mr. AJAY KUMAR ARORA HAD THE FOLLOWING DETAILS DURING THE FINANCIAL YEAR 2015-16 (ASSESSMENT YEAR 2016-17)

PARTICULARS AMOUNT (RS.) PROFIT FROM M/S R.S.ENTERPRISES 38162INTEREST FROM M/S RAMA BUILDERS 250800INTEREST FROM SAVING BANK ACCOUNT 23783INTEREST ON FDR WITH STATE BANK OF INDIA 64395INTEREST ON FDR WITH SOUTH INDIAN BANK 30080INTEREST ON FDR WITH IDBI BANK 81067INTERET ON APPLICATION MONEY 3700DIVIDEND FROM UTI 10597INTEREST FROM TAX FREE BONDS 58271INTREST FROM PPF ACCOUNT 68722LIFE INSURANCE PREMIUM PAID 5608AMOUNT DEPOSITED IN PPF A/C 150000MEDICAL INSURANCE PREMIUM PAID 11388TDS DEDUCTION:-M/S RAMA BUILDERS 25080IDBI BANK 8107STATE BANK OF INDIA 6441SOUTH INDIAN BANK 3008PERSONAL DETAILS OF MR.AJAY KUMAR ARORAPAN AABBC5252XDATE OF BIRTH 28.10.1954WARD NO. 70(1) DELHISTATUS INDIVIDUAL

PREPARE THE COMPUTATION OF INCOME?

Solution:

NAME AJAY KUMAR ARORA

STATUS INDIVIDUALASS. YEAR 2016-17PAN AABBC5252XDATE OF BIRTH 28.10.1954WARD NO. 70(1) DELHI


INCOME FROM BUSINESS/PROFESSION PROFIT FROM M/S R.S ENTERPRISES 38162(PROP. MR. AJAY KUMAR ARORA)

INCOME FROM OTHER SOURCESINTEREST FROM RAMA BUILDERS 250800INTEREST FROM SAVING BANK A/C 23783INTEREST ON FDR FROM SBI 64395INTEREST ON FDR FROM SIB 30080INTEREST ON FDR FROM IDBI 81067INTEREST ON APPLICATION MONEY 3700

DIVIDEND FROM UTI (EXEMPT) 10597 0INTEREST FROM TAX FREE BONDS 58271INTEREST ON PPF A/C (EXEMPT) 68272 0 453825


LESS : DEDUCTIONS U/S 80LIC PREMIUM 5608PPF 150000RESTRICTED TO 150000 150000MEDICLAIM INSURANCE PREIUM 11388INTEREST ON S/B ACCOUNT 10000 21388

NET TAXABLE INCOME 320599R/O 320600TAX ON ABOVE 2060LESS REBATE U/S 87-A 2000NET TAX PAYABLE 60ADD:EC AND S&HEC @3% 2NET TAX PAYABLE 62LESS: TAX PAIDTDS ON INTEREST BY M/S RAMA BUILDERS 25080TDS ON FDR – IDBI BANK 8107TDS ON FDR – STATE BANK OF INDIA 6441TDS ON FDR – SOUTH INDIAN BANK 3008 42636

NET REFUND DUE 42574

NOTEFORM NO. ITR-4 SHALL BE USED TO SUBMIT THE RETURN FOR ABOVE TRANSACTIONS.

Illustration

Mrs. SUDHA GUPTA HAD THE FOLLOWING DETAILS DURING THE FINANCIAL YEAR 2015-16:-

PARTICULARS AMOUNT(RS.)

SALARY RECEIVED FROM M/S A.K.Builders (P) LTD. 192000INTEREST FROM SAVING BANK ACCOUNT 6027INTEREST ON FDR WITH STATE BANK OF INDIA 63766INTEREST ON FDR WITH IDBI BANK 278731INTERET ON KISAN VIKAS PATRA 10933INTEREST FROM INCOME TAX REFUND 461INTREST FROMM PPF ACCOUNT 67442LIFE INSURANCE PREMIUM PAID 5456DEDUCTION OF TDSIDBI BANK 27874STATE BANK OF INDIA 6377PERSONAL DETAILS OF MRS SUDHA GUPTAPAN AADFG1452TDATE OF BIRTH 07.07.1956WARD NO. 70(1) DELHISTATUS STATUS

Solution:


NAME MRS. SUDHA GUPTA

STATUS INDIVIDUAL ASS. YEAR 2016-17 PAN AADFG1452T DATE OF BIRTH 07.07.1956


INCOME FROM SALARY SALARY FROM M/S A.K. PVT. LTD. 192000 INCOME FROM OTHER SOURCES INTEREST FROM FDR (SBI) 63766 INTEREST FROM FDR (IDBI) 278731 INTEREST FROM KISAN VIKAS PATRA 10933 INTEREST FROM INCOME TAX REFUND 461 INTEREST FROM SAVING BANK A/C 6027 INTEREST ON PPF A/C (EXEMPT) 67442 0 359918 GROSS TOTAL INCOME 551918 LESS : DEDUCTIONS U/S 80

LIC PREMIUM 5456 PPF 60000 INTEREST FROM SAVING BANK A/C 6027 71483 NET TAXABLE INCOME 480435TAX ON ABOVE 23044 250000 0 0 230435 10% 23044

TOTAL 480435 23044 LESS: REBATE U/S 87A 2000NET TAX PAYABLE 21044ADD: EC + S&HEC @ 3% 631TOTAL TAX PAYABLE 21675 LESS: TAX PAID TDS ON FDR – IDBI 27874 TDS ON FDR – SBI 6377 34251 REFUND DUE 12576

NOTEFORM NO. ITR-2A SHALL BE USED TO SUBMIT THE RETURN FOR ABOVE TRANSACTIONS.

Illustration:

RAJ KUMAR HUF HAD THE FOLLOWING DETAILS DURING THE FINANCIAL YEAR 2015-16:-PARTICULARS AMOUNT

(RS.)INTEREST RECEIVED FROM SAVING BANK ACCOUNT 12122INTEREST ON FDR WITH STATE BANK OF INDIA 139197INTEREST ON FDR WITH IDBI BANK 372526INTERET ON FDR WITH SOUTH INDIAN BANK 103369

TDS DEDUCTION:- IDBI BANK 37253STATE BANK OF INDIA 13923SOUTH INDIAN BANK 10337

PERSONAL DETAILS OF RAJ KUMAR HUF PAN AAHDS1111PDATE OF INCORPORATION 04.06.1979WARD NO. 70(1) DELHISTATUS HUF

Solution:

NAME RAJ KUMAR HUF

STATUS HUFASS. YEAR 2016-17PAN AAHDS1111PDATE OF INCORPORATION 04.06.1979


INCOME FROM OTHER SOURCESINTEREST FROM FDR (SBI) 139197INTEREST FROM FDR (SIB) 103369INTEREST FROM FDR (IDBI) 372526INTEREST FROM SAVING BANK A/C 12122 627214


LESS: DEDUCTIONS U/S 80TTAINTEREST ON SAVING BANK A/C 10000

NET TAXABLE INCOME 617214ROUNDED OFF 617210

TAX ON ABOVE 48442250000 0 0250000 10% 25000 117210 20% 23442

TOTAL 617210 48442

ADD: EC + S&HEC @ 3% 1453TOTAL TAX PAYABLE 49895

LESS: TAX PAID TDS ON FDR – IDBI 37253TDS ON FDR – SBI 13923TDS ON FDR – SIB 10337 61513

REFUND DUE 11618


Illustration:

MR.MOHIT HAS THE FOLLOWING DETAILS – DURING FINANCIAL YEAR 2015-16

PARTICULARS AMOUNT (RS.)

SALARY RECEIVED FROM M/S XYZ COMPANY LTD. 600000(AS PER FORM 16) RENT RECEIVED FROM HOUSE PROPERTY 100000MUNICIPAL TAX PAID 30000INTEREST ON LOAN FOR SELF OCCUPIED RESIDENTIAL HOUSE IN DELHI MR. X LIVES IN MUMBAI. HOUSE IS NOT RENTED DURING F.Y.2015-16 31000SHORT TERM CAPITAL GAIN ON SHARES SUBJECT TO – SECURITY TRANSACTION TAX 5000INTEREST ON TAXABLE BONDS 12500INTEREST FROM POST OFFICE – MONTHLY INCOME SCHEME 10000DIVDEND FROM MUTUAL FUNDS 4000DIVDEND FROM SHARES – TAX FREE 5000SALES OF SHARES SUBJECT TO SECURITY TRANSACTION TAX 200000 LIFE INSURANCE PREMIUM PAID 10000AMOUNT DEPOSITED IN PUBLIC PROVIDENT FUND A/C 100000REPAYMENT OF HOUSING LOAN 260000TUTION FEES PAID OF CHILDREN 36000CONTRIBUTION IN NEW PENSION SCHEME 70000MEDICAL INSURANCE PREMIUM PAID FOR SELF, WIFE AND CHILDREN 21000MEDICAL INSURANCE PREMIUM PAID FOR PARENTS WHO ARE BOTH – SENIOR CITIZEN AND ARE NOT DEPENDENT ON MR. MOHIT 26000

HELATH CHECK UP OF WIFE AND SELF 5000HELATH CHECK UP OF PARENTS 5000INTEREST FROM PPF A/C 30000INTEREST FROM SAVING BANK ACCOUNT 12000PF DEDUCTED BY M/S XYZ COMPANY LTD. 30000

DETAILS OF TDS M/S XYZ COMPANY LTD. 21000

OTHER DETAILS OF MR. MOHIT PAN LKDIU4444TSTATUS INDIVIDUALDATE OF BIRTH 30.06.1970WARD NO. 20(6) CALCULATE THE TAXABLE INCOME AND TAX PAYABLE OF MR. MOHIT.

Solution:

NAME MOHITSTATUS INDIVIDUALASS. YEAR 2016-17PAN LKDIU4444TDATE OF BIRTH 30.06.1970


INCOME FROM SALARY SALARY RECEIVED (AS PER FORM – 16) – 600000(M/S MOHAN ASSOCIATES LTD.)LOSS FROM HOUSE PROPERTYRENT FROM COMMERCIAL PROPERTY 100000LESS: MUINICIPAL TAX 30000

70000LESS: STANDARD DEDUCTION FOR REPAIR ETC.@ 30% 21000

NET RENTAL INCOME 49000LESS: INTEREST ON BORROWED CAPITAL 30000

NET INCOME FROM HOUSE PROPERTY 19000

INCOME FROM CAPITAL GAINSLONG TERM CAPITAL GAIN ON SALE OF SHARES 0

SHOT TERM CAPITAL GAINS ON SALE OF SHARES 5000 5000

INCOME FROM OTHER SOURCESINTEREST ON PPF (EXEMPT) 30000 0INTEREST FROM SAVING BANK A/C 12000 12000DIVIDEND FROM MUTUAL FUNDS 4000 0DIVIDEND FROM SHARES 5000 0INTEREST FROM TAXABLE BONDS 12500 12500INTEREST FROM POST OFFICE (MIS) 10000 10000 34500


LESS : DEDUCTIONS (CHAPTER VI-A)DEDUCTION U/S 80CLIFE INSURANCE PREMIUM PAID 10000CONTRIBUTION TO P.F. A/C 30000AMOUNT DEPOSITED IN PPF A/C 100000TUTION FEES OF CHILDREN 36000REPAYMENT OF HOUSING LOAN 260000

TOTAL 426000RESTRICTED TO 150000DEDUCTION U/S 80CCD(1B)CONTRIBUTION UNDER NEW PENSION SCHEME 70000

RESTRICTED TO 50000DEDUCTION U/S 80D

TOTAL DEDUCTIONS 200000

MEDICALINSURANCE PREMIUM PAID FOR SELF- WIFE AND CHILDREN 21000

21000AMOUNT PAID FOR HEALTH CHECK UP OF SELF-WIFE AND CHILDREN 5000

26000RESTRICTED TO 25000MEDICAL INSURANCE PREMIUM PAID FOR PARENTS WHO ARE SENIOR CITIZEN 26000

AMOUNT PAID FOR HEALTH CHECK UP OF PARENTS 5000

31000RESTRICTED TO 30000 55000

DEDUCTION U/S 80TTA 10000 10000

TOTAL TAXABLE INCOME 393500

TAX ON RS. 393500/= 14350

TAX ON SHORT TERM CAPITAL GAIN @ 15% ON RS.5000/= 750

TOTAL TAX PAYABLE 15100LESS: REBATE US/ 87-A 2000NET TAX PAYABLE 13100ADD: EC + S&HEC @ 3% 393TAX PAYABLE 13493LESS: TDS ON SALARY-M/S XYZ CO. LTD. 21000REFUND DUE 7507


Illustration: MS. CHETNA GUPTA HAS THE FOLLOWING DETAILS – DURING FINANCIAL YEAR 2015-16

PARTICULARS AMOUNT (RS.)INTEREST RECEIVED ON FDR – CITIBANK 13355INTEREST ON FDR – SOUTH INDIAN BANK 2575INTEREST ON FDR – UNION BANK OF INDIA 43928INTEREST FROM SAVING BANK ACCOUNTS 3580INTEREST FROM DEBENTURES 888INTEREST FROM PPF A/C 138438

DIVIDEND RECEIVED FROM MUTUAL FUNDS 12906LIFE INSURANCE PREMIUM PAID 23447AMOUNT DEPOSITED IN PUBLIC PROVIDENT FUND A/C 147000

DETAILS OF TDS CITIBANK 1353UNION BANK OF INDIA 4393

OTHER DETAILS OF MS. CHETNA GUPTA PAN AABCD1010MSTATUS INDIVIDUALRESIDENTIAL STATUS NON-RESIDENT (NRI)DATE OF BIRTH 10.01.1984WARD NO. PREPARE THE COMPUTATION OF INCOME OF MS. CHETNA GUPTA ?

Solution:

NAME MS. CHETNA GUPTA

STATUS INDIVIDUALRESIDENTIAL STATUS NON-RESIDENTASS. YEAR 2016-17PAN AABCD1010MDATE OF BIRTH 10.01.1984


INCOME FROM OTHER SOURCESINTEREST ON FDR – CITIBANK 13355INTEREST ON FDR – SOUTH INDIAN BANKCITIBANK 2575

INTEREST ON FDR – UBI 43928INTEREST FROM SAVING BANK A/C 3580INTEREST FROM DEBENTURES 888INTEREST ON PPF (EXEMPT) 138438 0DIVIDEND RECD (EXEMPT) 12906 0 64326


LESS : DEDUCTIONS U/S 80-CLIC PREMIUM 23447PPF 147000

170447RESTRICTED TO 150000/= 150000

US 80TTAINTEREST ON SAVING BANK A/C 3580NET TAXABLE INCOME -89254NET TAX PAYABLE 0LESS: TDSCITI BANK 1353TDS – UBI 4393 5746

REFUND DUE 5746


Illustration: MR.ABHIK SHARMA HAS THE FOLLOWING DETAILS – DURING FINANCIAL YEAR 2015-16


SALARY RECEIVED FROM M/S MOHAN ASSOCIATES LTD. 2611475(AS PER FORM 16) INTEREST PAID ON BORROWED CAPITAL FOR RESIDENTIAL HOUSE 1157621INTEREST FROM PPF A/C 30308INTEREST ON SECURITY DEPOSIT 6437AMOUNT DEPOSITED IN PUBLIC PROVIDENT FUND A/C 100000PF DEDUCTED BY M/S MOHAN ASSOCIATES LTD. 87000PRINCIPAL AMOUNT OF RESIDENCIAL HOUSING LOAN 144000

DETAILS OF TDS M/S MOHAN ASSOCIATES LTD. 387363

OTHER DETAILS OF MR. ABHIK SHARMA PAN ACIKJ1896PSTATUS INDIVIDUALDATE OF BIRTH 25.06.1978WARD NO.

Solution:

NAME ABHIK

SHARMASTATUS INDIVIDUALASS. YEAR 2016-17PAN ACIKJ1896PDATE OF BIRTH 25.06.1978


INCOME FROM SALARY SALARY RECEIVED (AS PER FORM – 16) – 2611475

(M/S MOHAN ASSOCIATES LTD.)LOSS FROM HOUSE PROPERTYINTEREST ON BORROWED CAPITAL -1157621

INCOME FROM OTHER SOURCESINTEREST ON PPF (EXEMPT) 30308 0INTEREST FROM SECURITY DEPOSIT 6437


LESS : DEDUCTIONS (CHAPTER VI-A)SEC-80-CCONTRIBUTION TO P.F. 87000PPF 100000REPAYMENT OF HOUSING LOAN 144000

TOTAL 331000RESTRICTED TO 150000TOTAL DEDUCTIONS 150000

TOTAL TAXABLE INCOME 1310291ROUND OFF 1310290

TAX ON ABOVE 250000 0 0250000 10% 25000 500000 20% 100000 310290 30% 93087

TOTAL 1310290 218087 218087

ADD: EC + S&HEC @ 3% 6543TAX PAYABLE 224630LESS: TDS ON SALARY-MCKINSEY + OTHERS 387363

REFUND DUE 162733


Illustration:MS. MAMTA BHATT HAS THE FOLLOWING DETAILS –DURING FINANCIAL YEAR 2015-16PARTICULARS AMOUNT

(RS.)PROFESSIONAL CHARGES RECEIVED 445000BANK CHARGES PAID 391SALARY RECEIVED FROM M/S JAY ASSOCIATES (P) LTD. 192000INTEREST RECEIVED ON FDR – STATE BANK OF INDIA 6539INTEREST FROM SAVING BANK ACCOUNTS 11978INTEREST FROM PPF A/C 105892AMOUNT DEPOSITED IN PUBLIC PROVIDENT FUND A/C 150000OTHER DETAILS OF MS. MAMTA BHATTPAN ADFGH1120PSTATUS INDIVIDUALDATE OF BIRTH 16.02.1960WARD NO.PREPARE THE COMPUTATION OF INCOME OF MS. MAMTA BHATT ?

Solution:

NAME MS. MAMTA BHATT

STATUS INDIVIDUALASS. YEAR 2016-17 MPAN ADFGH1120PDATE OF BIRTH 16.02.1960


INCOME FROM PROFESSION

PROFESSIONAL CHARGES RCD 445000 LESS: BANK CHARGES 391 444609

INCOME FROM SALARYSALARY RCD FROM JAY ASSOCIATES PVT. LTD. 192000

INCOME FROM OTHER SOURCESINTEREST FROM FDR (SBI) 6539INTEREST FROM SAVING BANK A/C 11978

INTEREST ON PPF A/C (EXEMPT) 105892 0 18517


LESS : DEDUCTIONS U/S 80PPF 150000INTEREST FROM SAVING BANK A/C 10000 160000

NET TAXABLE INCOME 495126ROUNDED OFF 495130TAX ON ABOVE 24513

250000 0 0245130 10% 24513

TOTAL 495130 24513

LESS: REBATE U/S 87-A 200022513

ADD: EC + S&HEC @ 3% 735 TOTAL TAX PAYABLE 23248

NOTEFORM NO. ITR-4 SHALL BE USED TO SUBMIT THE RETURN FOR ABOVE TRANSACTIONS.

Illustration: M/S RAM CHANDER HUF HAS THE FOLLOWING DETAILS DURING F.Y. 2015-16.

PARTICULARS AMOUNT (RS.)RENT RECEIVED FROM M/S SIMPLE RUBBERS 600000RENT RECEIVED FROM M/S RAMA & CO. 60000RENT RECEIVED FROM M/S PREM NATH ASSOCIATES 60000INTEREST FROM SAVING BANK ACCOUNTS 9590INTEREST ON FDR WITH STATE BANK OF INDIA 1655INTEREST ON FDR WITH UNION BANK OF INDIA 6474

DETAILS OF TDS

STATE BANK OF INDIA 167M/S SIMPLE RUBBERS 60000

OTHER DETAILS OF M/S RAM CHANDER HUF PAN AAASP1542TSTATUS HUFDATE OF BIRTH 20.02.1984WARD NO. PREPARE THE COMPUTATION OF INCOME OF RAM CHANDER HUF?

Solution:

NAMERAM CHANDER (HUF)

STATUS HUFASS. YEAR 2016-17PAN AAASP1542TDATE OF INCORPORATION 20.02.1984


INCOME FROM HOUSE PROPERTYSIMPLE RUBBERS 600000RAMA & COMPANY 60000PREM NATH ASSICIATES 60000 720000 ANNUAL VALUE 720000LESS : DEDUCTION U/S 24 (STANDARD DEDUCTION @30%) 216000

NET INCOME FROM RENT 504000

INCOME FROM OTHER SOURCES INTEREST FROM FDR (SBI) 1655INTEREST FROM FDR (UBI) 6474INTEREST FROM SAVING BANK A/C 9590 17719


LESS: DEDUCTIONS UNDER CHAPTER VI-AINTEREST ON S/B ACCOUNT 9590

NET TAXABLE INCOME 512129ROUND OFF 512130

.TAX ON ABOVE

250000 0250000 10% 2500012130 20% 2426

TOTAL 512130 27426 27426ADD: EC + S&HEC @ 3% 823TOTAL TAX PAYABLE 28249

LESS: TAX PAID TDS ON FDR – SBI 167TDS ON RENT – M/S SIMPLE RUBBERS 60000 60167

REFUND 31918


Illustration: MS. MEENAKSHI HAS THE FOLLOWING DETAILS – DURING FINANCIAL YEAR 2015-16


SALARY RECEIVED FROM M/S RAHUL & COMPANY 594800(AS PER FORM 16) INTEREST RECEIVED ON FDR – STATE BANK OF INDIA 18059MONTHLY INTEREST RECEIVED FROM POST OFFICE 16800INTEREST ON FDR – IDBI BANK 35089INTEREST FROM SAVING BANK ACCOUNTS 12358INTEREST ON FDR – KARNATAKA BANK 14909INTEREST FROM PPF A/C 64883AMOUNT DEPOSITED IN PUBLIC PROVIDENT FUND A/C 150000MEDICAL INSURANCE PREMIUM PAID 3405

DETAILS OF TDS M/S RAHUL & COMPANY 17654KARNATAKA BANK 1491STATE BANK OF INDIA 1806IDBI BANK 3509SELF ASSESSMENT TAX PAID 7184

OTHER DETAILS OF MS. MEENAKSHI

PAN ADBFG1485KSTATUS INDIVIDUALDATE OF BIRTH 12.03.1980WARD NO. PREPARE THE COMPUTATION OF INCOME OF MS.MEENAKSHI

Solution:

NAME MS. MEENAKSHIFATHER’S NAME MR. ASHOK KUMARSTATUS INDIVIDUALASS. YEAR 2016-17PAN ADBFG1485KDATE OF BIRTH 12.03.1980


INCOME FROM SALARY SALARY RECEIVED (AS PER FORM – 16)

(M/S RAHUL & COMPANY) 594800

INCOME FROM OTHER SOURCESINTEREST ON FDR – SBI 18059INTEREST FROM SAVING BANK A/C 12358

MIS FROM POST OFFICE 16800INTEREST ON FDR – IDBI BANK 35089INTEREST ON FDR – KARNATAKA BANK 14909

INTEREST ON PPF (EXEMPT) 64883 0 97215


LESS : DEDUCTIONS U/C VI AU/S 80-C PPF 150000

U/S 80-D MEDICAL INSURANCE PREMIUM 3405

US 80TTA INTEREST ON SAVING BANK A/C 10000 163405

NET TAXABLE INCOME 528610TAX ON ABOVE 250000 0 0

250000 10% 25000

28610 20% 5722 TOTAL 528610 30722

TAX PAYABLE 30722ADD: EC + S&HEC @ 3%NET TAX PAYABLE 922INTEREST PAYABLETOTAL TAX PAYABLE 31644LESS: TAX PAID TDS ON SALARY (RAHUL & CO.) 17654TDS – KARNATAKA BANK LTD 1491TDS – SBI 1806TDS- IDBI 3509SELF ASSESSMENT TAX PAID 7184 31644 TAX PAYABLE/REFUND DUE NIL


Illustration:

Mrs. MAYA DEVI HAD THE FOLLOWING DETAILS DURING THE FINANCIAL YEAR 2015-16:-RENT RECEIVED FROM M/S ABC ENTERPRISES (G-20/89 NEHRU PLACE) 400680RENT RECEIVED FROM M/S ABC ENTERPRISES (G-4/89 NEHRU PLACE) 216300RENT RECEIVED FROM M/S R K BROTHERS (B-1 RANJEET NAGAR) 157500RENT RECEIVED FROM M/S R K BROTHERS (B-2 RANJEET NAGAR) 157500INTEREST FROM SAVING BANK ACCOUNT 30833INTEREST ON FDR WITH STATE BANK OF INDIA 19384INTEREST ON FDR WITH IDBI BANK 1458431INTEREST ON FDR WITH SOUTH INDIAN BANK 161198INTEREST ON FDR WITH UNION BANK OF INDIA 154364INTEREST FROM M/S RAMA BUILDERS 25800INTREST FROM PPF ACCOUNT 129036MUNICIPAL TAX PAID 43869AMOUNT DEPOSITED IN PPF A/C 1000FIX DEPOSIT WITH IDBI BANK FOR TAX SAVING PURPOSE 250000MEDICAL INSURANCE PREMIUM PAID 17416TDS DEDUCTION:-IDBI BANK 145844STATE BANK OF INDIA 1940SOUTH INDIAN BANK 16120UNION BANK OF INDIA 15436RAMA BUILDERS 25080ABC ENTERPRISES 61704PERSONAL DETAILS OF MRS SUDHA GUPTAPAN AADCG1452J

DATE OF BIRTH 11.05.1938WARD NO. 70(1) DELHISTATUS INDIVIDUAL

Solution:

NAME MRS. MAYA DEVI

STATUS INDIVIDUALASS. YEAR 2015-16PAN AADCG1452JDATE OF BIRTH 11.05.1938WARD NO. 70(1) DELHI


INCOME FROM HOUSE PROPERTYPROPERTY NO. G-20/89 400680PROPERTY NO. G-4/89 216300PROPERTY NO. B-1, RANJEET NAGAR 157500

PROPERTY NO. B-2, RANJEET NAGAR 157500 931980

LESS: MUNICIPAL TAXES 43869ANNUAL VALUE 888111LESS : DEDUCTION U/S 24 (STANDARD DEDUCTION @30%) 266433

NET INCOME FROM RENT 621678

INCOME FROM OTHER SOURCESINTEREST FROM FDR (SBI) 19384INTEREST FROM FDR (SIB) 161198INTEREST FROM FDR (UBI) 154364INTEREST FROM FDR (IDBI) 1458431INTEREST FROM SAVING BANK A/C 30833

INTEREST FROM RAMA BUILDERS 250800

INTEREST FROM PPF A/C (EXEMPT) 129036 0 2075010

GROSS TOTAL INCOME 2696688LESS: DEDUCTIONS UNDER CHAPTER VI-APPF 1000FIX DEPOSIT WITH BANK 250000

251000RESTRICTED TO 150000.00INTEREST FROM SAVING BANK 10000

ACCOUNTSMEDICLAIM 17416 177416NET TOTAL INCOME 177416.00 2519272ROUND OFF 2519270TAX ON ABOVE

300000 0200000 10% 20000500000 20% 100000

1519270 30% 455781 575781TOTAL 2519270

ADD: EC + S&HEC @ 3% 17273TOTAL TAX PAYABLE 593054LESS: TAX PAID TDS ON FDR – SIB 16120TDS ON FDR – SBI 1940TDS ON FDR – UBI 15436TDS – RAMA BUILDERS 25080TDS – FDR – IDBI 145844TDS – ABC ENTERPRISES 61704 266124NET TAX PAYABLE 326930


Documents

h Web viewrent received from m/s prem nath associates. 60000. interest from saving bank accounts. 9590. interest on fdr with state bank of india. 1655