Example 3
For Assessment Year 2018-19
Calculation of Income Tax in the case of an employee below age of sixty years where medical treatment expenditure was borne by the employer (With valid PAN furnished to employer).
| S.No. | Particulars | Rupees |
|---|---|---|
| 1 | Gross Salary | 5,20,000 |
| 2 | Medical Reimbursement by employer on the treatment of self and dependent family member | 35,000 |
| 3 | Contribution of GPF | 20,000 |
| 4 | LIC Premium | 20,000 |
| 5 | Repayment of House Building Advance | 25,000 |
| 6 | Tuition fees for two children | 60,000 |
| 7 | Investment in Unit-Linked Insurance Plan | 30,000 |
| 8 | Interest Income on Savings Account | 8,000 |
| 9 | Interest Income on Time Deposit | 15,000 |
Computation of Tax
| S.No. | Particulars | Rupees |
|---|---|---|
| 1 | Gross Salary | 5,20,000 |
| 2 | Add: Perquisite in respect of reimbursement of Medical Expenses In excess of Rs.15,000/- in view of Section 17(2)(v) |
20,000 |
| 3 | Income from Other Sources i) Interest Income on Savings Account Rs 8,000 ii) Interest Income on Time Deposit Rs 15,000 |
23,000 |
| 4 | Gross Total Income | 5,63,000 |
| 5 | a. Less: Deduction U/s 80C | |
| (i) GPF | ||
| Rs.20,000/- | ||
| (ii) LIC | ||
| Rs.20,000/- | ||
| (iii) Repayment of House Building Advance | ||
| Rs.25,000/- | ||
| (iv) Tuition fees for two children | ||
| Rs.60,000/- | ||
| (v) Investment in Unit-Linked Insurance Plan | ||
| Rs.30,000/- | ||
| Total =Rs.1,55,000/- | ||
| 1,58,000 | ||
| Restricted to Rs. 1,50,000/- | ||
| b. Less: Deduction u/s 80TTA on Interest Income on | ||
| savings account (restricted to Rs 8000/- – available only | ||
| on Savings account interest) Rs 8000 | ||
| Total deduction available Rs 1,58,000/- | ||
| 6 | Total Income | 4,05,000 |
| 7 | Income Tax thereon/payable | 7,750 |
| 8 | Add: | |
| (i). Education Cess @2%
(ii). Secondary and Higher Education Cess @1% |
155
78 |
|
| 9 | Total Income Tax payable | 7983 |
| 10 | Rounded off to | 7980 |
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