Income tax Calculation Example 3 for Salary Employees 2023-24

Income tax Calculation Example 2 For Assessment Year 2023-24 – Example 3

Example 3

For Assessment Year 2023-24

Calculation of Income Tax in the case of an  emplovee, below age of sixty years where medical treatment expenditure was borne by the employer (With valid PAN* furnished to employer).

S&No.	Particulars	Rupees
I	Gross Salary	5,55,000
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	(,0,000
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	5.55.000
2	Add: Perquisite in respect of reimbursement of Medical Expenses	35
3	Less: Standard deduction u/s 16(ta)	50
4	Income from Other Sources i)Interest Income on Savings Account Rs 8,000 ii)Interest Income on Time Deposit Rs 15.000	23
5	Total Income	5.63.000
6	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 .4:U.1,55,000/- Restricted to Rs. 1,50,000/- b. Less: Deduction u/s 8OTTA on Interest Income on savings account (restricted to Rs 10,000/- – available only on Savings account interest) Rs 8000 Total deduction available Rs 1,58,00W-	1,58,000
7	Total Income	405000
8	Income Tax thereon/payable (includes Rebate of Rs 12500 as per Section 87A)	N i l
9	Add: Health & Education Cess A 4%.	N i l
10	Total Income Tax pax able	N i l
12	Rounded off to	Nil

or Aadhaar number, as the case may be. # It may be noted that tax liability may not be the same in case the taxpayer opts for concessional tax regime under section 115BAC of the Act.