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).

IGross Salary5,55,000
2Medical Reimbursement by employer on the treatment of self and dependent family member35,000
3Contribution of GPF20,000
4LIC Premium20,000
5Repayment of House Building Advance25,000
6Tuition fees for two children(,0,000
7Investment in Unit-Linked Insurance Plan30,000
8Interest Income on Savings Account8,000
9Interest Income on Time Deposit15,000

Computation of Tax

1Gross Salary5.55.000
2Add: Perquisite in respect of reimbursement of Medical Expenses35
3Less: Standard deduction u/s 16(ta)50
4Income from Other Sources
i)Interest Income on Savings Account Rs 8,000
ii)Interest Income on Time Deposit Rs 15.000
5Total Income5.63.000
6a. 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-
7Total Income405000
8Income Tax thereon/payable (includes Rebate of Rs
12500 as per Section 87A)
N i l
Health & Education Cess A 4%.
N i l
10Total Income Tax pax ableN i l
12Rounded off toNil

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.

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