Income tax Calculation Example 2 for Salary Employees 2023-24

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

Example 2

For Assessment Year 2023-24

Calculation of Income Tax in the case of an employee below the age of sixty years having a handicapped dependent (With valid PAN furnished to employer).

S.No.ParticularsRupees
1Gross Salary4,70,0(X)
2Amount spent on treatment of a dependent,
being person with disability (but not severe disability)
7000
3Amount paid to LIC with regard to annuity for the
maintenance of a dependent,
being person with disability (But not severe disability)
60,000
4GPF Contribution25,000
5LIP Paid10,000
6Interest Income on Savings Account12,000

Computation of Tax

S.No.ParticularsRupees
IGross Salary4,70,000
2Less: Standard deduction u/s 16(ia)50,000
3Add: Income from Other Sources
Interest Income on Savings Account
Rs 12,000
4Gross Total Income4,32,000
5Less: Deduction U/s 80DD (Restricted to Rs.75,000/- only)60,000
6Less: Deduction U/s 80C (i) GPF Rs.25,000/-
(ii) LIP Rs.10,000/-
35,000
7Less: Deduction u/s 8OTTA on
Interest Income on savings account (restricted to Rs 10000/-)
10000
8Total Income3,27,000
9Income Tax thereon/payable
(includes Rebate of Rs 12500 as per Section 87A)
Nil
10Add:
Health & Education Cess @ 4%.
Nil
11Total Income Tax payableNil
12Rounded off toNil

(a), 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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