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.	Particulars	Rupees
1	Gross Salary	4,70,0(X)
2	Amount spent on treatment of a dependent, being person with disability (but not severe disability)	7000
3	Amount paid to LIC with regard to annuity for the maintenance of a dependent, being person with disability (But not severe disability)	60,000
4	GPF Contribution	25,000
5	LIP Paid	10,000
6	Interest Income on Savings Account	12,000

Computation of Tax

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

(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.