20 July 2024
To compute the income tax liability for A for Assessment Year 2018-19 (Financial Year 2017-18), we will calculate based on the income details provided:
1. **Calculate Gross Total Income (GTI):** Gross Total Income = Pension Income + Salary Income Gross Total Income = Rs. 7,22,000
2. **Calculate Deductions under Section 80C:** - PF Contribution: Rs. 60,000 (Assuming it is within the limit of Rs. 1,50,000 allowed under Section 80C)
3. **Net Taxable Income (After Deductions):** Net Taxable Income = Gross Total Income - Deductions under Section 80C
Net Taxable Income = Rs. 6,62,000
5. **Tax Calculation:**
- Tax on income from Rs. 2.50L to Rs. 5L = 5% of (Rs. 6.62L - Rs. 2.50L) = 5% of Rs. 4,12,000 = Rs. 20,600
- Tax on income from Rs. 5L to Rs. 6.62L = 20% of Rs. 1,62,000 = Rs. 32,400
6. **Total Tax Liability:** Total Tax Liability = Tax on income from Rs. 2.50L to Rs. 5L + Tax on income from Rs. 5L to Rs. 6.62L Total Tax Liability = Rs. 20,600 + Rs. 32,400 Total Tax Liability = Rs. 53,000
This computation assumes that the PF contribution of Rs. 60,000 is within the permissible limit under Section 80C and that no other deductions or exemptions apply. For accurate tax computation and advice tailored to individual circumstances, it's recommended to consult with a qualified tax professional or chartered accountant.
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