Compute tax liability

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 July 2013 Sir,

if i gets following amount as salary then what I will pay tax.

Basic Salary 360000.00 p.a.
HRA 108000.00 p.a.
Personal Allowances 72000.00 p.a.
Transport Allowances 90000.00 p.a.
Special Allowances 30000.00 p.a.
Bonus 60000.00 p.a.
Total 720000.00 p.a.

Kindly compute the tax liabilites.

Awaiting ur reply.

CA Pooja Agarwal

CA Pooja Agarwal (Expert)
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12 July 2013 data inadequate

Querist : Anonymous

Querist : Anonymous (Querist)

12 July 2013 what have you required for comuting tax liability

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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16 July 2013 What is your rent payment? and any deductions u/s.80C & 80D etc. you having?

Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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20 July 2024 To compute the tax liability based on the salary components provided, let's break down the computation for Assessment Year 2022-23 (Financial Year 2021-22):

### Salary Components:
- Basic Salary: Rs. 3,60,000 per annum
- HRA (House Rent Allowance): Rs. 1,08,000 per annum
- Personal Allowance: Rs. 72,000 per annum
- Transport Allowance: Rs. 90,000 per annum
- Special Allowance: Rs. 30,000 per annum
- Bonus: Rs. 60,000 per annum
- Total Gross Salary: Rs. 7,20,000 per annum

### Step-by-Step Tax Computation:

1. **Calculate Gross Salary for Tax Purposes:**
Gross Salary = Basic Salary + HRA + Personal Allowance + Transport Allowance + Special Allowance + Bonus
Gross Salary = Rs. 7,20,000

2. **Deductions Available:**
- Standard Deduction: Rs. 50,000 (for salaried individuals)
- Professional Tax (if applicable): To be deducted from gross salary

Net Taxable Salary = Gross Salary - Standard Deduction - Professional Tax (if any)

3. **Calculate Taxable Income:**
- Net Taxable Salary = Rs. 6,70,000

5. **Tax Calculation:**

- Tax on income from Rs. 2.50L to Rs. 5L
= 5% of (Rs. 5L - Rs. 2.50L)
= 5% of Rs. 2,50,000
= Rs. 12,500

- Tax on income from Rs. 5L to Rs. 6.70L:
= 20% of (Rs. 6.70L - Rs. 5L)
= 20% of Rs. 1,70,000
= Rs. 34,000

6. **Total Tax Liability:**
Total Tax Liability = Rs. 12,500 + Rs. 34,000
Total Tax Liability = Rs. 46,500

### Summary:
- **Gross Salary:** Rs. 7,20,000 per annum
- **Standard Deduction:** Rs. 50,000
- **Net Taxable Salary:** Rs. 6,70,000
- **Income Tax Liability:** Rs. 46,500

This computation assumes that the individual is availing the standard deduction and no other deductions or exemptions are considered. Professional tax, if applicable, would be deducted from the gross salary before arriving at the taxable income. For precise tax advice tailored to individual circumstances, consulting with a qualified tax professional or chartered accountant is recommended.