I have some doubt regarding Sec 260AA and Sec 87A.
Please check the following two Income tax calculations and kindly let me know if there is any mistake.
1-Employee does not have PAN number
Total Income 7,46,000.00 Deductions - Taxable income 7,46,000.00 Tax 79,200.00 Cess @3% 2,376.00 Total income tax - A 81,576.00 20% of Taxable Income - B 1,49,200.00
Applicable income tax A or B which ever is higher (U/S 260AA) 1,49,200.00
2-Income Tax-Rebate U/S 87 A
Total Income 3,16,000.00 Deductions U/S 80C 1,00,000.00 Taxable Income 2,16,000.00 Tax 1,600.00 Cess 48.00 Total income Tax 1,648.00 Less Rebate U/S 87A 2,000.00
Balance Nil
Please check these, If these two illustrations are correct all my doubts will clear. Please advice.
06 October 2013
Both the calculations are correct but in First if No PAN is given then there is no calculation required straight 20% to be deducted but calculation is required where the person is a salaried one as all the details are with the employer and he can calculate the taxable income otherwise no one can calculate any income and therefore he has to deducted @20%
CAclubindia
